Minnesota Report

The Office of Management and Budget, discussed the pending increase in Capital Investment Bonds based on the two responses by the Federal Reserve to increase the interest rate basis points. This means through the sale of Capital Investment Bonds, the Debt Service amount will be higher and the opportunity for lower rates is waning.

As we have argued before this is a problem which can be avoided completely, if and when the legislature is called back into Special Session, the forgo a General Obligation Bonding Bill, which requires a 60% majority and do a $2-3 Billion Cash Bonding Bill, which is taken directly from the surplus in the General Fund, has no Debt Service, one requires a Simple Majority Vote, 50%+1, and is a means to best apply the surplus dollars. Rather than them sitting idle in the General Fund awaiting the election outcome, so that the Republicans if they are in charge, which is unlikely, to administer tax cuts to the wealthy. Again, for this scenario to manifest it would require electoral victories in the Governor’s race, the House and the Senate. Again, a sweep is a mere fantasy.