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State Representative Tom Hackbarth
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-2439
For more information contact: Austin Bleess 651-296-5529
NEWS COLUMN
VOTERS WILL HAVE LAST WORD ON HIGHWAY FUNDING
By State Rep. Tom Hackbarth,
District 48A
This year, Gov. Pawlenty vetoed legislation that would have raised the state gas tax by 10 cents a gallon. Even though many expect a gas tax bill to be reintroduced during the 2006 legislative session, it will ultimately be you, the voters, who will determine if more money is spent on highways.
In the November 2006 election, you will be asked to vote on a constitutional amendment which, if approved, would dedicate 100 percent of the Motor Vehicle Sales Tax (MVST) for roads and transit. I have been a long-time supporter of this legislation. It just makes sense -- taxes you pay when you buy a car should be used for transportation purposes, right? It hasn’t always worked that way.
Beginning in 1981, state lawmakers began the first of many attempts to dedicate MVST funds to transportation. However, budget problems forced lawmakers to use MVST money for general fund purposes. For most of the 1990s, all of the revenue from the MVST went into the general fund. The tax generated $614 million in fiscal year 2002.
Beginning in 2002, about 30 percent of the MVST was dedicated to the Highway User Tax Distribution Fund (HUTDF), a primary account for road money. However, that was done to replace lost funds when Gov. Jesse Ventura reduced car license tab fees. No new money was dedicated to roads. And in 2003, about 20 percent of MVST money was dedicated to metro and rural transit to replace funding that was lost when a property tax levy for transit was abolished. Again, no new money was targeted for transportation.
Give credit to Gov. Tim Pawlenty for spearheading the issue this year. His MVST dedication proposal would add an additional $2.65 billion for transportation over 10 years. While there is growing support to raise the gas tax in order better fund road and transit needs, I believe taxpayers first deserve some truth-in-advertising regarding the MVST. There is an expectation that those funds would go to service the roads we drive on.
With a predictable and dedicated source of revenue each year, road planners and builders could more effectively map out highway and transit projects years into the future. While such a dedication would compel lawmakers in 2007 and beyond to do with less in the general fund, it would help bring accountability and clarity to our tax system.
I hope all of you have a very Merry Christmas and Happy New Year!
Rep. Hackbarth is the state representative for House District 48A which includes Elk River, Burns Township, Oak Grove, Bethel and East Bethel
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