One of the top challenges I've been given from residents over the past few months is to find a way to improve road and bridge funding without raising anyone's taxes.
As I'm usually told, the state's already spending enough ($40 billion) each year on government programs, so there should be a way to use more of that money for transportation improvements.
Recently, the Minnesota House majority unveiled the Road and Bridge Act of 2015. It would provide $7 billion to road and bridge projects over the next ten years, and it would come with no additional cost to taxpayers.
One of the ways we are able to make this happen is by redirecting roughly $3 billion in revenue from a number of currently collected taxes. For example, if you visit the auto parts store and buy a new lightbulb for your taillight, the sales tax collected for that purchase goes to Minnesota's General Fund, where it can be used to help fund any number of state government programs. Under this proposal, the sales tax on auto parts would be filtered into a newly created Transportation Stability Fund, where it would then be used specifically for road and bridge funding projects.
The same could be said for other current taxes that involve motorists. The Road and Bridge Act would also repurpose revenue from the Motor Vehicle Lease sales tax, the rental vehicle tax, and the sales tax on rental cars and send them to the Transportation Stability Fund. Along with statewide roads and bridges, this money would then be used for suburban county highways, metro area capital improvements, bus services in Greater Minnesota, and even small city streets.
Additionally, the Act would utilize $1.3 billion in Trunk Highway bonds, $1.2 billion from realigning Minnesota Department of Transportation resources, $1.05 billion in General Obligation bonds, and $228 million in General Funds for our road and bridge needs.
This would lead to a $4 billion infusion for state roads, $1.44 billion for county road projects, $60 million for township roads and bridges, and $282 million for street repairs in towns that have fewer than 5,000 residents.
In my opinion, the small city street provision really is the difference maker in this proposal. The transportation funding needs of our smallest rural communities always seem to be forgotten by the legislature, and this is something that will begin to help them catch up.
By contrast, Governor Dayton's transportation funding proposal would increase your motor vehicle registration tax and enact a new tax on gasoline – which will ultimately cost drivers a minimum of 16-cents more per gallon at the gas station.
I really feel that the House's Road and Bridge Act hits a home run because it meets our long-term local and statewide transportation needs without raising anyone's taxes. But I'd like to know what you think. Feel free to share your thoughts on transportation or any other topic by sending me an email at rep.jason.rarick@house.mn or by calling 651-296-0518.