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Legislative Update. The Minnesota Transportation Alliance Annual Meeting 2007. 2007 Legislative Session. Proposals to increase gas tax by 10 cents per gallon Remove caps on license tab fees Proposals to expand authority for wheelage tax to all 87 counties

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legislative update

Legislative Update

The Minnesota Transportation Alliance

Annual Meeting 2007

2007 legislative session
2007 Legislative Session
  • Proposals to increase gas tax by 10 cents per gallon
  • Remove caps on license tab fees
  • Proposals to expand authority for wheelage tax to all 87 counties
  • Proposals for $1.7 to $2 billion in trunk highway bonds over 10 years
governor pawlenty s proposal
Governor Pawlenty’s Proposal
  • $170 million/year for 10 years in trunk highway bonds
  • Dedicate sales tax on leased vehicles to transportation
  • $100M of surplus for priority trunk highway projects
  • $5M of $100M for Mileage Tax Study
  • Exempt trunk highway fund from state sales tax
2007 legislative session1
2007 Legislative Session
  • HF946 passed by 2/3 of House and Senate
  • Provided balanced package to meet needs statewide
  • 2 tax increases
    • Gas tax: 5 cents, increasing to 7.5 by 2011
    • License tab fees – remove caps, cars currently owned, not impacted
  • Other provisions authorized local taxes, authorized bonding and dedicated existing funds
  • Provided an increase of $692 million/year in NEW REVENUE over the next 10 years.  With trunk highway bonds - $842 million per year. 
137 60 vote on hf946
137-60 Vote on HF946
  • Vote in House: 90-43
    • 83 Democrats
    • 7 Republicans

Vote in Senate: 47-17

- All Democrats and 4 Republicans

    • Two votes short of override in House
2007 session
2007 Session
  • “Lights On” bill passed with largely status quo budget
  • Bonding bill vetoed
  • Transportation policy bill not passed
new interest in transportation
New Interest in Transportation
  • Media
  • Public
  • Legislators
    • Joint House/Senate Transportation Committee Hearings
    • I-35W Bridge Collapse Task Force
    • Contingent Transportation Appropriations Group
mndot budget woes
MnDOT Budget Woes
  • New I-35W bridge highest priority
  • Other projects programmed for FY08 and FY09 in question
  • With action taken during Special Session, budget authority at $616 million
  • Bridge and related costs for FY08 $338M
    • Total Cost: $393M
  • Congress authorized $250M for bridge costs
cash flow bid lettings
Cash Flow? Bid Lettings?
  • Without action by Contingent Appropriations Group, MnDOT short $145M for FY08
  • Group agreed to an additional $60M in budget authority to get through the February letting
  • Wakota Bridge scheduled for January letting – no commitment to maintain project
  • Cash flow for THF in trouble even with federal funds
slide11

Performance Targets

InfrastructurePreservation(82%)

Interregional Mobility(<1%)

Trade Center Mobility(4%)

Safety (14%)

Highway Related Transit (<1%)

Forecasted Available Funding Priorities

$3.6 Billon Total

$515 Million/Year

Planning Period, 2008-2014

additional investments to meet performance

Performance Targets

InfrastructurePreservation(1%)

Interregional Mobility(11%)

Trade Center Mobility(70%)

Safety (18%)

Highway Related Transit (0%)

Additional Investments to Meet Performance

$16.8 Billon Total

$2.4 Billion/Year

Planning Period, 2008-2014

estimate of unmet needs
Estimate of Unmet Needs
  • Trunk Highways $1 Billion+/year
  • County/City Roads $473 million/year
  • Local Bridges $110 million/year
  • Metropolitan Transit $300 million/year
  • Greater MN Transit $ 26 million/year
  • Ports, freight rail, air $ 8.5 million/year

TOTAL: 1.9 Billion/year

the perfect storm

Revenue

Decreasing

Costs

Increasing

Need for Government Action

Fund Balances Depleted

Demand/

Population Growing

The Perfect Storm

Property

Taxes

Increasing

slide16

THE KEY REVENUE ASSUMPTION IS THAT

AN ARMORED CAR

CRASHES THROUGH THAT

WALL AND SPILLS ITS CONTENTS.

opposition
Opposition
  • Bill in 2007 – TOO BIG!
  • Just need to “re-prioritize”
  • Just get rid of earmarks
  • Fix the distribution of revenue
  • Don’t take advantage of the bridge collapse
  • We need a vision
  • Be innovative
    • Mileage tax study??
2008 session
2008 Session
  • Bonding Year
    • Local bridge bonding
    • Local Road Improvement Program
    • Transitways
  • Try Veto Override?
  • Urban Partnership Agreement – Need state matching funds
  • Policy Issues
we all need to get involved
We All Need to Get Involved!!
  • Call or e-mail your legislators
  • Send letter to editor to local newspaper
  • Sign up to be a Transportation Advocate:
    • www.transportationalliance.com
  • Host an Advocacy meeting at your organization
  • Make a contribution to Progress In Motion
  • Attend a Town Hall Meeting
  • Attend your precinct caucus meeting
  • Use the internet
transportation day at the capitol
Transportation Day at the Capitol

Wednesday, March 5th

Kelly Inn

St. Paul

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