Senator Rarick Legislative Update: 2020 Bonding Bill  

(St. Paul, MN) – Last week Senate Republicans passed a government financing bill in the fifth special session of the year. After months of waiting, the House of Representatives finally sent over a bonding bill that, while imperfect, was the compromise we made to supply the need for increased jobs and an economic jolt. The financing bill included bonding, tax, and budget provisions for the entire state, including tax relief for small businesses and farmers, wastewater treatment renovations, and investment in safe roads and bridges. The area I represent, Senate District 11, is slated to receive capital investment funds for two correctional facilities, waste and water infrastructure, and the Pine Technical Community College. Unfortunately, essential projects like these don’t exactly outweigh the long list of “wants” provided by the House, meaning there will be negative repercussions in the future.

Supplemental spending in the bill specifically funds the Willow River and Togo CIP programs at $1.8 million and the Carlton County Regional Corrections Facility at $2 million. Correctional facilities in District 11 employ hundreds, and the loss of those programs would mean huge economic implications and family hardships for our area. Despite apprehensions I had about this bill’s size, deciding against saving those jobs simply was not an option for me.

Section 179 federal tax conformity was non-negotiable, as well. The new system lets farmers and small businesses deduct large equipment purchases, giving them more financial freedom to invest in their livelihoods. Thanks to that inclusion, the total tax relief for small businesses and farmers across the state is projected to be about $200 million.

Wastewater systems across the state are growing old or insufficient for their populations, which is why the largest funding portion for District 11 is allocated to the Twin Lakes Township water infrastructure project. Issues with wastewater are costly and can impact the health, safety, and expansion of a town, which is why this allocation was included in the final bill language. The township is slated to receive $7.5 million for the refurbishment of their systems, which will benefit the community for years to come.

In the spirit of preserving healthy communities and environments, $1.3 million has been allocated to upgrade the Brookston Area Landfill. The landfill was originally constructed without a lining and now the naturally occurring chemicals are mixing with groundwater at dangerous levels. The money will be used to install a new cover and passive gas system, which will prevent further mixing with groundwater. Again, a project that so obviously impacts the lives of surrounding residents is not something that should sit on the back burner, and I was happy to vote for its funding.

Finally, Pine Technical and Community College (PTCC) is set to receive $635 thousand to expand laboratories, offices, classrooms, and more. PTCC does wonderful work in our communities and provides a viable option for people who do not wish to attend a four-year college but want a fulfilling, well-paying career. As an electrician, I know how incredibly important it is that everyone, especially high school students, knows the value of a good trades education. The people who graduate from PTCC go on to fill the jobs created by future bonding projects in the state. PTCC’s renovations will lead to greater recruitment, even higher educational standards, and a fine facility to learn and work.

Though happy with the investments in Senate District 11 this year, I must stress that caution is the word for the upcoming year. The bill is too big with pet projects from the House that do little, if anything, to stimulate the economy. When the Legislature returns in a few short months to balance the state budget, this bill will have greatly increased the difficulty of that job. We have a large deficit caused by Covid-19 response, and it will take some time to build our state back to its pre-pandemic prosperity.

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