Purpose

To provide funding and authority for building and improving Minnesota’s state roads, by appropriating money and allowing the sale of trunk highway bonds.

Main Provisions

• Appropriation of 200,000,000 from the trunk highway fund's bond proceeds account for construction, reconstruction, and improvement of trunk highways. This includes work on design-build contracts and internal department costs tied to delivering the construction program, plus consultant usage.
• The commissioner of transportation may use up to 17 percent of the appropriated amount for program delivery.
• Authority to sell and issue state bonds up to 200,000,000 to finance the appropriation. Bond sales must follow Minnesota statutes 167.50 to 167.52 and the state constitution (Article XIV, Section 11) as requested by the commissioner of transportation.
• Bond proceeds, excluding accrued interest and any premium from the bond sale, must be deposited into the bond proceeds account within the trunk highway fund.
• The timing and amounts of bond issues are determined by the commissioner of transportation and executed by the commissioner of management and budget.

Financing and Administration

• The financing relies on the bond proceeds account in the trunk highway fund, with proceeds used specifically for state road construction activities.
• The department of transportation leads project planning and implementation, while the commissioner of management and budget handles the bond sale process.

Significance and Potential Impacts

• Provides a substantial, targeted funding source for trunk highway projects and related construction activities.
• Creates a defined limit on administrative/overhead spending (up to 17 percent for program delivery).
• Ties new bonding to existing state law and constitutional provisions, ensuring compliance with debt issuance rules.

Significant Changes to Existing Law

• Introduces a new, explicit authorization for up to 200,000,000 in trunk highway bonds and a dedicated appropriation for trunk highway construction, including design-build projects and related internal costs, with a specified cap on program delivery spending. It also requires bond issuance and fund allocation to follow specific statutes and constitutional provisions.

How Funds Flow (Snapshot)

• Bond proceeds account (trunk highway fund) → used for state road construction and related costs → bond proceeds deposited back into the bond proceeds account after issuance, excluding interest and any premium.

Relevant Terms - state roads - trunk highways - trunk highway fund - bond proceeds account - bond sale / bonds / bond issuance - design-build contracts - internal department costs - consultant usage - program delivery - Minnesota Statutes 167.50 to 167.52 - Minnesota Constitution Article XIV, Section 11 - commissioner of transportation - commissioner of management and budget