DFL pushes for $1 billion bonding cap

DFL pushes for $1 billion bonding cap

There are 11 comments on the TwinCities.com story from Feb 21, 2010, titled DFL pushes for $1 billion bonding cap. In it, TwinCities.com reports that:

Minnesota House and Senate negotiators worked late into Sunday night trying to craft a compromise $1billion public works bill that both houses could vote on today.

Join the discussion below, or Read more at TwinCities.com.

Since: Apr 08

Black River Falls, WI

#1 Feb 22, 2010
How about NO bonding bill. The deficit in the state should be job one, not adding more money to the credit card.

And people wonder why the state can't be trusted with money.
Jim

Minneapolis, MN

#2 Feb 22, 2010
How about no bonding bill and maybe some of you keep your jobs in November?
Observer

Minneapolis, MN

#3 Feb 22, 2010
LGA Larry

Minneapolis, MN

#4 Feb 22, 2010
As you would expect, the bill is a $1 billion collection of ear marks, pork, and goodies for the DFL’s favorite constituencies.

Let’s revisit both the reasons why a debt-financed bill isn’t a good idea and the specific pork larded into the DFL versions of their respective bills.

First, the DFL makes the incredible claim that the bonding bill will “stimulate” the economy and put people to work. Please.

How has the Democrat stimulus bill out of the federal government worked out?
We remember when it was claimed that the stimulus bill would keep unemployment below 8%. The White House celebrated this week when unemployment dropped to 9.7%. Wow.

The DFL doesn’t understand that government spending doesn’t create jobs. The government merely takes money out of the private economy and re-circulates it far more inefficiently than the markets ever would. Government money can temporarily put one man to work digging a hole and another to fill it, but it can’t create a sustainable job.

Moreover, the DFL keeps braying on about low interest rates as a justification to enact a monstrous,$1 billion bonding bill. Cheap money isn’t free money.
The state is facing an immediate $1.2 billion deficit and a $5 billion deficit in the
next fiscal biennium. When you’re flat broke, even cheap money is out of reach.

Third, the bonding bill is financed by debt. It’s financed by the state
selling debt on the open market just like Washington does. Haven’t we had enough of
this credit-card mentality? Our children and grand children are handcuffed to a
mountain of Chinese financed debt and we just keep digging and digging. Enough is
enough.

Finally, this may be a technical point but it has significant bearing on the
question of “shovel ready” projects. The DFL crows about the need for an early
bonding bill to put people to work. Putting aside all other arguments for a moment, it is
impossible to get projects out the door that quickly.

Remember that a bonding bill doesn’t mean the state loads up a bag of money
and walks out the door to hand it out. Bonds are financial instruments that are
sold in the financial marketplace. They contracts, they are legal documents, and
they are complex. In order to protect the state and ensure a smooth sale, a
complex “due diligence” process is required to satisfy both the state and the marketplace that the bonds are what they purport to be. That process takes many weeks and means that even a bonding bill passed in February or March wouldn’t be ready for market until early summer.

So what kind of “critical” projects are included in the DFL proposals?---

American Indian Learning Resource Center ($6.7 million)

· Bike and hiking trails ($39 million)

· Minnesota Zoo ($32.5 million)

· Rochester volleyball center ($4 million)

· Springbrook Nature Center ($2 million)

· Wirth Park Winter Recreation ($1 million)

· Minneapolis Sculpture Garden ($2 million)

· Dakota County bicycle tunnel ($344,000)

· Old Cedar Avenue bicycle bridge ($2 million)

· Rock Island Park trail development ($1 million)

· Potter Center for the Arts ($7 million)

· African-American Cultural Center ($840,000)

· Mankato Civic Center ($14 million)

· Orchestra Hall ($17 million)

· Rochester Civic Center ($28 million)

· Saint Cloud Civic Center ($15 million)

· Ordway Center ($16 million)

· Asian-Pacific Cultural Center ($7 million)

· Oliver Kelly historic farm ($10 million)

· Moorehead sports complex ($4 million)

· Ice arenas ($2 million)

· Midtown Famers’ Market ($500,000)

· Como Zoo ($11 million)

· Chatfield Arts Center ($2.2 million)

· Arrowhead Sports Complex ($3 million)

· Saint Paul Saints stadium design ($250,000)

The DFL claims they understand the seriousness of the budget crisis. They’re actions suggest otherwise.


LGA Larry

Minneapolis, MN

#5 Feb 22, 2010
As you would expect, the bill is a $1 billion collection of ear marks, pork, and goodies for the DFL’s favorite constituencies.

Let’s revisit both the reasons why a debt-financed bill isn’t a good idea and the specific pork larded into the DFL versions of their respective bills.

First, the DFL makes the incredible claim that the bonding bill will “stimulate” the economy and put people to work. Please.

How has the Democrat stimulus bill out of the federal government worked out?
We remember when it was claimed that the stimulus bill would keep unemployment below 8%. The White House celebrated this week when unemployment dropped to 9.7%. Wow.

The DFL doesn’t understand that government spending doesn’t create jobs. The government merely takes money out of the private economy and re-circulates it far more inefficiently than the markets ever would. Government money can temporarily put one man to work digging a hole and another to fill it, but it can’t create a sustainable job.

Moreover, the DFL keeps braying on about low interest rates as a justification to enact a monstrous,$1 billion bonding bill. Cheap money isn’t free money.
The state is facing an immediate $1.2 billion deficit and a $5 billion deficit in the
next fiscal biennium. When you’re flat broke, even cheap money is out of reach.

Third, the bonding bill is financed by debt. It’s financed by the state
selling debt on the open market just like Washington does. Haven’t we had enough of
this credit-card mentality? Our children and grand children are handcuffed to a
mountain of Chinese financed debt and we just keep digging and digging. Enough is
enough.

Finally, this may be a technical point but it has significant bearing on the
question of “shovel ready” projects. The DFL crows about the need for an early
bonding bill to put people to work. Putting aside all other arguments for a moment, it is
impossible to get projects out the door that quickly.

Remember that a bonding bill doesn’t mean the state loads up a bag of money
and walks out the door to hand it out. Bonds are financial instruments that are
sold in the financial marketplace. They contracts, they are legal documents, and
they are complex. In order to protect the state and ensure a smooth sale, a
complex “due diligence” process is required to satisfy both the state and the marketplace that the bonds are what they purport to be. That process takes many weeks and means that even a bonding bill passed in February or March wouldn’t be ready for market until early summer.

So what kind of “critical” projects are included in the DFL proposals?---

American Indian Learning Resource Center ($6.7 million)

· Bike and hiking trails ($39 million)

· Minnesota Zoo ($32.5 million)

· Rochester volleyball center ($4 million)

· Springbrook Nature Center ($2 million)

· Wirth Park Winter Recreation ($1 million)

· Minneapolis Sculpture Garden ($2 million)

· Dakota County bicycle tunnel ($344,000)

· Old Cedar Avenue bicycle bridge ($2 million)

· Rock Island Park trail development ($1 million)

· Potter Center for the Arts ($7 million)

· African-American Cultural Center ($840,000)

· Mankato Civic Center ($14 million)

· Orchestra Hall ($17 million)

· Rochester Civic Center ($28 million)

· Saint Cloud Civic Center ($15 million)

· Ordway Center ($16 million)

· Asian-Pacific Cultural Center ($7 million)

· Oliver Kelly historic farm ($10 million)

· Moorehead sports complex ($4 million)

· Ice arenas ($2 million)

· Midtown Famers’ Market ($500,000)

· Como Zoo ($11 million)

· Chatfield Arts Center ($2.2 million)

· Arrowhead Sports Complex ($3 million)

· Saint Paul Saints stadium design ($250,000)

The DFL claims they understand the seriousness of the budget crisis. They’re actions suggest otherwise.



Old Timer

United States

#6 Feb 22, 2010
Don't blame the democrats! Their primary reason for being involved and getting elected is to provide more Porkulous, both on a national and state level. The folks here in Minnesota obviously relie on horse blinders to prevent them from observing the damage inflicted on the state, by these creeps. Remember the Government Workers Unions and the School Teachers Unions effectively control the agenda. There is a reason that the average government workers salary is $71,000/ per year, while the average private sector workers salary is $41,000./ year. Toss in all the gold plated benefits these creeps get and Viola, the budget is busted. Until the common folks get the kahunas to throw these bums out, things will never change. I figured it out about 15 years ago and dispite having all my roots here, I moved to a much more tax friendly state! What do I do with the extra $12,000 or so I save in taxes? As that famous Watergate burgler says on TV. I buy gold! We are all going to need it when the complete scenario go's bust, before 2013! For you few folks wanting to know what are tax friendly states:
Try, South Dakota, Tennessee, Texas, New Hampshire, and Florida
Danno

Minneapolis, MN

#7 Feb 22, 2010
This is stupid spending as outlined by other posts, including the pedophile bed/breakfast addition -$89 million for 400 beds ($222,500 per bed!)...that's enough for 400 new houses for each. A coffin is what,$2,000, a cardboard box maybe $5.

Since: Mar 09

Location hidden

#8 Feb 22, 2010
Funny you never hear about the sacred cow of higher education threatened with any cuts. They, like their k-12 biennium counterparts command almost 50% of the bonding. They haven't faced any type of layoffs.

Time to take the ivory towers down a level.
While we debate the merits of $70million in scraps for zoos and junk, Big Education walks away with $400-million-plus and zero expectation of any accountability.
Joe Merlot

United States

#9 Feb 22, 2010
Again, the Governor has resonable priorities and the DFL leaders are throwing money around like drunken sailors.

There's about 2 legislatrs safe (Poegmueller and Kehilor, simply because they serve the the two most brain washed and dumbed down districts in the state that would vote in Osama Bin Laden if he ran as a Democrat). I hope the rest follow the national trend and retire because if they keep up this garbage, they're gonna get thrown out anyway.

Seriously, Civic Centers vs Money to keep sex offenders off th street? Come on. They actually have the balls to justify their snub of funding beds for those civilly committed by saying that it's "unsustainable and too expensive". Now if that coming out of a DFL'ers flaphole isn't laughable, I don't what is. It may be a valid statement, however, a stop gap is needed while a more effective policy can be developed and it is a tricky issue. The Democrats solution? Spend the money on parks and civic centers and let the sex offenders out on the streets to prey on the public. Nice, good explaination there.
Error America

Saint Paul, MN

#11 Feb 22, 2010
Hey when was the last time you saw democrat and "cap" together in one sentence? Wow. I mean it's still a $1 Billion Dollars but what the hey they are showing some constraint. Again, it's other people's money that will have to pay it back. And the projects are for pork that will wouldn't necessarily ever get done otherwise. And you know, those jobs will be temporary when the job is done. So yes, let's spend another $1 Billion on more construction type jobs thereby giving more money to union workers. Those jobs are NOT meant for you and me or the average taxpayer, nope, they are jobs that go to union types. Sucks doesn't it? No wonder Texas is gaining residents while MN is losing them faster than we can pay more in taxes.
Oops There It Is

United States

#12 Mar 4, 2010
Everyone want to blame Timmy, look at facts...he is trying to gather some kind of control, tried to limit the pork, now hes the next anitchrist, these liberal papers and liberal goverments have forgotten what accountability is and they dont live in the real world, the one where you lose more than half your gross income to taxes fees and other assorted garbage, if they dont like it TAX IT, if they do like it TAX IT, if everyone paid there fair share and made these so called social programs more accountable we would have these problems, no more money for bikes trails civic centers and zoo until we can afford it, no more 2nd and 3rd generation welfare..get off you arses and start to contribute, these social programs were designed to be a temporary fix to help reintroduce individuals back into mainstreem society, now they are a way of life for a great many, the shame is they have a better stanard of living that many of us who do work and pays taxes, they have better healthcare , the state pays there housing, gives them food stamps( I went grocery shopping not to long ago, when I got to the check out the person in front of was unloading her cart, it was full of steak frsh fruit , expensive items, not the generic us poor working folks have to buy and paid for it with ebt, then joked about it), gives them cash, in many cases they drive expensive suv and cars, just look into the parking lots in subsidized housing, it will shock you. they can afford to smoke and drink, most have cable or satelite tv, why should they work. this budget could be fixed quickly by adding some accountability, if they want the bonding bill, then a trade off, those healthy couch potatoes living off the goverment dole should be the ones to get the jobs and if these refuse to work provide them with cardboard boxes, soup lines and a bridge to live under, when do we say enough is enough

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