'Climate Bonding' and 'Climate Note' Explained

by Sam Streukens, Climate Change Policy & Greater MN Voter Service Coordinator

Being an even numbered year, the Minnesota legislature focused on passing a bonding bill rather than the required state budget that’s debated each odd numbered year. While bonding means how much the state loans for municipalities, universities, and other capital investment projects, the League of Women Voters of Minnesota (LWVMN) believes that spending on climate change mitigation and adaptation is an urgent priority. Taxpayers repay the debt over multiple years to roughly correlate with the public’s benefit from the improvement. Moreover, partisan differences often leave investments in climate resiliency out of the equation despite having a $9.3 billion budget surplus and federal dollars to spend this session. The state’s declining infrastructure and an impending climate crisis create an opportunity for LWVMN to lead in transparent government and public input for our future.

The bonding process begins when the Minnesota Department of Health, Minnesota Department of Transportation, and other agencies survey the state’s investment needs based on regional requests and administration priorities to send to the Governor and Commissioners. As seen this year, Governor Walz released 211 areas of interest before the legislative session. The Office of Management and Budget then shortens the list based on how much the state can loan before Capital Investment Committees consider legislative and party priorities. In the 2022 legislative session, LWVMN Lobby and Observer Corps members have only seen a handful of projects that mention climate change with none likely to become enacted. Compromise and ideological differences will outweigh extreme weather and other impacts from climate change in this year's bonding bill.

LWVMN members are increasingly concerned about the ability to follow and advocate for our priorities in the Legislature. Most legislation goes into an omnibus bill where Conference Committees will reconcile differences between House and Senate versions. Individual legislators and their constituents are left out of the final decision making process. LWVMN continues to prioritize justice and equity for all people through a representative government. Unfortunately, with an unprecedented budget surplus and the future of Minnesota in the hands of party leaders, partisan differences continue to water down important priorities ranging from the House Climate Action Plan to safeguarding democracy and investing in communities of color. We must find a way to restore trust in our government leaders to pass policies that reflect the public's interest.

With enough support, the LWVMN hopes to introduce the ‘Climate Note’ in the 2023 legislative session to apply in 2024. Intern Calyn Schardt has been actively researching how the ‘cost of climate change’ can be applied to state spending similar to the Fiscal Note. This policy change would require the Office of Management and Budget to include a note on climate change to their short descriptions that are given to the Legislature. Creating a statute for the consideration of climate change gives communities a seat at the table throughout major state spending decisions. Calyn’s work will allow LWVMN to hold legislators accountable to an important issue for Minnesotans.