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State Representative Tina Liebling
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0573
For more information contact: Charlene Briner 651-296-5809
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MINNESOTA HOUSE GIVES $4.4 BILLION BOOST TO STATE TRANSPORTATION SYSTEM
ST. PAUL – After years of neglect, under-funding, and excess borrowing, Democrats and Republicans in the Minnesota House joined together on a vote of 83 – 46 to pass a comprehensive $4.4 billion transportation package on Saturday.
"This is much more than just a transportation bill," said Assistant Majority Leader Tina Liebling. "It's also an economic development bill, a public safety bill, and a property tax relief bill. The comprehensive plan will make our roads safer, move people and goods more quickly and safely, and turn back the trend of rising property taxes to cover road and transit projects that the state has neglected to adequately pay for."
Combined with the recently passed MVST Amendment, the bill gives over $750,000 in additional revenue to Rochester in 2008 alone.
The bill dedicates 60 percent of the revenue from the motor vehicle sales tax revenue to highways and 40 percent to transit, of which 3.5 percent goes to rural transit. It increases the gas tax by five cents this year and five cents next year. Gas tax revenues are similar to user fees, because the Minnesota Constitution requires those funds to be used for roads and bridges. Minnesota's gas tax is currently at 20 cents per gallon, and has not been raised in nearly two decades. Of the 50 states, Minnesota ranks 40th with regard to the size of their gas tax, while Wisconsin's gas tax is 51.3 cents, South Dakota and North Dakota have respective taxes of 42.4 and 41.4, and Iowans pay 40.4 cents per gallon.
The bill also allows counties to ask voters to approve an additional half-cent sales tax increase.
"While the gas tax has been controversial, the terrible condition of our roads across the state makes it clear that additional revenue is needed," said Rep. Liebling. "Over the past few years, Minnesota has failed to pass a comprehensive transportation funding bill, and as a result our roads, highways and bridges are in serious disrepair – and each year we've delayed has increased the cost to repair them. The time to act on this initiative was today."
The Minnesota Department of Transportation (MnDOT) estimates that it will take $1.8 billion a year to address the numerous unmet construction and maintenance goals for state highways, roads and transit networks. Because of the lack of state funding, in 2003, MnDOT diverted money from safety and maintenance programs, including snowplowing, to make up for the insufficient cash flow. In 2004, the Department reported a budget shortfall of $162 million, and in 2005, the Department announced it was $300 million in the red. To close that funding gap, MnDOT shifted $100 in new federal aid from rural projects to metro projects, leaving to an even larger funding shortage in outstate Minnesota. In addition, Minnesota has also lost out on millions of dollars in federal matching funds because of the lack of a transportation bill.
"The chair of the United States Transportation Committee, Congressman Oberstar, made it clear that we could potential lose out on $4.3 billion in federal funds through 2009 if we fail to act now," said Rep. Liebling. "This bill gives us the ability to obtain some of that federal money to give our transportation system an additional boost. It's well past time to get people and goods in Minnesota moving forward - safely, efficiently and quickly, and this bill does that."
A similar bill was passed in the Senate this week by a vote of 42 to 24. The bill will now goes to a conference committee before final floor votes in both bodies. It will then be sent to Governor Pawlenty.
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News Items
- Rep. Tina Liebling Named Chair of House Health and Human Services Policy Committee - (Posted: 2012-11-16 00:00:00)
- Statement on DEED Bonding Project Announcement - (Posted: 2012-09-13 00:00:00)
- Local Legislators to Hold Town Hall Meeting - (Posted: 2012-07-19 00:00:00)
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