Purpose

• This bill proposes a constitutional amendment to allow the state to incur public debt to pay for public information technology systems licenses and infrastructure. In short, it would let Minnesota borrow money specifically to fund IT-related needs for public systems.

Key Provisions

• Adds a new purpose (j) to the list of allowed uses for state public debt: paying capital costs of design, acquisition, installation, construction, equipping, and servicing public information technology systems licenses and infrastructure.
• Keeps existing purposes for public debt, including:
  • a) acquiring and improving public land, buildings, and other capital public improvements
  • b) repelling invasions or suppressing insurrection
  • c) temporary borrowing
  • d) refunding outstanding bonds
  • e) establishing and maintaining highways
  • f) forestation and preventing/abating forest fires
  • g) constructing and operating airports and air navigation facilities
  • h) developing agricultural resources by extending credit on real estate security
  • i) improving and rehabilitating railroad rights of way and rail facilities (with a bond cap)
  • k) any other purpose authorized by the constitution
• Includes a financial cap for rail-related bonds: bonds issued and unpaid for the railroad purpose (i) may not exceed 200,000,000 par value.
• Allows political subdivisions to engage in the same works (including IT) and to contract debt for those purposes, as authorized by law.
• Requires that debt authorization laws be approved by a three-fifths vote of the members of each house of the Legislature.

Process and Voting

• The proposed amendment must be submitted to Minnesota voters at the 2026 general election.
• The ballot question will ask voters: Shall the Minnesota Constitution be amended to permit the state to issue bonds and incur public debt to pay for public information technology systems licenses and infrastructure?

Practical Impact

• The change would give the state explicit constitutional authority to borrow money specifically to fund IT systems, licenses, and related infrastructure.
• It signals a potential expansion of state borrowing beyond traditional uses (like highways and land improvements) to include digital and technology-related projects.
• Because voters must approve the amendment, the final decision rests with the people in 2026.

Potential Considerations

• How large the IT borrowing should be and how projects will be selected, cost-controlled, and overseen.
• How IT projects are defined and what constitutes “capital costs” for licenses, installation, and servicing.
• How the debt interacts with existing budget needs and long-term financial planning.

Relevant Terms - public debt - bonds - par value - three-fifths vote - Article XI Section 5 - constitutional amendment - public information technology systems licenses and infrastructure - design, acquisition, installation, construction, equipping, servicing - capital costs - political subdivisions - bonds issued and unpaid - 2026 general election - submit to voters - internal improvements - purposes a–k (as listed)