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Location: Blogs Dan's Blog |
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| Posted by: Dan McGrath |
2/9/2010 |
 Bonding Bill Exceeds Debt Limit
The most pressing matter before the state legislature this year is closing a budget shortfall of over $5.4 billion, but that doesn’t seem to be the priority. Instead of reigning in spending, many legislators want to whip out the state’s credit card, but it’s already maxed out.
Our state legislature has historically held debt service to no more than 3% of general fund revenues. Last year the legislature voted to ignore that debt limit and borrow another $300 million, on top of the previous year’s nearly $1 billion bonding spending spree.
Minnesota is now in debt to the tune of $5,033,950,000, with another $2.3 billion authorized bonding that hasn’t been issued yet (but it will be), bringing our total debt to over $7 billion.
The payments and interest on that enormous debt add up to $452 million a year.
We’ve exceeded the 3% credit limit. In 2012, the debt service is projected to be nearly 4% of the general fund budget and still the legislature can’t put away the credit cards. Another bonding bill is set for a vote in the Senate as early as today. This time they want to borrow another $1.2 billion for such immediate necessities as:
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New and upgraded exhibits at the Minnesota Zoo - $21 million
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New trails, paving and connecting existing trails – over $31 million
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A new volleyball court in Rochester - $5 million
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A new women’s hockey center in Blaine - $1 million
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Four new ice rinks in Big Lake, Cokato, Fergus falls and New Hope - $2 million
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Regional amateur sports facilities in Marshall and Moorhead - $5 million
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Campground expansion in Two Harbors $1 million
Read the Entire Bonding Bill here
Do we really need to spend money on these amenities during an economic recession? Are new jogging and ATV trails a high priority when the state budget is in the red by billions of dollars and when 10% or more of the workforce can’t find employment?
They’re spending our money. They have an obligation to do so prudently.
Update: The Senate passed the bonding bill by a vote of 52-14.
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Comments (5)
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Re: State Blows By Credit Limit |
By Barb on
2/10/2010 |
| My God! What happened to the American mind? These minds are all conditioned on spending everybody ellses money without further thought! And they're running this state! This is despicable. Government creates temporary jobs. The time and money is not worth this idiotic, uneducated decision. Lift the mandates and bans and let good businesses prosper freely, without government intervention. |
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Re: State Blows By Credit Limit |
By Barb on
2/10/2010 |
Check out the timing of all these tax paid, government hired, short lived jobs all the states will have employed. Hmm. Right around election time! And maybe a few years longer. How much do these government jobs get paid?
Tax dollars going down that rat hole, so dishonesty and government take-over, continues to get the vote. Voters unknowing as well as knowing exacly what will happen. |
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Re: State Blows By Credit Limit |
By Deane on
2/15/2010 |
| I'm sick to death of taxes! It just has to stop! |
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Re: State Blows By Credit Limit |
By Paul Nelson on
2/15/2010 |
| Miss use of language and terminology. The characterization of " Are new jogging and ATV trails a high priority". Transportation is the issue. Many taxpayers do not have a car. Access to work, school, food and clothing, meeting with family and friends is largely accommodated by highway structures for walk, bike and handicapped mobility. Some of these are referred to as "trails". Transportation for individuals and business is the core priority, in concert with sustainable energy use, health and well being from exercise, and clean air. |
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Re: State Blows By Credit Limit |
By dan.mcgrath on
2/16/2010 |
| Paul - you either haven't read the bill or you are trying to mislead. The trails being built and refurbished are in outlaying areas and are recreational. I've yet to see people use ATV trails to drive their Polaris to work. How about the Perpich Center for the Arts, and new and upgraded exhibits at the Minnesota Zoo? I suppose they have a transportation purpose, too? $5 million for new Volleyball courts in Rochester? How will we get to work without volleyball nets? |
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