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State Representative Jeanne Poppe
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4193
For more information contact: Sandy Connolly 651-296-8877
NEWS COLUMN
THE REAL VALUE OF A SOUND TRANSPORTATION PLAN
We are now at the end of our eighth week of the 2007 Legislative session. To this date, we have passed two significant bills – the Renewable Energy Standard, which was signed into law by the Governor on Thursday, and the Federal Conformity Bill, which provides approximately $20 million in tax deductions to Minnesotans. As of Friday, 1,337 bills have been introduced this session. The bills that garner the most attention and represent the most significant work yet to do, are the ones dealing with the top priorities of the state: education, health care, property tax reform, energy and transportation.
This week, transportation issues were in the spotlight because of a visit from U.S. Congressman Jim Oberstar. With the change in majority in the U.S. House of Representatives, Congressman Oberstar is now the Chair of the Transportation and Infrastructure Committee. He is well aware of the transportation challenges facing our state, and said he is in a position to help us address our growing crisis.
Over the past few years, Minnesota has failed to pass a comprehensive transportation funding bill. As the result, our roads, highways and bridges have fallen into a serious state of disrepair. It is estimated that over 1/3 of our state roads are too far gone to be fixed and nearly 1/5 of our bridges are deficient or obsolete. The Minnesota Department of Transportation estimates that it will take $1.8 billion a year to address the numerous unmet construction and maintenance goals for our highways, roads and transit networks.
Without a transportation bill, we also lost out on millions of dollars in 80 percent federal matching funds. According to Rep. Oberstar, these funds could amount to as much as $4.3 billion through 2009. However, in order to receive those funds, the state needs to ante up its 20 percent match.
Over the past four years, state transportation projects have been funded with an unprecedented level of bonding, most of the time borrowing against the expectation of additional federal funding. Unfortunately, that money hasn't always arrived at the level projected, which has left the Department short of cash. In 2003, money was diverted 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. As a result, MnDOT shifted $100 million in federal aid specified for rural projects to fund metro projects.
In 2006, for the first time in our state's history, MnDOT asked potential contractors to finance major projects out of their own pocket until the state could repay them. The state could not find a contractor willing to take that risk. Shifting, borrowing and pitting rural roads against metro projects is not a long-term solution.
Rep. Oberstar made a strong recommendation for a gas tax increase. This tax, the major source of funding for our highway system, hasn't increased since 1988. With inflation, our current 20-cent tax on a gallon of gas is worth the equivalent of 12 cents. Rep. Ron Erhardt, the lead Republican on the transportation committee, has introduced a bill for a gas tax increase and there are early indications it has bipartisan support.
The Governor's response to our transportation crisis has been to put more on the state's credit card.
Bonding can't be the only source of new revenue. If it is, as soon as the amounts necessary to make an impact are bonded for, the repayments eat into the Trunk Highway Fund at such a rate that after a few years more money will be going for interest than for concrete.
So, as we watch the snow fall, drive our kids to activities or put them on the school bus before we begin our commute to work, let's consider the real value of a sound transportation funding plan. We don't just want better roads and bridges, we need them – to shorten our busy days, to help our businesses thrive, and most importantly, so we can all arrive at our destination safely.
Please feel free to contact me at any time - I can be reached by phone at 1-888-682-3180 or 1-651-296-4193, by mail at 487 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.jeanne.poppe@house.mn. If you are interested in receiving my session e-newsletter, please email me and your name will be added to our list.
News Items
- POPPE SELECTED AS AGRICULTURE POLICY COMMITTEE CHAIR - (Posted: 2012-11-16 00:00:00)
- Rep. Jeanne Poppe Encourages High School Juniors to Apply for Minnesota House of Representatives Page Program - Application Deadline is November 19th - (Posted: 2012-11-12 00:00:00)
- HORMEL INSTITUTE EXPANSION SIGNED INTO LAW - 2012 legislative session adjourns sine die - (Posted: 2012-05-11 00:00:00)
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