HF4856

Purpose

This bill authorizes a broad wave of capital investments using bond proceeds and onetime funds to acquire, upgrade, and build public land, buildings, and other capital assets. It also sets up new programs, updates existing programs, and modifies prior appropriations and related statutes. The goal is to improve state facilities, public infrastructure, natural resources assets, and programs across many state agencies and partners.

Key Provisions and Funding Overview

• Capital investment framework

  • Creates or funds a statewide capital improvement program using bond proceeds (and onetime general fund money in fiscal year 2027) to acquire and improve public land, buildings, and other capital assets.
  • Money may also be used to pay staff costs directly tied to capital projects according to accounting policies.
  • Appropriations are often one-time in the specified year, with certain funds and projects scoped to completion or abandonment as allowed by law.

• Education, universities, and libraries

  • Funds for the University of Minnesota, Minnesota State Colleges and Universities, and education-related library projects (including a Mary C. Murphy library project).
  • Includes asset preservation and capital improvements at education facilities.

• State agencies and capital projects

  • Minnesota State Academies, Perpich Center for Arts Education, and other state education-related entities receive capital funding for asset preservation, betterments, and predesign/design work for specific facilities (e.g., student center predesign, therapy pool improvements predesign).

• Natural resources and environment

  • Asset preservation for state facilities and improvements to public buildings used by natural resources agencies.
  • Acquisition and betterment of public lands, reforestation-related work, and wildfire aviation infrastructure upgrades at Brainerd Regional Airport.
  • Accessibility improvements at state parks and recreation areas; dam renovation/repair/removal; flood hazard mitigation; wetlands replacement and restoration; parks and trails grants.

• Water, soil, and resource management

  • Local Government Roads Wetland Replacement Program (wetland credits, land acquisitions, and restoration statewide).
  • Reinvest in Minnesota (RIM) Reserve Program to acquire conservation easements and protect wetlands, rivers, streams, and prairie/grasslands.
  • Emphasis on leveraging federal funds and restoration/enhancement activities, with some restoration-capable funding capped at a percentage.

• Transportation and infrastructure

  • High-priority pavement projects on trunk highways, with design/build options and alignment to the Minnesota State Highway Investment Plan.
  • Port development assistance; drainage asset management and storm/sewer infrastructure rehabilitation; space modernization in the Transportation Building.
  • Transportation Building consolidation and remodel project, with portions funded from trunk highway fund and general fund.

• Public safety, corrections, and military

  • BCA Bemidji Regional Facility upgrade; asset preservation in corrections facilities; Rush City Correctional Facility expansion and related hazardous materials abatement; facility consolidation planning for corrections.
  • Military Affairs project for a new Duluth hangar and asset preservation at readiness centers statewide.

• Veterans, health, and direct care

  • Asset preservation and capital projects at veterans homes (Minneapolis, Hastings, and other campuses), including renovations, demolition where needed, and site preparation.
  • Direct Care and Treatment facilities’ asset preservation; St. Peter water/sewer upgrades with hazardous materials abatement as needed.

• Culture, recreation, and community programs

  • Minnesota Zoo asset preservation and infrastructure improvements; Minnesota Amateur Sports Commission projects including the National Sports Center.
  • Grants to local units of government for amateur sports and related facilities.

• Local and regional implications

  • Metropolitan Council funding for regional parks/trails, open space, and related projects; inflow/infiltration grants to municipalities; and regional recreation lands improvements.

• Capitol security and facilities governance

  • Capitol Complex physical security upgrades Phase III, including security infrastructure, communications, surveillance, access controls, lighting, and other protective measures.
  • Capitol Building asset preservation and related high-security improvements; Centennial Office Building demolition and related site redevelopment activities; space efficiency/tenant relocation in the Transportation Building.

Notable Changes to Law

• Statutory updates and new codifications

  • The bill proposes codifying new capital investment provisions and modifying existing statutes (across various sections such as bond proceeds, asset preservation, wetlands programs, flood mitigation, and transportation-related authorities).
  • It includes amendments to allow onetime appropriations, adopt specific project priorities, and provide flexibility for asset preservation and capital improvements under designated sections (e.g., Minnesota Statutes chapters cited in the bill).
  • It adjusts how unspent appropriations can roll into asset preservation and how certain funds are allocated or reallocated for ongoing or future projects.

• Program scope and administration

  • Adds or expands programs for natural resources, wetlands replacement, RIM reserves, flood mitigation, and wildfire infrastructure.
  • Expands protections and priorities for public land acquisitions, dam work, accessibility improvements, and parks/trails improvements.
  • Broadens authority to issue and manage debt through bond proceeds for capital projects.

• Funding structure and fiscal rules

  • Reaffirms the use of bond proceeds for capital improvements in line with constitutional debt limitations.
  • Specifies onetime nature of some appropriations and clarifies conditions for transfer and use of funds.
  • Includes provisions for making staff costs attributable to capital projects eligible for funding.

Financial and Funding Structure (High-Level)

• Funding sources

  • Bond proceeds fund for most capital projects.
  • Onetime appropriations from the general fund in fiscal year 2027 for specific items.
  • Some funds drawn from trunk highway fund or other named funds for particular projects.

• Spending and duration

  • Many appropriations are designated as “available until the project is completed or abandoned.”
  • Some appropriations may be used for staff costs directly tied to capital projects.
  • Unspent portions of appropriations can roll into asset preservation or related programs as allowed by statute.

• Debt and repayment

  • Debt service on bond-funded projects must be repaid according to statutory provisions (e.g., Rural Finance Authority repayment requirements).

Impacts and Considerations

• Broad modernization of state facilities and infrastructure across education, natural resources, transportation, public safety, veterans services, and culture.
• Potential economic impact from large-scale construction, job creation, and long-term asset maintenance.
• Emphasis on resilience (flood, wildfire, dam safety) and accessibility improvements.
• Increased coordination across multiple agencies and local governments through grants and matching programs.
• Fiscal implications include increased state debt service and one-time funding commitments, with rules for unspent funds and asset preservation.

Implementation and Oversight

• Projects generally follow design, predesign, construction, and modernization stages with the possibility of predesign and design work preceding full construction.
• Security, infrastructure integrity, and site improvements are tied to long-term master planning for the Capitol Complex and related facilities.

Unspent Appropriations

• The bill includes provisions that allow the unspent portion of an appropriation to be used for asset preservation if a project is completed, and references to related statutory authority for such use.

Summary in Plain Terms

• The bill is a large capital investment package that funds a wide array of public construction and preservation projects using bonds and onetime funds. It covers universities, state agencies, natural resources, transportation, public safety, veterans services, parks, wetlands, dams, flood protection, and more. It also updates several statutes to support these investments, sets project priorities, and authorizes new or expanded programs consistent with the capital improvement goals.

Relevant Terms - capital investment appropriations - bond proceeds fund - one-time appropriations - asset preservation - capital improvements - predesign/design/construction - public lands acquisition and betterment - wetlands replacement program (local/ statewide) - Reinvest in Minnesota (RIM) Reserve Program - flood hazard mitigation - wildfire infrastructure/Brainerd airport - accessibility improvements - dam renovation/repair/removal - Parks and Trails Local and Regional Grants - trunk highway fund - general fund - Transportation Building consolidation/remodel - Capitol Complex physical security upgrades - Capitol Building Asset Preservation - Centennial Office Building demolition - Minnesota Zoo improvements - Amateur Sports Commission funding - Rural Finance Authority and related farm loan programs - metropolitan council regional projects - direct care and treatment facilities - Minnesota correctional facilities asset preservation - veterans homes upgrades (Minneapolis, Hastings, etc.) - BCA Bemidji facility upgrade - debt service and statutory debt rules - statutory amendments to Minnesota Statutes (various sections cited)

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