Weekly Update from AGC

January 21, 2022

GOVERNMENT AFFAIRS NEWS

Governor Unveils Capital Investment Plan Ahead of Legislative Session

Governor Walz released his $2.73 billion Local Jobs and Projects Plan Tuesday. It includes $2 billion in general obligation bonds, $276 million in General Fund spending and $250 million in appropriation bonds. General Obligation Bonds are backed by the state’s full faith and credit and finance publicly owned capital projects. Appropriation Bonds are repaid through annual appropriations from the Legislature and can be used to finance a broader range of capital projects.

The House and Senate gavels will strike at noon on Monday, January 31, 2022, when the MN Legislature convenes for the second year of the 2021-2022 legislative biennium. The second year is traditionally focused on public works projects funded through a bonding bill as well as changing or updating policy in law. The House and the Senate will likely introduce their own capital investment proposals.

Several issues of note to the construction community will be discussed throughout the session. In addition to a capital investment bill to fund projects, the Legislature will likely deliberate matching funds for the recently passed infrastructure law at the federal level, repayment of the depleted Unemployment Insurance Trust Fund (over $1 billion), continued COVID responses, and worker safety initiatives. Public safety, frontline worker bonus distribution and many other issues will round out various priorities of the politically split legislature, which remains a Democratic majority in the House and a Republican-led Senate. The Minnesota House will continue to meet largely via video in 2022 while the Senate will meet in a hybrid approach with committee hearings both in-person and online.

Summary of Governor’s recommendations

Total bill

$2.003b in General Obligation bonds
$250m in appropriation bonds
$276m in general fund cash
$149m in trunk highway bonds
$7.2m in trunk highway cash

Admin

$5m to expand state’s EV charging infrastructure

DEED

$7m for Business Development Public Infrastructure (BDPI) program – to Greater MN cities for match for public infrastructure to support economic development (can include streets)
$4m for Transportation Economic Development Infrastructure (TEDI) program – competitive grants for up to 100% of road/public infrastructure to support economic development – able to be combined with MnDOT program $$
$1m for Innovative Business Development Public Infrastructure (IBDPI) program – up to 50% for local govts for infrastructure to support economic development (can include streets)

Met Council

$60m for busway capital improvement program – BRT

Pollution Control Agency

$13.8m for installation and local govt/tribal grants for electric vehicle charging infrastructure

MnDOT

$80m for high-priority trunk highway bridges
$120m for local bridge replacement program
$90m local road improvement program
Totals
$244.6m in GO bonds
$1m in general fund cash
$149m in trunk highway bonds
$7.2m in trunk highway cash

Throughout the legislative session, AGC’s government affairs team will advocate for our priorities through educating elected officials on construction industry trends and operations, testifying at hearings, monitoring bills, and continuing to lead coalitions in commercial building and transportation areas to maximize our impact. AGC members play a critical role in educating legislators and decision makers. Here are three action items to take right now to help set the stage for collective impact and success this year.

Be a Construction Advocate by:

Signing up for AGC Action Alerts We’ll ask members to connect with legislators through an automated system on issues at key times during the session.
Knowing who your legislators are and reaching out. It is as simple as introducing yourself via email (cc Laura Ziegler!) and asking for additional dialogue to be a construction industry resource for them. To find out who represents you and other tips, check out this AGC resource.
Joining the AGC Legislative Committee. AGC’s next Legislative Committee meeting will be on Thursday, January 27 at 11:30 AM, and will meet every other Thursday throughout the legislative session (end of May). Any member is invited to attend. Please contact Laura Ziegler for the Zoom information.

Why should I join the Legislative Committee?

EDUCATION & EVENTS

STP Classes Begin February 23 & 24

The AGC Supervisory Training Program (STP) is a construction-specific training curriculum developed, updated and field-tested by and for contractors. Supervisory skill—or the lack of it—directly affects every company’s bottom line. You make your money in the field, and STP can help you improve your organization’s investment.

The comprehensive 6-course program focuses on the knowledge and skills that every supervisor must have to be an effective manager of people, time, equipment and materials. Sign your staff up for any or all of the following:

Unit 5 - Improving Productivity and Managing Project Costs (begins 2/23)
Unit 6 - Risk Management and Problem Solving (begins 2/24)

Lean Classes Begin (Virtually) March 29

AGC of America proudly offers Lean Construction Education Program (LCEP) Courses virtually with a series of three-hour sessions on Tuesdays and Thursdays beginning March 29th and running through May 19th, sessions held from noon to 3 pm EDT via Zoom.

All students who complete the series are eligible to take the CM-Lean Exam and earn your Certificate of Management - Lean Construction

DIVERSITY, EQUITY, AND INCLUSION (DEI) NEWS

FREE EquityLogic construction industry professional development courses

The City of Rochester and Destination Medical Center are hosting a series of free development courses for construction industry professionals, beginning next week.

Click the flyer for more info, or register here.

GENERAL NEWS

Small business preference cap applied on state-funded transportation contracts raised to $2 million

Starting Jan. 28, certified Targeted Group Businesses and Veteran-Owned Small Businesses may receive a preference of up to 6 percent of the amount of a bid when bidding as a prime contractor. The preference amount is not to exceed $120,000.

All business must earn TGB or Veteran-Owned certification before bid opening. MnDOT applies the preference when evaluating the proposals. Preferences are not used to decide actual contract award amounts or payments.

This preference increase helps veteran-, women- and minority-owned small businesses when competing for state-funded transportation contracts. It also aligns with the Department of Administration small business preference cap.

Learn more about MnDOT's Small Business Programs.

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