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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
Transportation Bill is good for rural Minnesota
In the first real show of bipartisanship since the passing of the bonding bill earlier this session, the members of the House passed the Omnibus Transportation Bill yesterday. We have $1 billion of unmet transportation needs in our state each year. While this legislation will not do it all, it does pump in more than $770 million to help solve this problem.
An amendment offered by Rep. Ron Erhardt added the significant funding components in the bill. It includes a gas tax increase, 5 cents a gallon this year and another 5 cents by 2008. The state gas tax is currently 20 cents a gallon and was last increased in 1988. Each penny of new gas tax raises $32 million annually.
This bill also generates revenue by increasing license tab fees on new vehicles and $100 million in Trunk Highway bonds per year beginning in FY06. Funding for public transportation was also increased.
I supported this bill because it is good for our state, including rural Minnesota. This bill will give Nicollet County alone at least an additional $10,000 million over the course of the next 10 years. Sibley County will receive over $8 million. These funds are a substantial boost to address problems that are steadily getting worse.
The governor has said he will veto the gas tax increase, but I hope he doesn't. We need to address the problems with real solutions. I realize a gas tax may be unpopular to some but a 5 cents per gallon increase will cost the average driver about $50 per year. Also, what are the savings from not being stuck in traffic when we go to the metro area, and how much more do we save in both lives and dollars with safer roads and bridges in Greater Minnesota? This bill will help get the transportation job done right.
The Erhardt amendment received the support of the League of Minnesota Cities, the Minnesota Transportation Alliance and the MN Senior Federation to name just a few of the more than 20 business community members, local governments, labor and transportation advocates who supported this balanced approach to funding transportation.
The House also passed the Tax Omnibus Bill this week, which I have real concerns about. This bill does not offer enough property tax relief, which will lead to more increases in property taxes.
I did support an amendment to the tax bill, which would have restored a portion of the cuts to Local Government Aid (LGA), but the amendment was not adopted. This bill in its current form decreases LGA for cities of the first class (Minneapolis, St. Paul and Duluth). This decrease is troubling, as it indicates growing support in the administration for limiting the amount of money our cities receive from state taxes. I would hope that decreases for other cities in the state are not in line for the same type of LGA decrease.
If this amendment had passed, the city of St. Peter would have received at least an additional $643,000 and Mankato would have gotten over $821,000. New Ulm's aid would have increased by almost $155,000, LeCenter would have seen a $243,000 increase, LeSueur would have received over $50,000.
The bill also cut the state renter's credit by $66 million, twice the amount proposed in Governor Tim Pawlenty's budget. I can't support these harmful cuts and property tax increases.
The bill also proposed a Turbo-Charged Truth in Taxation postcard. This postcard will be sent to each property owner with his or her property tax notification. If 20% of the cards are returned, objecting to the tax increase, the city will be required to hold a referendum. While this may sound good in theory, I do not support it.
First, a referendum could potentially cost local governments a lot of money. It also will eliminate the public hearings that are held now to give residents the opportunity to voice their opinions to their local leaders. Also, each property gets one postcard, which limits the vote to only one member of the household. This also means that out-of-town landlords of commercial properties have the same ability to call a referendum as residents do, but in all likelihood will not be present to vote.
I do believe that it is important to keep government accountable through public opinion, but I don't think this is the best way to do that. This is another unfunded mandate from the state that will only cost our cities more money, starting with printing and mailing the postcard.
There are some very good provisions in this bill, which I do support. This bill adjusts the alternative minimum tax which, though designed so that the wealthiest people with high deductions actually pay some income tax, was not indexed for inflation and it is now catching more middle-income taxpayers. And, a pending sales tax on sausage and other locally produced specialty meats has been axed once and for all-good news for people who like to purchase locally grown and produced food.
Both of these bills now pass to the Senate. They have the choice of either accepting them or moving them to Conference Committee, where the differences between the House bill and Senate bill will be worked out. After final passage by the House and Senate, they will move to the Governor for his signature or veto.
Please feel free to call or write if you have ideas or concerns you want to share about state or local issues. I can be reached by phone at 1-888-682-3180 or 1-651-296-4193, by mail at 231 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at the above address. If you are interested in receiving my e-newsletter, please email me at rep.jeanne.poppe@house.mn 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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