AP and staff reports

ST.

Tuesday, February 19, 2002

ST. PAUL (AP) – The Senate voted Monday to borrow $1.2 billion – the maximum allowed by state rules – to build classrooms for colleges and universities, improve parks and build a new science laboratory. The Blazing Star Trail in Freeborn and Mower counties would get $750,000 for land acquisition in the bill, but money for Albert Lea’s business incubator and dams on Fountain and Albert Lea lakes was shut out.

The Shooting Star Trail, a Mower County project similar to the Blazing Star Trail, would get $450,000 under the bill, said Sen. Grace Schwab, R-Albert Lea.

The state would issue bonds to raise most of the money, but about $125 million would come from bonds issued by colleges or from gas taxes.

The 51-13 vote put an exclamation point on the Senate’s speedy pace this session. Last week, it passed a plan to repair a $2 billion hole in the state’s current budget.

Senate Majority Leader Roger Moe said the time is right to borrow money because interest rates are low. And he said aggressive capital spending would help the state’s sagging economy.

Bonding bills are one of the best opportunities for lawmakers to get money for local projects. This bill was no exception, as senators included in it dozens of small projects for their communities.

But Sen. Keith Langseth, head of the committee that developed the proposal, said that such small projects account for less than 1 percent, or $12 million, of the overall bonding bill.

Funding for the projects would need to be included in a House bonding bill, then must remain intact through conference committee, if it is to be finally approved.