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Transportation amendment passes House, looks likely to run out of gas in Senate

House Transportation Finance Committee chair Rep. Paul Torkelson is joined by a group of Republican House members and labor union members May 17 as he previews the House Floor vote on HF4437. Photo by Paul Battaglia
House Transportation Finance Committee chair Rep. Paul Torkelson is joined by a group of Republican House members and labor union members May 17 as he previews the House Floor vote on HF4437. Photo by Paul Battaglia

Minnesota voters are another step closer to having a say on whether to constitutionally dedicate certain motor vehicle-related sales tax revenues to funding road and bridge construction.

The House on Thursday passed HF4437 76-54 to put on November’s ballot a proposed constitutional amendment that would require allocating sales tax revenues from motor vehicle parts and repair to the state’s highway construction fund.

Rep. Paul Torkelson (R-Hanska) sponsors the bill that will now go to the Senate. But the push to enshrine the shift of existing funds from the General Fund to transportation in the state’s constitution looks likely to end there.

Senate Majority Leader Paul Gazelka (R-Nisswa) has said he is unlikely to bring the bill up for a vote in that body, where Sen. Scott Newman (R-Hutchinson) is the sponsor.

“The truth is that every dollar that goes to (transportation) is coming out of Minnesota taxpayers’ pockets,” Torkelson said during floor debate. “And don’t Minnesota taxpayers deserve the chance to put their two cents in? To say, ‘I want my roads rebuilt, I want transportation to be properly funded.’ … It’s not taking money away from anyone – it’s saying that this is a priority for Minnesota. Roads and bridges are critical to the success of this state.” 

Minnesota lawmakers, Gov. Mark Dayton and state transportation officials have all reached consensus in recent years that the state is billions of dollars behind in needed road and bridge maintenance. How to fund that backlog has been the sticking point.

Rep. Connie Bernardy speaks during discussion on her amendment to HF4437. The bill would submit a constitutional amendment to voters to dedicate certain motor vehicle-related sales tax revenues to road and bridge funding. Photo by Paul Battaglia

Republicans have advocated for a shift of existing revenues — like the constitutional dedication proposed in HF4437. Meanwhile, Dayton and some DFLers have proposed increasing the state’s gas tax, which has risen just twice since the late-1980s, or hiking tab and license fees to help pay for much-needed road and bridge construction.

“The need for transportation funding is well documented,” Torkelson said. “We all know our roads and bridges are important to every aspect of society.”

Opponents of the constitutional measure argue, however, that the projected revenues that would be shifted to transportation under the plan — an estimated $300 million per year — are a drop in the bucket compared to what is needed just to keep up with current maintenance needs.

Some metro DFL lawmakers have also pointed out that the measure completely neglects funding for operation and expansion of the Twin Cities’ busy transit system.

“This does not raise any new revenue,” said Rep. Connie Bernardy (DFL-New Brighton). “It shifts money around. It diverts funding – and could force cuts – to things like education and health care … and it does not solve our transportation needs.”

If the constitutional amendment were adopted by voters, it would go into effect July 1, 2020. Under a formula that would be created, 95.5 percent of revenue collected would be allocated to the Highway User Tax Distribution Fund for use on state roads and highways. The remaining 4.5 percent of revenue would be directed to the Small Cities Assistance Program to fund local road projects.

The dedicated funding would be phased in over Fiscal Years 2021-24, distributing 60 percent of estimated revenue to transportation in Fiscal Year 2021 and increasing to 100 percent starting in Fiscal Year 2025.

 

What would voters see on the ballot?

“Shall the Minnesota Constitution be amended to increase funding for roads and bridges by dedicating existing sales tax revenue from the sale of motor vehicle parts?"


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