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A Legislative Session for the Ages
By now, most everyone has formed an opinion regarding the 2023 Minnesota legislative session. Winners and losers have been tagged and outcomes celebrated or decried. What cannot be understated, however, is that what transpired over the past 4 months in St. Paul was unprecedented in our state’s policymaking history and how many of those actions will have lasting and transformative impacts on the construction industry for years to come.
Noteworthy among legislative session outcomes was the robust infusion of new and increased revenue streams for transportation infrastructure. Over $700M in annual new investment will soon be added to state and local road, bridge, and transit construction budgets. Key elements include: one-time budget surplus General Fund dollars dedicated to transportation investments; increases to vehicle license registration fees; driver license fee increases; a phased in dedication of the sales tax on auto parts to transportation; a metro area increase in the sales tax dedicated to transit; a new retail delivery fee; and the addition of an inflation indexed adjustment applied to the state gas tax. By most measures, any one of these investments can be labeled an outcome to celebrate for the highway-heavy market. It is not hyperbole, therefore, to describe the overall package as epic and generationally transformative.
Not to be outdone, commercial builders will soon see the infusion of a record $2.6 billion in capital building investments comprised of both one-time cash ($1.1B) and $1.5 billion in general obligation bonds. These investments will begin to make an impact to reduce the state’s extensive backlog of capital building and maintenance needs. A further welcome $240M boost to the underground and clean water markets was also provided to replace residential lead pipe service lines.
Advocacy, Strategic Partnerships, and Coalitions Deliver Big Gains
It is impossible to pinpoint one strategy, individual, or organization to solely credit for the pivotal role that generated these historic industry outcomes. What is deservedly cited and celebrated is the role that professional relationships, collaboration, and coalition-building play in creating legislative support by providing a clear and singular voice for broad industry priorities. We recognize and thank the many and varied groups that our AGC advocacy team worked alongside to engage the process and deliver these results. Groups like:
These coalitions brought together different groups to leverage relationships and work across the political divides that would otherwise be insurmountable. We are thankful for the opportunity to participate with these groups and proud to have been a part of such remarkable shared success. It would be remiss if we didn’t acknowledge legislative leaders and Governor Walz for stepping up and making these historic investments.
AGC is grateful for the guidance and counsel of our members, especially those who selflessly give their time to serve on our board of directors and our legislative committee. Thank you, members who annually choose to contribute to our AGC Political Action Committee(s) PACs and to our Industry Advocacy Fund(s). Without these financial resources we could not deliver the level of advocacy you expect from AGC. If you participated in our legislative action alerts, your communication gave voice at the most critical time of policy development, and you made a difference. Finally, thank you to the dedicated team of AGC legislative professionals - Laura Ziegler, Tom Murphy, and Sarah Psick. The long nights and full days of the legislative session can be difficult. AGC members should be proud of the hard work and dedication given by this team in providing the most professional advocacy representation in the industry.
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