Governor ’s

2006 Capital Budget

Recommendations

Money Matters 06.01 February 2006

This paper summarizes the Capital Budget recommendations submitted to the Legislature by Governor Tim Pawlenty. Part one provides an overview of the capital budget recommendations. Part two provides detailed recommendations organized according to the jurisdictions of the House of Representatives’ fiscal committees.

Overview of Capital Budget Recommendations...... 1

Detailed Budget Recommendations ...... 5 Higher Education ...... 7 Human Services and Veteran's Home Board...... 11 Public Safety ...... 15 Environment and Agriculture...... 17 Jobs & Economic Opportunity...... 21 State Government...... 25 Transportation ...... 29 Governor's Recommendations Spreadsheet ...... 31 Fiscal Staff Assignments ...... 39

Fiscal Analysis Department House of Representatives

Capital Budget Overview

In early January, Governor Pawlenty introduced his capital budget recommendations for the 2006 legislative session. Over $2.1 billion worth of project requests were submitted for consideration by the Governor in 2005, and of those submitted, Governor Pawlenty recommended $897 million worth of new requests and governor’s initiatives. The Governor’s 2006 recommendations follow closely on the heels of an $885 million bill passed by the legislature just last year. With the passage of a major capital bill this year, the fiscal 2006-2007 biennium will see more general obligation investment than any biennium in state history.

Of the $897 million in recommendations, $811 million will be paid for with general obligation or GO bonds, with debt service coming from the state’s general fund. The remaining projects would be paid for from other sources such as user financing and the trunk highway bonds.

Planning estimates (included in the November 2005 forecast) for the 2006 bonding bill set aside sufficient debt service for $560 million in general obligation bonding in the forthcoming legislative session. The Governor’s recommendations of $811 million in general obligation bonds will require additional dollars from the general fund to pay debt service over what had been set aside in the November forecast. An increase in debt service of $6 million for the FY 2006-07 biennium would be necessary to meet the additional obligation, and an additional $49.9 million next biennium. The Governor’s recommendations also include $6.2 million from the general fund in the current biennium for projects that require cash. In total, the Governor’s recommendations require an additional $12.2 million from the general fund in the upcoming biennium.

Table 1 Governor's Recommended Capital Budget (dollars in thousands) Recommended Finance Area Spending New Projects: K-12 Education $19,117 Higher Education $270,143 Economic Development $116,872 Environment $155,200 Transportation $140,977 State Government $30,332 Health and Human Services $80,304 Judiciary Finance $70,364 Grants to Political Subdivisions $13,000 Bond Sale Expenses $886 Total $897,195

Overview, Page 1 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

Along with $811 million in recommended general obligation spending, the Governor recommends $35.3 million in trunk highway bonds to fund improvements in facilities owned by the Department of Transportation. In addition, Governor Pawlenty recommends $6.2 million in general fund cash projects and $44.3 million in user financed projects. User financed debt service can be in the form of charges to higher education institutions for one third of the cost of new construction projects, or in the form of loan programs that are repaid by the borrower, such as higher educational projects. Table 1 (previous page) outlines recommended spending by category.

The maximum amount of general obligation bond spending the legislature could authorize (and stay within the current guidelines) is $965 million. Spending to the maximum capacity would call for $9.2 million in general fund debt service for the 2006/07 fiscal biennium and an additional $78.7 million in fiscal the 2008/09 biennium above November 2005 forecast amounts.

Debt Capacity

Minnesota’s debt capacity is an estimation of how much the state can borrow, projected for the current year or biennium. During the state financial crunch of the late seventies, the state’s bond rating fell from a “AAA” rating, the highest possible rating, to a “AA” rating. Bond ratings denote the financial strength of the borrower. A highly rated bond is a safer investment, but brings a lower rate of return to the investor. Because the lower bond rating signifies a riskier investment, it carries a higher rate of return for the investor. A drop to “AA” rating caused the state to pay a higher rate of interest on its’ bonds and reduced the amount that the state could afford to borrow.

During the end of the Perpich administration and throughout the Carlson administration, the governors worked with the Department of Finance to establish a debt management policy to restore the state’s AAA rating. Several strict policies were adopted to manage debt and keep limits on spending. Even though the policies were put into place in late 1979, it was not until 1997 that the AAA rating from all three rating agencies, Moody’s, Fitch, and Standard and Poor, had been restored. The state had spent millions in higher debt costs over the seventeen year period due to the lower rating, but the debt management policies and a strong Minnesota economy helped the state once again attain the AAA rating.

Of all the debt management guidelines, the most commonly known policy is referred to as the “three percent guideline”. This rule states that the appropriation for general fund debt service shall not exceed three percent of non-dedicated general fund revenues in a biennium. Simply stated, the policy dictates that up to three percent of non-dedicated general fund revenues can be used to make payments on money the state borrows, giving the state a self imposed credit limit.

Minnesota currently has $3.56 billion in outstanding general obligation bonds. The payments on these bonds currently consume 2.5% of general fund revenues. The Department of Finance then calculates the maximum capacity, or how much the state can borrow and prevent the payments on those bonds from consuming more than three percent of general fund revenues.

Given the current economic downturn, Minnesota’s maximum debt capacity has shrunk from one year ago. Our state’s debt capacity peaked at about $1.2 billion per biennium, but now has

Overview, Page 2 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

decreased to slightly over one billion per biennium.

Though the state still carries a AAA rating from Fitch and Standard & Poor, Moody’s has slightly downgraded the rating to Aa1. The downgrade was due to mainly to Minnesota’s deficit problems and sluggishness of the state’s economy. Rating agencies look at several factors when assessing credit worthiness, such as maintaining structural balance into the future and budget reserve accounts. If the ratings are downgraded further, future costs would increase.

The Governor’s 2006 recommendations are compared with recent bills in Figure 1.

Figure 1 2006 Governor's Capital Budget Priorities

2000 Bill 2002 Bill Ec on Devel. Ec on Devel. 10.3% 5.7% Higher Ed. Environ & Ag 26.0% 15.8% Environ & Ag Higher Ed. 22.2% 43.3% Transportation 10.4% K-12 HHS HHS 15.5% 5.7% 4.6% State Gov. Judiciary State Gov. K-12 16.6% 3.8% 14.1% 2.3% Judiciary 3.9%

2005 Bill Gov 2006

Ec on Devel. Ec on Devel. 14.5% 19.7% Higher Ed. Higher Ed. 30.1% 34.1% Environ & Ag 17.3% Environ & Ag 16.4% K-12 K-12 2.1% 2.7% Transportation Judiciary Transportation Judiciary 15.7% 7.9% 11.7% 10.5% HHS St ate Gov. HHS State Gov. 9.0% 3.4% 3.3% 1.6%

For further information on Capital Budget issues contact John Walz at 296-8236 or [email protected]

Overview, Page 3

Education Finance

The Governor’s capital budget recommendations for Education Finance include projects that range from school construction and renovation to state agency asset preservation. Of the $82.4 million requested by the Perpich Center for Arts Education, the Minnesota Department of Education and the Minnesota State Academies for the Deaf and for the Blind, the Governor’s recommendations in this area total $19.1 million, with $1.1 million designated for the Perpich Center, $10.0 million for Department of Education projects, and $8.1 million for the State Academies. The Governor’s capital budget recommendations also include:

Perpich Center for Arts Education • $1.1 million for asset preservation designated for a sewer line, HVAC improvements in the east half of the main school building, roof replacement on the east half of the main building, and sidewalk and road repairs. $525,000 of this amount is for demolition of the Beta Building, a storage building which in its present state cannot be entered.

Department of Education • $10.0 million for a capital loan for the Red Lake School District. The district had requested $55.4 million for continued renovation of and additions to the middle and high schools, additional elementary classrooms at the Red Lake Elementary school and the addition of a media center and Head Start center at Ponemah Elementary school. In recommending the $10.0 million, the Governor did not indicate which parts of the proposal should be funded, only that the administration would “work with the school district to come to common ground on the amount of funding needed.”

Minnesota State Academies • $2.5 million for asset preservation at both the Minnesota State Academy for the Blind and the Minnesota State Academy for the Deaf. Projects included in this recommended amount include roof replacement, sidewalk replacement, road repair, tunnel repair, a drainage system and air quality improvements. • $5.6 million for extensive renovation of Frechette Hall, which is the boy’s residence hall on the Deaf campus of the Academies. The building, constructed in 1967, needs a new electrical system, a new HVAC system, new windows, plumbing upgrades, removal of a fireplace and sunken seating area and addition of an indoor recreational space.

Implications The largest project the Governor recommended in K-12 education is the $10.0 million capital loan for the Red Lake School district. At this time, given the size of the request made by the Red Lake district ($55.4 million), it is not clear what could be accomplished with this amount of funding. The Red Lake School District has little ability to fund construction projects on its own due to the lack of taxable property in the district. Dating back to the 2000 bonding bill, the State has provided the district with $41.6 million in capital loans.

For more information on Education Finance issues, contact Greg Crowe at 296-7165, or [email protected]

Education, Page 5

Higher Education

The Governor’s recommendation’s for higher education includes funding $270 million out of $486 million in requests. As has become customary, Minnesota’s higher education institutions pay for a portion of the costs of new facilities through their operating budgets. Both MNSCU and the pay for one third of the cost of non-HEAPR projects. In the case of the University of Minnesota, the “U” has its own bonding authority and effectively manages their debt. The U project requests to the state are therefore equal to two thirds the cost to complete the project and the university issues its own debt to complete the project. MNSCU, however, asks for the entire cost and pays the state one third of the debt service payments as they come due form its operating funds.

Minnesota State Colleges and Universities, MNSCU The Governor’s capital budget recommendations for the Minnesota State Colleges and Universities include a total of $142.5 million for repair and maintenance and major building projects. The State would pay $101.7 million of the costs and the Minnesota State Colleges and Universities would be responsible for $40.8 million in debt service. The Governor’s recommendations include the following:

• $20 million for Higher Education Asset Preservation and Renewal (HEAPR). The statutory definition of HEAPR projects (M.S. 135A.046) includes code compliance, Americans with Disabilities Act requirements, hazardous materials abatement, access and air quality improvements, building or infrastructure repairs to preserve the interior or exterior of existing buildings, and renewal to support the existing programmatic mission of the campuses. Debt service is not assessed to the system on HEAPR appropriations.

• $32.9 million at Minnesota State University Mankato for construction of an addition to the Trafton Science Center including renovation of part of the existing structure. Phase 2 of this project, which will renovate the rest of the existing structure, will be requested in 2008.

• $19.9 million at Century Community and Technical College for construction of a new science instruction and Learning Resource Center. This project will replace outdated labs and consolidate two libraries into one facility.

• $18.9 million at Community and Technical College for renovation of an existing facility into a new allied health training center and new lab and classroom facilities. This project also renovates existing science labs into general classroom space.

• $14 million at St. Cloud State University for construction of an addition to the Robert H. Wick Science Building and renovation of 12,000 gross square feet of the existing facility.

Higher Education, Page 7 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

• $11.2 million at Winona State University for total renovation of Maxwell Hall. The facility was originally built as a library but will be reconstructed as classroom space, faculty offices, academic support services space and will house the National Child Protection Training Center.

• $6.85 million at St. Cloud Technical College to purchase an adjacent building and parking lot and at Dakota County Technical College to purchase land currently under lease. The system requested $5 million in additional funds for property acquisition at three other campuses.

• $5.14 million for renovation of science and applied technology labs at 10 campuses system wide.

• $5.125 million at Normandale Community College for construction of a classroom and lab addition to the Fine Arts building and renovation of part of the existing facility. This project will also design the phase 2 addition and renovation of the Health and Wellness building. Phase 2 funding will be requested in 2008.

• $4.855 million at Minnesota State College-Southeast Technical College- Red Wing for renovation of student services, library, information technology, customized training, instrument repair and college entry space

• $3 million at St Paul College to design the renovation of applied technology and trade labs and shops and to replace the electrical system.

• $700,000 at Bemidji State University to design an addition to the Sattgast Hall science facility as well as renovation of the existing facility and demolition of the Peters aquatic lab building.

University of Minnesota

The Governor’s capital budget recommendations for the University of Minnesota include a total of $127.6 million for repair and maintenance and major building projects. The University would be responsible for an additional $44 million in cost related to these projects. The Governor’s recommendations include the following:

• $40 million for Higher Education Asset Preservation and Renewal (HEAPR). The statutory definition of HEAPR projects (M.S. 135A.046) includes code compliance, Americans with Disabilities Act requirements, hazardous materials abatement, access and air quality improvements, building or infrastructure repairs to preserve the interior or exterior of existing buildings, and renewal to support the existing programmatic mission of the campuses. Debt service is not assessed to the system on HEAPR appropriations.

Higher Education, Page 8 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

• $26.6 million to construct a new facility to expand the Carlson School of Management on the Twin Cities Campus.

• $15.3 million to construct a new facility for the Labovitz School of Business on the Duluth campus.

• $41.3 million to design and construct a new Science Teaching and Student Services facility and for demolition of the existing Science Classroom building on the Twin Cities campus.

• $4.3 million for design of a new Medical Biosciences building on the Twin Cities campus. The University request was for $40 million to design and construct this facility.

Not included in the University’s request to the governor for bond funds is the Gopher football stadium project. The project would be funded with bonds issued by the university. The request does, however, include a need for an estimated $7.4 million annually from the state for twenty years to help cover the cost of debt service. It is unclear at this juncture, what form a bill for a Gopher stadium might take, but it is possible that the issue could end up included in a capital bill from either body of the legislature.

For further information on Higher Education issues contact Doug Berg at 296-5346 or [email protected]

Higher Education, Page 11

Health and Human Services

The Governor’s recommendations for capital projects in the area of Health and Human Services total $80.3 million solely from general obligation bonds. This represents 9 percent of the Governor’s total recommended bonding package of $897 million and 10 percent of $811 million from general obligation bonds. Of the total $80.3 million in bonding for the Health and Human Services area, $47.8 million is for a Department of Human Services capital project for phase I and II of a project to expand the Moose Lake campus facilities for the Minnesota Sex Offender Program.

Department of Human Services

The Governor’s recommendations include $65.3 million for the following seven capital projects in the Department of Human Services (DHS):

MSOP – Moose Lake Facilities • $44.6 million for phase one of two to expand program capacity for the Minnesota Sex Offender Program (MSOP) at the Moose Lake program site due to increased admission projections in the MSOP population. Funding for phase one of the project is to construct, furnish, and equip additional residential, program, and ancillary service facilities for the MSOP. This request is to develop new secure treatment space to accommodate 400 additional new patients at the MSOP facility at Moose Lake. This project is estimated to increase agency operating costs by $16.8 million in FY 2008-09 and by $67 million in FY 2010-2011.

• $3.2 million for designing and developing construction documents for phase two of the proposed facility expansion of the MSOP at Moose Lake. The Department plans to request additional funding of $47.5 million in the 2008 legislative session for the completion of the project. This project is estimated to increase agency operating costs by $16.8 million beginning in FY 2010-2011.

Other Statewide Projects • $7 million for system-wide campus redevelopment, reuse, and demolition costs at the State’s regional treatment centers to maintain and preserve the integrity of these facilities. The funding will cover demolition, redevelopment, and reuse costs at the Ah-Gwah-Ching Center, Brainerd Regional Human Services Center, and Fergus Falls Regional Treatment Center.

• $2.5 million for a new program/activity building on the lower campus of the St. Peter Regional Treatment Center (RTC) for patients served by the Minnesota Security Hospital

Health & Human Services, Page 11 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

(MSH) programs. The funds will cover designing, construction, furnishing, and equipment for the new building on the St. Peter campus.

• $2.5 million for a two-phase system-wide safety and security improvement/upgrades to State Operated Services (SOS) campus-based facilities that provide secure programs. The funds are for phase one of the safety and security upgrades and will focus on the St. Peter RTC campus. The Department plans to request additional funds for phase two of the safety and security upgrades that will focus on the Anoka Metro RTC, the Minnesota Extended Treatment Option (METO) programs at Cambridge, the MSOP at Moose Lake, and the completion of the projects for the St. Peter RTC.

• $1.5 million for system-wide roof repair and replacement needs for the Department’s SOS facilities at the Anoka Metro RTC, Brainerd Regional Human Services Center, the METO at Cambridge, the MSOP at Moose Lake, and the St. Peter RTC.

• $4.0 million to finance system-wide asset preservation projects at select RTC locations. Funds for the project will cover repair, replacement, and renewal needs specific to the operations of each regional treatment centers.

Veterans Homes Board

The Governor’s recommendations include $15 million for five capital projects for the Veterans Homes Board:

• $6.0 million for agency-wide asset preservation activities including: replacement of exterior envelope components, roof replacement, tuck-pointing, sanitary sewer repairs, mechanical and electrical updates, and resident bathroom and central shower updating. Funds for asset preservation will cover activities at the Minneapolis, Hastings, Luverne, Silver Bay, and Fergus Falls campuses. The 2006 agency request for agency-wide asset preservation is $10 million.

• $2.5 million for the Minneapolis Veterans home campus to upgrade the emergency power system for all patient buildings. The upgrades to the emergency power system will resolve the compliance issues identified by the State Fire Marshall, Board of Electricity, State of Minnesota Codes Division, and OSHA. This project qualifies for the State Home Construction Grant program administered by the U.S. Department of Veterans Affairs (USDVA) which provides 65 percent reimbursement for project costs once the State has appropriated its portion (35 percent).

• $600,000 for the balance of the funding for the Dementia Unit/Wander Area project in Luverne. The funds will cover a structural building addition to the nursing care facility that would contain Alzheimer’s/Dementia (A/D) day programming. The State has already made a

Health & Human Services, Page 12 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

35 percent funding commitment to qualify for USDVA reimbursement for this project in the 2005 capital investment bill.

• $5.3 million for the Minneapolis Veterans home to improve and expand its dining space. The funds are for remodeling and expanding the main dining room, food preparation, and kitchen space in building 17. This project qualifies for the 65 percent USDVA reimbursement.

• $600,000 for construction of a 21-bed special care unit in Fergus Falls. This facility is meant to address increased demand for services, particularly for the needs of its A/D residents. The Governor includes the balance of the agency’s full request for the project, $7.1 million, in the planning estimates for 2008. This project qualifies for the 65 percent USDVA reimbursement. The agency estimates this will increase operating costs by requiring 31 additional FTEs and other program and building-related expenses.

For further information on Health and Human Services finance issues contact Marie Zimmerman at 651-296-7171 or [email protected]

Health & Human Services, Page 13

Public Safety

The Governor’s 2006 public safety capital budget recommends spending of $70.364 million in general obligation bonds for the Department of Corrections. Last years bonding appropriation for the Department was $117.072 million. The new funding is for the following six projects:

• $27.844 million for the Minnesota Correctional Facility in Fairbault to construct one new 416 bed housing unit that would result in a net increase of 181 new beds at the facility. This would also include renovating a living unit into a long-term care unit, adding program space and demolishing one unit. The department aims to lower per diem costs with newer facilities and funding the second phase in the their number one priority. Phase one was funded at $84 million in the 2005 capital bill.

• $19.58 million for the Minnesota Correctional Facility in Stillwater to construct a new 150- bed segregation unit. $3.5 million included in the 2005 bonding bill for the first phase.

• $5.375 million to add 92 beds to the women’s correctional facility at Shakopee.

• $5.899 million for design and construction of a perimeter security fence at the Minnesota Correctional Facility at Shakopee.

• $2.494 million for renovation of an existing building to consolidate and provide additional space for health services at the Minnesota Correctional Facility at Lino Lakes.

• $20 million for asset preservation projects throughout the corrections system. This includes emergency lighting, roof replacement, window replacement, tuckpointing, and asbestos removal.

Implications

The Department of Corrections has made increasing the number of prison beds its top priority. Three of the six recommendations are for new prison beds due to the projected increases in inmate population. The current population projections show an increase of 2,281 inmates by July of 2013, from 8,333 to 11,033. The increase in new beds will also create future operating cost needs for the agency. As an alternative to the Fairbault proposal, a private company building or operating a new prison could be explored by legislative committees .

For additional information on Public Safety issues contact Gary Karger at 296-4181 or [email protected]

Public Safety, Page 15

Agriculture, Environment and Natural Resources

The Governor’s 2006 capital budget recommendations propose bonding of $155.2 million for environment and agriculture related projects.

A summary of the governor’s proposal by agency follows.

Governor’s Recommendations ($’s in thousands) Dept. of Agriculture $1,500 Dept. of Natural Resources $75,500 Pollution Control Agency $11,150 Water and Soil Resources Board $34,350 Minnesota Zoological Garden $21,000 $11,700 Total $155,200

The highlights of the Governor’s recommendations for the agriculture and environment area by agency includes:

Department of Agriculture

• Joint biosafety laboratory facility. The Governor recommends $1.5 million for the outfitting of the joint Department of Agriculture/Department of Health laboratory space to meet more stringent requirements of containment. Specific expenditures would include specialized air and effluent treatment systems.

Department of Natural Resources

• Flood hazard mitigation grants. $9 million is for state cost sharing grants to local units of government to implement measures that reduce or eliminate future flood damages.

• Dam repair. $2 million is recommended for dam repair, reconstruction and removal projects.

• RIM wildlife area land acquisition. $15 million is to acquire land for addition to public wildlife management areas.

• Large scale forest conservation easements. $10 million is to acquire forest land conservation easement in conjunction with the forest legacy program.

• State park infrastructure rehabilitation and natural resource restoration. $3 million is recommended to be used for rehabilitation of aging and failing park non-building infrastructure.

Environment & Natural Resources, Page 17 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

• State park building rehabilitation. $3 million is for rehabilitation projects on buildings within the park system.

• Fisheries acquisition and improvement. $4 million is to acquire aquatic management area parcels, and to make improvements to aquatic management areas.

• State land reforestation. $4 million would be used to complete reforestation of state forestlands after harvest operations.

• State forest land acquisition. $4 million is to acquire private lands within state forest boundaries.

• State park acquisition. $2 million is to acquire private land within state park boundaries.

• Scientific and natural areas. $3 million is to be used to acquire and develop SNA’s statewide.

• Water access. $3 million is recommended for acquisition and construction of boat access sites, fishing piers and shore fishing sites.

• State trails acquisition, rehabilitation and repair. $2 million is to acquire and rehabilitate parcels of the state trail system.

• Stream protection and restoration. $2 million is to complete restoration projects on state waters.

• Native prairie easements and development. $1 million is for acquisition and development of native prairie plant parcels.

• Waterfowl habitat structures. $1 million is to upgrade or replace water control structures related to habitat on public lands and waters.

• Fish hatchery improvements. $1 million is for completing improvements to DNR fish hatchery facilities.

• Asset preservation. $2 million is to be used for maintenance and repair projects in existing DNR facilities statewide.

• Buying out trust fund lands. $1 million is to purchase school trust lands within non revenue producing state owned areas.

Environment & Natural Resources, Page 18 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

• Off road vehicle recreation area. $1.5 million is recommended for acquisition of an off road vehicle recreation area to be located in southern Minnesota. Debt service is recommended to be funded from user charges.

• State park camper cabins. $2 million is recommended to construct approximately 75 rustic camper cabins in state parks. Debt service is recommended to be funded from user charges.

Pollution Control Agency

• Closed landfill program. $7.150 million is to design and construct remedial systems at publicly owned mixed municipal solid waste landfills.

• Capital assistance grants. $4 million is recommended for Capital Assistance Grants. These grants to local communities fund construction of facilities that promote composting, reduce waste, promote recycling, and produce energy from incinerating waste.

Water and Soil Resources Board

• RIM reserve program and CREP II. The Governor requests $25.4 million of bonding for the RIM reserve and CREP programs. The program purchases conservation easements from landowners. The program seeks to improve water quality in lakes, rivers and streams as well as improve ground water quality. Previous state bond spending on this project has been in excess of $90 million dollars. In addition to the bonding the recommendation includes $4.750 million from the general fund for administrative costs.

• Local government road wetland replacement. $3.5 million of bonding is to replace wetlands lost to improvements made to public transportation projects. An additional $700,000 is from the general fund for the administrative costs of the program.

Minnesota Zoological Gardens

• Zoo master plan construction. $13 million is for rehabilitation and addition of exhibits at the zoo.

• Asset preservation. $8 million is recommended for asset preservation projects at the zoo.

Metropolitan Council

Environment & Natural Resources, Page 19 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

• Metropolitan Regional Parks. $11.7 million is recommended for the council’s capital improvements program. Funds are used to acquire and improve the metro regional parks system. The funds will be distributed by the council to the regional park operating agencies. The governor’s request specifies $1.5 million for a grant to the city of South St. Paul for the Port Crosby landfill site development, and $2 million for a grant to the Minneapolis Parks and recreation Board for restoration of the Lake of the Isles Regional Park.

For further information on Agriculture, Environment and Natural Resources issues contact Jim Reinholdz,House Fiscal Analysis Department at 651.296.4281, [email protected].

Environment & Natural Resources, Page 20

Jobs and Economic Opportunity Finance

The Governor’s 2006 capital budget recommendations include 15 projects and programs for the agencies and areas under the jurisdiction of the Jobs and Economic Opportunity Policy & Finance Committee. The total recommended spending is $129.872 million. Of this amount, the Governor recommends that $129.572 million be funded with General Obligation (GO) bonds, and $300,000 be funded from the General Fund.

Department of Employment & Economic Development - $85.2 Million: • Redevelopment Grant Program: The Governor recommends $13 million in GO bonding for the Redevelopment Grant Program. The program will be implemented statewide, with priority given to Greater Minnesota projects. The Department’s original request was for $20 million. • Bioscience Business Development Public Infrastructure Grants Program: The Governor recommends $10 million for the Bioscience Business Development Public Infrastructure Grants Program. Of this amount, the Governor recommends that $8 million be used for the Rochester Bioscience Development Center which was requested by the City of Rochester in their bonding request submission. The remaining money would be used to assist communities in providing public infrastructure to accommodate private development in bioscience and biotechnology industries. • Greater Minnesota Business Development Public Infrastructure Grants Program: The Governor recommends $7.5 million for the Greater Minnesota Business Development Public Infrastructure Grants Program. The program would be used to pay for public infrastructure improvements in support of private sector economic development or industrial park projects. This program would be limited to 50 percent of costs, not to exceed $1 million per grant. The Department’s original request was for $15 million. • Wastewater Infrastructure Fund: The Governor recommends $15 million in GO bonding for the Wastewater Infrastructure Fund (WIF). Also recommended is a $300,000 general fund appropriation for operating expenses related to the WIF program. • State Matching Funds for Federal Environmental Protection Agency (EPA) Capitalization Grants: The Governor recommends $38.8 million in GO bonding to provide state FY 2007 and 2008 matching funds to federal EPA grants. Of this amount, $32.8 million is for the Water Pollution Control Revolving Fund, and $6 million is for the Drinking Water Revolving Fund. The required state match for the Water Pollution Control Revolving Fund is $1 state match for every $1 in federal grant money; and for the Drinking Water Revolving Fund, $1 state match for every $5 in federal grant money. • North Minneapolis WorkForce Center Repair: The Governor recommends $600,000 in GO bonding to repair the North Minneapolis WorkForce Center. The money will be used for water and mold remediation. The Department’s original request was for $1.994 million.

Housing Finance Agency - $25 Million: • Permanent Supportive Housing: The Governor recommends $25 million in GO bonding for permanent supportive housing loans. The funds will be used to construct, acquire and rehabilitate permanent supportive housing units for families with children and individuals who are either experiencing homelessness or are at risk of becoming long-term homeless.

Economic Opportunity, Page 21 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

The funds will be made available statewide through a competitive grant process. MHFA’s request was for $33 million. • Not Recommended: $5 million for Land Acquisition Revolving Loans requested by MHFA.

Historical Society - $6.672 Million: • Historic Sites Asset Preservation: The Governor recommends $4 million in GO bonding for asset preservation and facility repair at multiple locations within the Society’s Historic Sites Network. The Historical Society request was for $5.491 million, and included 13 priority asset preservation projects. The Governor gave no suggestions as to which projects will not be funded with his lower bonding dollars recommendation.

• Historic Fort Snelling Museum and Revitalization: The Governor recommends $1.1 million in GO bonding for design work connected to the Historical Society’s plan to revitalize Historic Fort Snelling. The Society’s request was for $22.649 million. The Governor recommends the $21.549 million difference in his 2008 planning estimates.

• Sesquicentennial Commemoration and Local Historic Preservation Grants: The Governor recommends $1 million in GO bonding for Sesquicentennial Commemoration and Local Historic Preservation Grants. The Society requested $2.5 million.

• History Center Visitor Services Upgrades: The Governor recommends $572,000, the Society’s requested amount, in GO bonding for History Center visitor services upgrades. The planned upgrades include: security enhancements, remodeling the Library Reading Room, and lighting system upgrades.

• Not Recommended but requested by MHS: o $550,000 for State Capitol Visitor Services & Furnishings o $300,000 for Kelly Farm Revitalization o $685,000 for Heritage Trails

Grants to Political Subdivisions - $13 Million: Sixty-seven political subdivisions submitted bonding requests (note: several political subdivisions requested multiple projects) for possible inclusion in the Governor’s bonding recommendations. The total dollar amount of the requests was $576.4 million.

Of the requests from political subdivisions, the Governor is recommending that four political subdivision bonding projects be funded by the Legislature. The four projects total $13 million: • City of Bemidji: $3 million for the for the predesign, design and site development of a Regional Events Center. The Center will also be home to the Bemidji State University hockey program. • Itasca County: $7 million for predesign and design of public infrastructure at a shared location for a proposed power plant project, and a steel mill project. Funding is contingent upon one or both projects having a final commitment for development. The County’s

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original request was for separate power plant and steel mill infrastructure projects totaling $56.62 million. • Koochiching County: $1 million for a Renewable Energy Clean Air Project. The funding would support predesign, design and site preparation activities. The County’s request was for $10 million. • City of St. Cloud: $2 million for the for the Regional Airport’s land acquisition project.

As discussed under the Department of Employment & Economic Development above, the Governor is also recommending the City of Rochester’s $8 million request for the Rochester Bioscience Development Center.

Implications It is expected that many Agency and Political Subdivision bonding projects not recommended for funding by the Governor will be introduced as separate bills in the 2006 Session. Many of these bills will be referred to the Jobs and Economic Opportunity Policy & Finance Committee for consideration.

Economic Opportunity, Page 23

State Government

The Governor's recommendations for capital projects in the State Government area total $30.3 million. Of this amount, $19.5 million is from general obligation bonds, $530,000 is from the General Fund, $10.2 million is from the Trunk Highway bonds, and $150,000 is from the parking account in the Special Revenue Fund.

Department of Administration (Admin) The Governor recommends $21.7 million in projects, with $10.9 million from general obligation bonds, $530,000 from the General Fund, $10.2 million from Trunk Highway bonds, and $150,000 is from the parking account in the Special Revenue Fund.

Department of Transportation (Mn-DOT) Exterior Repair The Governor recommends $10.2 million for repairs to the anchoring system of the exterior of the MN-DOT building on Constitution Avenue. The repairs are to be financed with Trunk Highway bonds.

Damage to the support system for the building’s exterior granite panels was discovered during tuckpointing of the building several years ago. Shelf angles and retaining clips have significant rust, reducing the load bearing capacity of the angles. If the support system fails, it is possible that a granite panel could fall from the building. Each panel weighs approximately 1200 pounds.

The Department originally requested funding for phase 1 of these repairs in the 2002 capital budget, but the project was not approved by the Legislature. At that time, the department was planning for 3 phases of funding, with a total cost of $14.8 million. In the 2004 session the department requested full funding for all 3 phases, at a reduced total cost of $8.9 million. Inflation has now increased the request for the full project to $10.2 million.

Since 1992, the state has spent over $44 million on repairs and renovation of the MN-DOT building, primarily for interior renovations, but also including funding for tuckpointing of the exterior.

Statewide CAPRA The Governor recommends $5 million in GO bond financing for the Capital Asset Preservation and Replacement Account (CAPRA).

CAPRA is a statewide fund for emergency repairs and unanticipated hazardous material abatement. The fund is administered by the Department of Administration on behalf of other state agencies. Since the program was started in 1990, a total of $75.9 million in both GO bonds and General Fund dollars has been appropriated for CAPRA projects.

The state has several different sources of funding for repair and maintenance, in addition to CAPRA (see table on the following page). CAPRA is now limited to emergency repairs. Known repair and maintenance needs are included in the asset preservation recommendations for several other state agencies (including Administration, as discussed below, and the Department of Military Affairs). In

State Government, Page 25 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

addition, Administration accumulates funds collected as rent to recover depreciation on buildings or construction projects funded through state bonds. These funds are deposited in a special revenue fund, and are available for asset preservation projects.

Sources of Funds Available for Maintenance & Repair of State Buildings How are Funds Requested? How are Funds Used? Projects are typically under $25,000. Operating Requested by each agency in its Usually used for the day-to-day operation budget. Funds maintenance projects. Central account managed by Admin CAPRA funds may be used for for use by state agencies. Request is emergencies, removal of life/safety CAPRA based on historical spending and hazards, containment of hazardous information from all state agencies substances, and unanticipated small regarding their facility needs repair and maintenance projects. Asset Requested by each agency in a Known repair and maintenance projects Preservation capital budget request costing between $25,000 and $300,000. Facilities Money collected by Administration Used only for asset preservation projects Repair & as rent to recover the depreciation on buildings from which money is Replacement costs of buildings under Admin’s collected. Account custodial control

Asset Preservation – Admin Properties The Governor recommends $6.2 million for asset preservation projects in the 21 properties managed by the Plant Management division of the Department of Administration. Priority projects include: • $1.9 million to replace the roof of the History Center in Saint Paul. • $500,000 to redesign and reconstruct the public entrance on the south side of the Capitol Building. • $500,000 to replace air handlers at the Centennial Office Building. • $2.42 million for renovation and asbestos abatement at the Administration building. This amount includes $330,000 from the General Fund for relocation costs. • $105,000 to upgrade the fire alarm system at the Governor’s Residence. • $500,000 to stabilize and repair the steps on the east side of the State Office Building. • $253,000 to upgrade and renovate the Revisor and freight elevators in the State Office Building. Each of these projects would have an impact on agency operating budgets, as the costs of the projects will be recovered through the lease rates charged to agencies.

Long Range Commuting Plan The Governor recommends $150,000 from the parking account in the Special Revenue fund to develop a long-term commuting strategy to help address the parking needs of the Capitol area. The parking account is funded through charges to state employees who park in the Capitol complex.

State Government, Page 26 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

Agency Relocation In addition to the $330,000 included in the asset preservation request, the Governor is recommending $200,000 from the General Fund for unanticipated agency relocation costs.

Capital Area Architectural Planning Board (CAAP Board) The CAAP Board had requested $26.4 million for Phase I of the interior renovation of the Capitol. The majority of this request ($20.3 million) is for full restoration of the east wing of the Capitol, including upgrades to the mechanical, electrical and life-safety systems. Plans for all 3 phases of the restoration currently total $83.3 million, including relocation costs.

The Governor did not recommend any funds in 2006 for this project. However, the narrative of the Governor's recommendation states that this is "to allow further discussion between the CAAPB and the affected Capitol tenants. Anticipating an agreement on relocation issues, the Governor’s planning estimates for 2008 include full funding of the project."

Department of Military Affairs The Governor recommends $8.6 million in GO bond financing for four projects:

Asset preservation $5.2 million for deferred maintenance projects at armories and training facilities. A 50 percent or 75 percent federal share, depending on the scope of the project, will match state funds.

The Department has requested and received funding for asset preservation projects in the last 6 capital cycles, through both direct appropriations and the CAPRA account. These requests have been based on detailed facilities audits, which document a maintenance backlog of over $28 million. Planning estimates for future asset preservation are $6 million in FY 2008, and $7 million in FY 2010.

Facility Life / Safety Repairs $1 million for required life/safety repairs at National Guard training facilities across the state. Examples of required repairs include the replacement of fire and smoke alarm systems. The federal government will match state funds with a 75 percent federal share of the total costs, or $3 million.

Indoor Firing Range Lead Abatement and Conversion $1 million for lead abatement and conversion of indoor firing ranges in ten National Guard Training Community Centers. These indoor ranges are considered unsafe, and the Department plans to clean and convert the ranges to storage, classrooms and offices.

Americans with Disabilities Act (ADA) Compliance $1.4 million for ADA alterations to existing National Guard armory and training centers throughout the state. The federal government will match state funds with a 75 percent share, or $4.2 million.

For additional information on State Government finance issues, contact Helen Roberts at 296-4117or [email protected]

State Government, Page 27

Transportation Finance

The Governor’s recommendations for transportation projects make up a significant portion of his overall 2006 capital budget. Of the twelve requested projects the governor chose to fund eight. Agency transportation requests totaled $226 million and the governor provided funding in his budget for $142 million in projects. Funding sources include general obligation bonds, and trunk highway bonds.

Two major public transit investments make up the majority of the transportation proposals. The completion phase of the Northstar Corridor Commuter Rail project and a new I-35 Bus Rapid Transit together total $68.3 million in proposed state investment. The Northstar Corridor would require $60 million dollars in GO bonds to complete state participation, in addition to the $40 million appropriated by the legislature last session. The Governor’s proposal would require a total of $43.8 million in local capital participation from the local regional rail authorities involved. The Department of Transportation hopes to secure a total of $142. million in federal dollars or roughly 50% of the total cost.

The project is unique in that general obligation bonds will be used to finance a project that will be on privately held property. Generally, the state can issue general obligation bonds for capital improvements that are publicly owned and provide for a public purpose. Article XI sec. 5 of the Constitution of the State of Minnesota provides certain exceptions to this rule. One such exception states that bonds may be used, “to improve and rehabilitate railroad rights-of-way and other rail facilities whether public or private, provided that bonds issued and unpaid shall not exceed $200,000,000 par value.”

The I-35 Busway will provide bus rapid transit along I-35W south of Minneapolis into Lakeville. The project is planned to relieve traffic along one of the metro areas most congested corridors. The corridor currently carries 15,000 transit passengers per day.

The governor also recommends $30 million for the Local Bridge Matching Funds program. The program provides assistance to local governments at replacing expensive aging and deficient bridges throughout the state. The money in the program leverages four dollars of federal money for every state dollar invested.

Transportation related recommendations include;

Metropolitan Council

• $5 million to the Met Council for Cedar Avenue Bus Rapid Transit. The dollars would be used for additional engineering studies and immediate transit improvements. • $8.3 million for I-35 Bus Rapid Transit • $2.5 million for the Central Corridor Transitway

Transportation, Page 29 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

Department of Transportation

• $30 million for local bridge matching funds to move bridge projects forward throughout the state. • $18.2 million in Trunk Highway Bonds for replacement of the Mankato district headquarters building. (up from $16.6 in 2005) • $10 million for local road improvement grants to improve local route of regional significance where local communities have difficulty funding a crucial improvement to a regionally important route. • $60 million to complete state funding for the Northstar Corridor commuter rail project. • $10.1 million (through the Department of Administration) for repair of the MN/DOT building exterior on the Capitol mall. $650 thousand was added to this project for inflationary costs. (up from $9.3 in 2005) • $6.9 million for a new truck station in Chaska.

Implications

The Governor’s recommendation shows an increasing emphasis on transit projects in the metro area.. The governor recommends funding for four separate transit projects that total $75.8 million, slightly more than half of his total transportation recommendations. The largest of the requests, $60 million for the Northstar Corridor, would complete funding for a project that has already received a major appropriation from the legislature last session.

The Department of Administration lists repair of the MN/DOT building façade as its top priority for this capital budget cycle. Due to deterioration of metal supports behind the façade, the granite panels have begun to break loose and could fall from the building. Administration feels it is an important safety issue and must be repaired immediately. The request would be funded from trunk highway bonds.

The Mankato headquarters building has been a MN/DOT request since the 2002 capital budget cycle. The original request was for $14 million to build a new facility in 2002. In the current request, the cost has risen to $18.2 million over the last four years.

For further information on Transportation related issues contact John Walz at 296-8236 or [email protected]

Transportation, Page 30

AGENCY Request Governor Project Title Priority Fund 2006 2006

UNIVERSITY of MINNESOTA HEAPR 1 GO $ 80,000 $ 40,000 Carlson School of Management Expansion 2 GO $ 26,600 $ 26,600 Labovitz School of Business 3 GO $ 15,333 $ 15,333 Science Teaching and Student Services 4 GO $ 41,334 $ 41,334 Medical Research Building Phase 1 5 GO $ 40,000 $ 4,346 Regional Centers and Stations 6 GO $ 2,800 $ - American Indian Learning Resource Center GO $ - $ - Bio-System Ag Engineering School GO $ - $ - Total $ 206,067 $ 127,613 GO $ 206,067 $ 127,613 1/3 UF $ - $ -

MN STATE COLLEGES & UNIVERSITIES HEAPR 1 GO $ 110,000 $ 20,000 MSU Mankato New Science Trafton Addition 2 1/3 UF $ 32,900 $ 32,900 St Cloud State Math and Science Addition 3 1/3 UF $ 14,000 $ 14,000 Century CTC New Science/Library Building 4 1/3 UF $ 19,900 $ 19,900 Fon du Lac TCC Library Addition and Cultural CTR 5 1/3 UF $ 12,390 $ - MSU Moorhead MacLean Renovation 6 1/3 UF $ 9,680 $ - Minneapolis CTC Science and Health Renovation 7 1/3 UF $ 18,874 $ 18,874 St Paul Transportation and Applied Tech Lab 8 1/3 UF $ 3,000 $ 3,000 Bemidji SU Sattgast Science Addition 9 1/3 UF $ 700 $ 700 MSC SETC Red Wing Student Services, LRC 10 1/3 UF $ 4,855 $ 4,855 Normandale CC Classroom Renovation 11 1/3 UF $ 5,125 $ 5,125 Inver Hills Classrooms 12 1/3 UF $ 700 $ - St Cloud State Riverview Hall 13 1/3 UF $ 4,500 $ - Winona State Maxwell Hall 14 1/3 UF $ 11,186 $ 11,186 Systemwide Science Lab and Workforce Initiatives 15 1/3 UF $ 5,140 $ 5,140 Systemwide Demolition 16 1/3 UF $ 1,660 $ - Systemwide Property Acq 17 1/3 UF $ 11,440 $ 6,850 North Hennepin Business and Tech Addition 18 1/3 UF $ 700 $ - Northland CTC Nursing and Library E Grand Forks 19 1/3 UF $ 600 $ - MSU Moorhead Lommen Hall Addition and Renovation 20 1/3 UF $ 600 $ - Lake Superior CTC Health and Science Center 21 1/3 UF $ 840 $ - Metropolitan SU Smart Classroom Center 22 1/3 UF $ 4,880 $ - Alexandria TC Law Enforcement Ctr 23 1/3 UF $ 840 $ - Metro MCTC Co-Located Law Enforcement CTR 24 1/3 UF $ 700 $ - NHED Mesabi Eveleth Industrial Shop 25 1/3 UF $ 4,300 $ - Southwest MSU Science & HRI Lab 26 1/3 UF $ 500 $ - Winona SU Memorial Hall Expansion 27 GO $ 400 $ - Total $ 280,410 $ 142,530 GO $ 223,663 $ 101,732 1/3 UF $ 56,747 $ 40,798

PERPICH CENTER FOR ARTS EDUCATION Asset Preservation 1 GO $ 1,051 $ 1,051 Total $ 1,051 $ 1,051

Spreadsheet, Page 31 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006

DEPT. of EDUCATION Nett Lake Facility Construction 1 GO $ 10,698 $ - Red Lake Facility Construction 2 GO $ 55,383 $ 10,000 Grant School Collaborative 3 GO $ 1,634 $ - Library Improvement Grants 4 GO $ 2,000 $ - Total $ 69,715 $ 10,000

MINNESOTA STATE ACADEMIES Asset Preservation 1 GO $ 4,509 $ 2,509 MSAD Frechette Renovation 2 GO $ 5,557 $ 5,557 Roads and Parking 3 GO $ 1,525 $ - Total $ 11,591 $ 8,066

DEPARTMENT of NATURAL RESOURCES Flood Hazard Mitigation Grants 1 GO $ 12,000 $ 9,000 Dam Repair 2 GO $ 2,000 $ 2,000 Sesquicentennial Conservation Initiative 3 Wildlife Area Acquisition and Improvement GO $ 20,000 $ 15,000 Large Scale Forest Conservation Easements GO $ 10,000 $ 10,000 State Park Infrastructure Rehab GO $ 10,000 $ 3,000 State Park Building Rehab GO $ 10,000 $ 3,000 Fisheries Acquisition and Improvement GO $ 6,000 $ 4,000 State Land Reforestation GO $ 6,000 $ 4,000 State Forest Land Acquisition GO $ 6,000 $ 4,000 State Park and Rec Area Acquisition GO $ 6,000 $ 2,000 SNA Acquisition and Development GO $ 5,000 $ 3,000 Water Access and Fishing Piers GO $ 5,000 $ 3,000 State Trail Acquisition GO $ 5,000 $ 2,000 Lake Superior Safe Harbors GO $ 3,000 Stream Protection GO $ 2,000 $ 2,000 Local Community Grants GO $ 2,000 $ - Native Prairie Bank Easements GO $ 1,000 $ 1,000 Waterfowl Habitat GO $ 1,000 $ 1,000 Fish Hatchery Improvements GO $ 1,000 $ 1,000 Metro Greenways GO $ 1,000 Statewide Asset Preservation 4 GO $ 3,000 $ 2,000 Buying Out Trust Fund Lands 5 GO $ 5,000 $ 1,000 Forest Roads and Bridges 6 GO $ 2,000 $ - Field Office Consolidation 7 GO $ 3,000 $ - Off Road Vehicle Rec Area 8 UF $ 1,500 $ 1,500 State Park Camper Cabins 9 UF $ 2,000 $ 2,000 Total $ 130,500 $ 75,500 GO $ 127,000 $ 72,000 UF $ 3,500 $ 3,500

Spreadsheet, Page 32 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006

POLLUTION CONTROL AGENCY Closed Landfill Bonding 1 GO $ 33,500 $ 7,150 Capital Assistance Program 2 GO $ 42,200 $ 4,000 Total $ 75,700 $ 11,150

WATER and SOIL RESOURCES BOARD RIM Reserve and CREP II 1 GF $ 4,750 $ 4,750 RIM Reserve and CREP II 1 GO $ 25,400 $ 25,400 Local Government Road Wetland Replacement 2 GF $ 700 $ 700 Local Government Road Wetland Replacement 2 GO $ 3,500 $ 3,500 Streambank, Lakeshore Erosion Control 3 GF $ 260 $ - Streambank, Lakeshore Erosion Control 3 GO $ 5,000 Study Area II 4 GO $ 500 $ - Army Compatible Use Buffer 5 GO $ 500 $ - Grass Lake 6 GO $ 2,200 $ - Total $ 42,810 $ 34,350 GF $ 5,710 $ 5,450 GO $ 37,100 $ 28,900

DEPARTMENT of AGRICULTURE Joint Bio-Safety Lab 1 GO $ 1,500 $ 1,500 Municipal Reforestation 2 GO $ 20,000 $ - Total $ 21,500 $ 1,500 UF $ - $ - GO $ 21,500 $ 1,500

MINNESOTA ZOOLOGICAL GARDENS Asset Preservation 1 GO $ 10,000 $ 8,000 Zoo Master Plan/ New Exhibit 2 GO $ 16,000 $ 13,000 Total $ 26,000 $ 21,000

ADMINISTRATION DOT Exterior 1 THB $ 10,161 $ 10,161 Statewide CAPRA 2 GO $ 5,000 $ 5,000 Asset Preservation 3 GF $ 330 $ 330 Asset Preservation 3 GO $ 5,862 $ 5,862 Long Range Commuting Plan 4 SR $ 150 $ 150 Lease Savings Opportunities 5 GF $ 420 $ - Lease Savings Opportunities 5 GO $ 4,642 $ - Agency Relocation 6 GF $ 500 $ 200 New State Office Building Predesign and Design 7 GO $ 3,000 $ - Stassen Freeman Tunnel 8 GO $ 2,482 $ - Total $ 32,547 $ 21,703 GF $ 1,250 $ 530 SR $ 150 $ 150 THB $ 10,161 $ 10,161

Spreadsheet, Page 33 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006 GO $ 20,986 $ 10,862

CAAP BOARD Capitol Building Restoration Phase I 1 GO $ 23,485 $ - 1 GF $ 2,916 $ - Total $ 23,485 $ - GO $ 20,569 $ - GF $ 2,916 $ -

MILITARY AFFAIRS Asset Preservation 1 GO $ 5,200 $ 5,200 Facility Life Safety 2 GO $ 1,000 $ 1,000 Range Lead Abatement 3 GO $ 1,029 $ 1,029 Facility ADA Requirements 4 GO $ 1,400 $ 1,400 Total $ 8,629 $ 8,629

DEPARTMENT of TRANSPORTATION Mankato Headquarters 1 THB $ 18,228 $ 18,228 Northstar Commuter Rail 2 GO $ 60,000 $ 60,000 Local Bridge Replacement 3 GO $ 70,000 $ 30,000 Local Road Improvement Grants 4 GO $ 20,000 $ 10,000 Chaska Truck Station 5 THB $ 6,949 $ 6,949 Arden Hills Training Center Addition 6 THB $ 4,507 $ - Maple Grove/Osseo Truck Station 7 THB $ 11,677 $ - MN Rail Service Improvement 8 GO $ 6,000 $ - Port Development 9 GO $ 6,000 $ - Total $ 203,361 $ 125,177 GO $ 162,000 $ 100,000 THB $ 41,361 $ 25,177

METROPOLITAN COUNCIL I-35 BRT 1 GO $ 8,300 $ 8,300 Central Corridor 2 GO $ 10,000 $ 2,500 Cedar Avenue Busway 3 GO $ 5,000 $ 5,000 Metro Regional Parks 4 GO $ 11,000 $ 11,700 Total $ 34,300 $ 27,500

DEPARTMENT of HUMAN SERVICES MSOP Expansion Phase I 1 GO $ 44,580 $ 44,580 MSOP Expansion Design Phase II 2 GO $ 3,200 $ 3,200 Systemwide Redevelopment 3 GO $ 7,000 $ 7,000 St Peter New Program Building 4 GO $ 2,500 $ 2,500 Systemwide Campus Security 5 GO $ 2,500 $ 2,500 Systemwide Roof Repair 6 GO $ 1,500 $ 1,500 Systemwide Asset Preservation 7 GO $ 4,000 $ 4,000 Total $ 65,280 $ 65,280

Spreadsheet, Page 34 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006

DEPARTMENT of HEALTH Mpls/St Paul Interconnection GO $ 10,000 $ - Total $ 10,000 $ -

VETERAN'S HOME BOARD Asset Preservation 1 GO $ 10,005 $ 6,000 Minneapolis Emergency Power 2 GO $ 2,457 $ 2,457 Minneapolis Adult Day Care 3 GO $ 2,261 $ - Silver Bay Master Plan 4 GO $ 4,851 $ - Luverne Dementia Wander Area 5 GO $ 599 $ 599 Minneapolis Kitchen Renovation 6 GO $ 5,331 $ 5,331 Fergus Falls Special Care Unit 7 GO $ 7,699 $ 637 Minneapolis Phase II Assisted Living 8 GO $ 20,104 $ - Hastings Supportive Housing 9 GO $ 6,953 $ - Minneapolis Phase III Skilled Nursing Development 10 GO $ 175 $ - Total $ 60,435 $ 15,024

DEPARTMENT OF CORRECTIONS MCF Faribault Expansion Phase II 1 GO $ 27,993 $ 27,993 MCF Stillwater 150 Bed Segregation Unit 2 GO $ 19,580 $ 19,580 MCF Shakopee Expansion 3 GO $ 5,375 $ 5,375 MCF Shakopee Security Fence 4 GO $ 5,899 $ 4,922 MCF Lino Lakes Medical 5 GO $ 2,494 $ 2,494 DOC Asset Preservation 6 GO $ 20,000 $ 10,000 MCF Red Wing Education Building 7 GO $ 6,230 $ - Total $ 87,571 $ 70,364

EMPLOYMENT and ECONOMIC DEVEL. Redevelopment Grants 1 GO $ 20,000 $ 13,000 Bioscience Business Development Grants 2 GO $ 10,000 $ 10,000 Greater MN Business Development 3 GO $ 15,000 $ 7,500 Wastewater Infrastructure Fund WIF 4 GO $ 15,000 $ 15,000 Wastewater Infrastructure Fund WIF 4 GF $ 300 $ 300 US EPA Drinking Water/Wastewater 5 GO $ 38,800 $ 38,800 North Minneapolis WFC Repair 6 GO $ 1,994 $ 600 Total $ 101,094 $ 85,200 GF $ 300 $ 300 GO $ 100,794 $ 84,900

HOUSING FINANCE AGENCY Permanent Supportive Housing Loans 1 GO $ 33,000 $ 25,000 Land Acquisition Revolving Loans 2 GO $ 5,000 $ - Total $ 38,000 $ 25,000

Spreadsheet, Page 35 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006

MINNESOTA HISTORICAL SOCIETY Historic Sites Asset Preservation 1 GO $ 5,491 $ 4,000 Fort Snelling Revitalization 2 GO $ 22,649 $ 1,100 Sesquicentennial County and Local Asset Preservation 3 GO $ 2,500 $ 1,000 History Center Upgrades 4 GO $ 572 $ 572 State Capitol Visitor Center Services and Furnishings 5 GF $ 550 $ - Kelly Farm Revitalization 6 GO $ 300 $ - Heritage Trails 7 GO $ 685 $ - Total $ 32,747 $ 6,672 GF $ 550 $ - GO $ 32,197 $ 6,672

GRANTS to POLITICAL SUBDIVISIONS Albert Lea Storm Sewer GO $ 542 Albert Lea Edgewater Park GO $ 917 Albert Lea Katherine Island GO $ 142 Agassiz Regional Trail GO $ 648 Aitkin County Great River Road GO $ 1,750 Aitkin County Marcum House GO $ 500 Bemidji Paul Bunyan Trail GO $ 500 Bemidji Regional Events Center GO $ 3,000 $ 3,000 Burnsville Water Treatment GO $ 3,000 Carlton Water Tower GO $ 250 Carlton County St Louis River Trail GO $ 500 Central Iron Range Sanitary Sewer South Plant GO $ 20,000 Central Minnesota Regional Parks and Trails GO $ 2,860 City of Cottage Grove THWY 61 Vista Enhancement GO $ 1,000 Coleraine CSAH 61 Powell Ave Improvements GO $ 515 Dakota County Public Safety Center GO $ 13,860 Dakota County Empire Wetlands Wildlife Area GO $ 7,000 Dakota County Affordable Assisted Living GO $ 3,100 Dakota County Regional Travel Demand Study GO $ 200 Dakota County "From Brown to Green" GO $ 1,100 Dakota County Dam Safety Grant GO $ 500 Dakota County Cedar Ave Transitway GO $ 5,000 Dayton Land Acquisition GO $ 1,600 Detroit Lakes Multi Use Trail GO $ 4,620 Duluth Skyline Parkway GO $ 500 Duluth Bayfront Water Access GO $ 325 Duluth Native American Heritage Predesign GO $ 100 Duluth Lake Superior Zoo GO $ 200 Duluth DECC Hockey Arena GO $ 33,736 East Range Sanitary Sewer GO $ 350 Ely Joint Public Works Facility GO $ 1,400 Faribault Highway 60 GO $ 1,800

Spreadsheet, Page 36 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006 Faribault City Water Project GO $ 600 Faribault National Guard Armory GO $ 750 Faribault Mill Towns Trail GO $ 4,500 Fridley Springbrook Nature Center GO $ 2,500 Gonvick Emergency Training Center GO $ 2,000 Grand Rapids Fire Hall GO $ 1,111 Grand Rapids EDA Research and Tech Lab GO $ 3,000 Hennepin County Lowry Ave Corridor GO $ 5,000 Hennepin County Lowry Ave Bridge GO $ 24,300 Hennepin County Center for Changing Lives GO $ 8,301 Inver Grove Heights Heritage Village GO $ 4,620 Itasca County Power Plant Infrastructure GO $ 52,000 Itasca County Steel Mill DRI GO $ 10,000 $ 7,000 Koochiching County Clean Energy Facility GO $ 348 $ 1,000 Lake County TH 61 GO $ 223 Lake County Bike Trail GO $ 3,137 Lake County Trunk Highway Project GO $ 2,416 Lewis and Clark Water System GO $ 700 Glencoe Railroad Congestion Mitigation GO $ 600 Midway Township Sanitary Sewer GO $ 259 Mille Lacs County Recreational Trail Bridge GO $ 101 Morrison County Soo Line Park and Ride GO $ 15,000 Mpls Shubert Theater GO $ 6,000 Mpls Heritage Park GO $ 6,450 Mpls University Research Park GO $ 250 Mpls Grand Rounds Missing Link GO $ 5,000 Mpls Lake of the Isles GO $ 1,000 Mpls Grand Rounds Parkway Lighting GO $ 1,800 Mpls Cedar Lake Trail GO $ 71,000 Mpls Target Center Debt Relief GO $ 4,000 MN Valley Railroad Rehab Phase IV GO $ 500 MT Iron Renewable Energy Park GO $ 1,500 Osseo School District Family Service Center GO $ 199 Palisade Wastewater Treatment GO $ 50,000 Ramsey County Central Corridor (also met council req) GO $ 12,500 Ramsey County Union Depot GO $ 7,500 Ramsey County Rush Line Corridor GO $ 321 Ramsey County Lower Afton Trail GO $ 400 Red Wing Community Arts Center GO $ 550 Richfield Recreation Areas GO $ 4,632 Richfield 17th Ave Airport Mitigation GO $ 3,966 Richmond Water Treatment GO $ 1,771 Rochester Public Safety Center GO $ 8,000 Rochester Bioscience Development GO $ 3,500 Rochester Volleyball Center GO $ 960 Roseville Skating Oval GO $ 4,220 Scott County Public Safety Training facility GO $ 4,500

Spreadsheet, Page 37 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006 Shell Rock Watershed GO $ 790 South St Paul Port Crosby Landfill GO $ 4,500 Southwest Regional Event Center GO $ 12,774 Silver Bay Abandoned Apartment Complex GO $ 170 St Cloud Civic Center Expansion GO $ 10,000 St Cloud Airport Land Acq GO $ 2,000 $ 2,000 St Cloud River Bluffs Park GO $ 2,200 St Louis County Mesabi Trail GO $ 2,310 St Louis County Mesabi Coal Energy Project GO $ 2,575 St Louis County Northeastern Rail Initiative GO $ 950 St Louis Park Wooddale Intersection GO $ 1,000 St Michael Road Improvements GO $ 2,605 ST Paul Bioscience Corridor GO $ 3,700 St Paul Como Zoo Gorillas/Polar Bear GO $ 10,000 St Paul Ordway GO $ 12,000 St Paul Pierce Butler GO $ 10,000 St Paul Great River Park GO $ 12,050 Thomson Industrial Park GO $ 400 Three Rivers Park Silver Lake GO $ 2,250 THWY 53 Relocation EIS GO $ 500 Virginia Medical Helipad GO $ 750 Washington County Red Rock Corridor GO $ 1,000 Western Mesabi Canisteo Mine GO $ 2,783 White Road and Trail Project GO $ 400 Wild Rice Watershed Projects GO $ 4,920 Willmar Wastewater Treatment GO $ 4,000 Winona Shakespearean Festival Economic Study GO $ 250 Wrenshall Water Tower GO $ 150 Wright Regional Park Acquisition GO $ 6,000 Total $ 556,028 $ 13,000

FINANCE Bond Sale Expenses GO $ 854 $ 854 THB Sale Expense THB $ 32 $ 32 Total $ 886 $ 886

TOTALS Total $ 2,119,707 $ 897,195 GO $ 1,997,030 $ 811,097 GF $ 10,726 $ 6,280 UF $ 60,247 $ 44,298 SR $ 150 $ 150 THB $ 51,554 $ 35,370

Net GO Bonding New Spending $ 1,997,030 $ 811,097 Cancellations $ - $ -

Spreadsheet, Page 38 Governor’s 2006 Capital Budget House Fiscal Analysis, February 2006

AGENCY Request Governor Project Title Priority Fund 2006 2006 Net GO Bonding $ 1,997,030 $ 811,097

Spreadsheet, Page 39

House Fiscal Analysis Department Staff Assignments 2006 Session

Committee/Division Fiscal Analyst Telephone Room

Agriculture, Envrt & Nat Resources Finance Jim Reinholdz 296-4281 320

Capital Investment John Walz 296-8236 376

Health Finance Marie Zimmerman 296-7171 328

Higher Education Finance Doug Berg 296-5346 372

Jobs & Economic Opportunity Finance Ron Soderberg 296-4162 322

K-12 Education Finance Greg Crowe 296-7165 378

Public Safety Finance Gary Karger 296-4181 330

State Government Finance Helen Roberts 296-4117 370

Taxes (Income & Sales) Cynthia Templin 297-8405 326 (Property and Local Aids) Katherine Schill 296-5384 325

Transportation Finance John Walz 296-8236 376

Ways & Means Bill Marx 296-7176 373

All fiscal staff offices are located in the State Office Building.

All fiscal staff e-mail addresses are similar. Substitute the name of the person you want to reach in the following address: [email protected]

The House Fiscal Analysis Department home page on the web is at: http://www.house.mn/fiscal/fahome.ssi

The web page has fiscal staff publications from recent years as well as spreadsheets for the major finance bills for the past eight years.