Patrick's serious shopping list

DULL STUFF, this "Five-Year Capital Investment Plan" released by the Patrick administration last week. But don't be fooled: For the first time in years, a Massachusetts governor has laid out a coherent plan to spend the state's limited bond money and, in the process, enunciated a shift in priorities to favor higher education.

The plan totals $12 billion, with $2.28 billion the first year ramping up to $2.68 billion by 2012. These are gradual increases over what the state now spends on capital projects, which include university libraries, public housing, information systems, and other durable items. Paying off the bonds now takes up 7.65 percent of the state budget.

The Legislature has to authorize each project, but it has approved so many already that it's up to each governor to choose the ones that actually get built. Previous governors have tucked away a list of priorities in financial documents. Patrick, to his credit, clearly articulates his priorities in this plan.

Patrick is right to reserve the biggest percentage increase for higher education. The University of Massachusetts system and the state and community colleges have a backlog of $5.5 billion in capital needs. The governor lays out a five-year, $776 million program, a tripling of current spending in the first year. This money will go for such projects as elevator repairs at UMass-Amherst and renovation of two Framingham State College buildings.

Housing gets an increase as well, to a total of $834.8 million over five years. But transportation gets the largest share, at more than $5.7 billion, with some of this coming from federal funds. In the first year these bonds will pay for improvements on the Fairmount commuter rail line and several hundred million dollars worth of bridge and road repairs. The administration acknowledges this category is underfinanced and is awaiting recommendations for new financing sources from the Transportation Finance Commission, due after Labor Day.

The administration modestly raises the limit on the bond cap, the amount of money that can be spent on capital needs each year. It wants to make use of 30-year bonds, instead of the current 20-year standard, on about a third of the projects. This allows more work to be done quickly by releasing more money right away, but will increase interest costs over the long term. That's an acceptable tradeoff if used judiciously, as it is here.

Bond rating agencies are impressed with the plan, especially its pledge that the new bond cap -- 8 percent of the state budget -- will not be breached. Many of the projects endorsed by Patrick have already been approved by the Legislature, but lawmakers will still have to authorize the remainder. The governor has provided them with a blueprint that they should alter only with great care.