Mark Dayton and DFL legislators are pushing for a bold jobs plan during the 2012 legislative session. Even-numbered years at the legislature are typically centered around passing a bonding bill, and the DFL is proposing a plan that would put thousands of Minnesotans back to work.

The DFL’s proposed bonding bill would be $775 million, which is significantly less than the $1 billion our state really needs, but would still create a significant number of jobs.

A bonding bill is an excellent remedy for weak consumer demand, which is the main problem with our economy right now. Money spent on bonding goes directly into our economy, purchasing both manufactured materials and labor. Even more important than the people put directly to work by the bonding bill is the money pumped into the economy. Each new worker and supplier for the bonding projects has additional money for their own consumer spending, creating a virtuous circle that can expand the economy by more than the number of direct hires.

The plan also includes a small tax credit that should have a lot of bang for its buck:

To encourage businesses to hire new employees, Governor Dayton and the DFL Legislators propose offering a New Jobs Tax Credit.  This would be a one-time $3,000 tax credit to any Minnesota business for each veteran, unemployed worker or recent graduate they hire during calendar year 2012, and a $1,500 credit for each new hire through June 2013.  This $35 million program would create over 10,000 new, private-sector jobs this year.

The full plan can be found here [PDF].

My prediction for the session, unfortunately, is that nothing of the sort will happen. Republicans have shown no interest at all in jobs, and I expect them to actively oppose this measure. Despite putting our state $1.4 billion in debt in 2011, when it comes to creating jobs for the poor and middle class, they’ll suddenly be filled with indignation at the prospect of a bonding bill. We don’t have the money! they’ll scream, even though (a) it isn’t true, and (b) that didn’t seem to matter to them in 2011.

I’ll have more to say on this later, but it’s important to understand that the hypocritical complaints about debt you’re going to hear from the GOP are nonsense. There’s an enormous difference between long-term bonding for capital improvements and taking out loans to pay annual operating costs. Bonding is not just fiscally responsible, it’s something we do every two years. Let’s put Minnesotans back to work!