For more information contact: Matt Swenson 651-297-8406
This summer’s collapse of the I35W Bridge clearly illustrates the need for a comprehensive state transportation bill – something legislators and the governor must address when the new session begins in February.
The state’s transportation infrastructure must be sufficient to ensure a thriving economy, provide a hassle-free commute, and maintain a high quality of life for all Minnesotans. But we have challenges to overcome before we attain those goals.
MnDOT reports that about 1,100 Minnesota bridges are considered substandard or in need of repair – 714 of those need immediate attention. MnDOT also estimates that more than a third of our state roads are too far gone to be fixed and that we now need more than $2 billion a year to construct and maintain our transportation system. That’s $2 billion the state doesn’t have.
At the same time, MnDOT officials tell us work on those bridges and other crucial transportation projects statewide may have to wait because there simply isn't enough funding to rebuild the I35W bridge and address our crippled transportation infrastructure.
Why not? Shouldn't MnDOT have reserve money in place specifically for emergencies such as this that should help them with the cash flow needs associated with the bridge?
The Legislative Audit Commission will be looking at that question and others that arose after the bridge collapse as it considers whether MnDOT is spending its tax dollars in the right places. The Commission's findings will be released in early February. I hope my fellow legislators and the governor will join me in weighing these findings when drafting a comprehensive transportation bill the state so desperately needs.
Most transportation needs are funded via:
· the state’s 20-cent per gallon gas tax
· the motor vehicle sales tax
Every penny of the gas tax is constitutionally dedicated to maintaining the state’s roads and bridges. In short, it’s a user fee – people who use the roads and bridges pay for maintenance and construction. But it hasn’t been adjusted since 1988, which means the current buying power of our 20-cent gas tax is now just 12 cents.
That erosion of buying power means cities and counties are spending large amounts of property tax revenue to address transportation needs in their communities. Since the mid-1990s, local property tax levies for roads and bridges in Minnesota have doubled, soaring to an estimated $1.6 billion in 2006. In fact, property tax dollars dedicated to transportation needs in our state now exceed the amount spent on roads and bridges from Minnesota's gas tax.
Property tax payers – including senior citizens on fixed incomes, middle-class families, and small businesses – shouldn't be picking up the additional burden of paying for our roads and bridges, especially when property taxes have already risen more than $2 billion during the last five years.
As for the motor vehicle sales tax, Minnesota voters approved a constitutional amendment last November that dedicates all of this revenue to transportation by 2012. The MVST change means that about $270 million per year will be redirected (phased in over the next 4 years) from the general fund to road and transit.
Previously, only 54% of MVST revenue was spent on transportation; the rest went to the general fund. After the phase-in is complete, 60% of MVST revenue will be directed to highways and 40% to transit (36% in the metro area, and 4% in Greater Minnesota).
It’s unfortunate that last year's comprehensive transportation package was vetoed. It is imperative that we find a stable, fair, and sufficient source of funding to provide a 21st century transportation system for all Minnesotans. It’s equally important to pay at least some of the costs as we go. We can’t just bond everything and leave the entire bill to our children.
This summer’s disaster makes clear that none of us can afford to sit back, do nothing, and wait for somebody else to fix things. It’s our problem and we have to step up. I am working with my colleagues to ensure that the legislature starts off the 2008 session with a strong transportation package. I will continue to support bipartisan efforts to address our transportation needs squarely and honestly. The safety and wellbeing of Minnesotans should always come first.