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Legislative Update

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  1. Legislative Update The Minnesota Transportation Alliance Annual Meeting 2007

  2. 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

  3. 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

  4. 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. 

  5. 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

  6. 2007 Session • “Lights On” bill passed with largely status quo budget • Bonding bill vetoed • Transportation policy bill not passed

  7. New Interest in Transportation • Media • Public • Legislators • Joint House/Senate Transportation Committee Hearings • I-35W Bridge Collapse Task Force • Contingent Transportation Appropriations Group

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. Revenue Decreasing Costs Increasing Need for Government Action Fund Balances Depleted Demand/ Population Growing The Perfect Storm Property Taxes Increasing

  14. AS REQUESTED, I METWITH OUR LEGISLATORSAND WE CAME UP WITH A COUPLE OF NEW REVENUE IDEAS.

  15. THE KEY REVENUE ASSUMPTION IS THAT AN ARMORED CAR CRASHES THROUGH THAT WALL AND SPILLS ITS CONTENTS.

  16. AND DON’T STAND WHERE THE COMET IS ASSUMED TO STRIKE OIL.

  17. 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??

  18. 2008 Session • Bonding Year • Local bridge bonding • Local Road Improvement Program • Transitways • Try Veto Override? • Urban Partnership Agreement – Need state matching funds • Policy Issues

  19. 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

  20. Transportation Day at the Capitol Wednesday, March 5th Kelly Inn St. Paul