On Tuesday morning, Gov. Dayton unveiled his $1.5 billion bonding proposal that would invest mostly in infrastructure projects thoughtout the state. A “snapshot” of his plan can be found here.
There are several notable things in this proposal, including:
It’s size. The proposal calls for issuing $1.4 billion of state general obligation bonds and $150 million of other bonds. General obligation bonds are backed up in full by the State of Minnesota. General fund dollars are used to retire this type of debt and the bonds are limited to projects owned or sponsored by the state or a local unit of government. The other bonds are mostly revenue bonds, meaning a specific revenue stream is identified and is the only revenue that must be used to pay the back. Continue reading