Governor Walz revised his supplemental budget proposal on Thursday with the recent news that the state’s budget surplus grew over two billion to $9.3 billion. The new budget increases his proposed rebate checks, dubbed “Walz Checks” from $500 to $1000. The Walz Administration is also proposing a two-year fee holiday for building and construction trade license fees charged by the Construction Codes and Licensing Division (CCLD) at the Department of Labor and Industry. This fee holiday would apply to 79,170 construction-related licensees who renew or obtain a new professional license with the department. A proposed $3.4 million in fiscal year 2023 and $4.5 million in fiscal year 2024 from the general fund would backfill lost revenues to the Construction Codes Fund. Many of the budgetary adjustments are in the Human Services and public safety arenas. Additional funding for multimodal transportation, as well as asset preservation for the Department of Corrections, were also increased

Legislative leaders were unable to make a final deal on the $2.73 billion needed to restore the Unemployment Insurance Trust Fund or on frontline worker bonuses. Senate Republicans, along with Governor Walz, support using surplus dollars to replenish the fund. House Democrats support restoring the fund over time and with expanded eligibility for certain hourly workers. Additionally, the UI issue has been linked to Frontline Worker bonuses, often referred to as Hero Pay. The House Democrats proposed using one billion from the state surplus for Frontline Worker bonuses, but Senate Republicans oppose increasing the current funding pot of $250,000. There was a deadline of March 15^th because the State will begin sending out final numbers to businesses ahead of tax day next month. The legislature is in session until the end of May. 

AGC staff continues to gather information about inflation, supply chains, and their impact to the industry. Staff also are in touch with the public owners and will update members. Highway contractors who perform work with MnDOT should be aware of the fuel escalation clause, which is a special provision to compensate contractors for the cost of motor fuels and includes only certain scopes of work. A copy is also available on our website here. 

All contractors should consider price escalation clauses in their contracts, such as ConsensusDocs 200.1. (AGC-MN’s Owner-Contractor form agreement includes an explicit option to incorporate ConsensusDocs 200.1.) Contact Mike or Laura for economic slides from AGC America’s chief economist, Ken Simonson, or if you have other questions.

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MnDOT started spring load restrictions in the Central seasonal load limit zone today, Friday, March 18.

Spring load restrictions will begin in the North Central and North zones next Monday, March 21.

Spring load restrictions are already in effect in the metro, south and southeast zones. Seasonal load limit zones and restricted routes can be found on the MnDOT load limits map.

Students pursuing a secondary degree in a construction related field are encouraged to apply for an AGC of Minnesota Foundation scholarship!

Click here to apply, and direct all potential students to the AGC Foundation web page!

Registration is open for our final two STP classes before we take a pause for the summer! Sign up today!

The AGC Board of Directors invites all members to join them for a networking reception at the Water Street Inn in Stillwater on April 6!