For more information contact: Sandy Connolly 651-296-8877
St. Paul, MN – State Rep. John Ward (DFL – Brainerd) joined members of the House on both sides of the aisle today to override the Governor's veto of the comprehensive and responsible transportation bill that was passed last week.
This override represents the first significant transportation funding package in two decades, and will invest $6.6 billion for roads, bridges and transit statewide over the next ten years. Between county and municipality funding, this legislation will bring an additional $17.4 million into the Brainerd/Baxter/Crosby/Ironton/Nisswa area over the next ten years.
"This amount of new funding is staggering," said Rep. Ward. "It will not only help make our roads and bridges safer to drive on, it will support our tourism industry – a key economic driver for our region."
The transportation bill invests $6.6 billion in state highways and bridges over the next 10 years. It includes $10 million for rural road safety, the hiring of 40 additional state troopers, $650 million to repair bridges, and a tax credit for the lowest income individuals.
It brings new revenue into the system by raising the gas tax by 5 cents, phased in over the next year. An additional 2.5 cents will be added beginning in 2010 to pay for interest on $650 million in highway and bridge bonding over the next two years. The average driver in Minnesota will pay a little over $40 a year when the full 7.5 cents is phased in.
The bill also raises revenue by eliminating the cap on motor vehicle tabs on new cars - any car on the road today will continue to pay the same fees - dedicating the motor vehicle lease sales tax to transportation, and imposing a quarter-cent sales tax in the 7-county Metropolitan area for local road and transit projects.
The bill provides tax relief by offering taxpayers in the lowest tax bracket a $25 credit to offset the increase in the gas tax. Additionally, the increased road and bridge funding will relieve pressure on local taxpayers by providing additional resources for county highways and city streets.
"I appreciate the support and feedback I received over the last few days from people in my district," said Ward. "While I understand that a gas tax increase may not be appealing at first glance, when you realize what we are getting in return – safer roads and bridges, less congestion, 33 thousand new jobs a year and property tax relief – it becomes clear this is the right thing to do."
Rep. Ward said he believes a lot of factors have combined to make this the perfect time to pass a transportation bill.
"It's like a perfect storm," said Ward. "Our roads are in the worse condition they have been in for years, 700 bridges need to be replaced, property owners have stepped up to pay for local transportation projects and as a result, their property taxes have increased by 70%, the Legislative Auditor confirms that we are starving our transportation system and MnDOT is running out of money, and last August, we had a bridge collapse and people died.
We needed to act now to reverse this deadly cycle."