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 • Proposals for $1.7 to $2 billion in trunk highway bonds over 10 years
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 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 • 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 • “Lights On” bill passed with largely status quo budget • Bonding bill vetoed • Transportation policy bill not passed
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 • 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? • 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
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
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 • 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
Revenue Decreasing Costs Increasing Need for Government Action Fund Balances Depleted Demand/ Population Growing The Perfect Storm Property Taxes Increasing
AS REQUESTED, I METWITH OUR LEGISLATORSAND WE CAME UP WITH A COUPLE OF NEW REVENUE IDEAS.
THE KEY REVENUE ASSUMPTION IS THAT AN ARMORED CAR CRASHES THROUGH THAT WALL AND SPILLS ITS CONTENTS.
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 • 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!! • 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 Wednesday, March 5th Kelly Inn St. Paul