Dear Neighbor,
Greetings from St. Paul, where legislation I authored to dedicate revenue from existing sales taxes on auto parts is a key component in a new 10-year House Republican transportation funding plan.
In all, the Road and Bridge Act of 2015 House Republicans unveiled Monday would put $7 billion toward roads and bridges over the next decade, repairing or replacing an estimated 15,500 lane miles and 330 bridges without a tax increase.
The bill I authored, H.F. 215, is incorporated into the multi-faceted package, placing sales tax revenue already paid on everything from spark plugs to motor oil into what would be a new pot called the Transportation Stability Fund. Estimates show this would generate nearly $250 million per year for work on roads and bridges – and even more in the future.
The concept for the auto parts part of the transportation package was something of a revelation as I was wrenching on my 18-year-old vehicle last fall.
I was replacing a rim on the Suburban and the thought just popped into my mind: If I replace this rim and keep this Suburban on the road, the state is losing out on taxes that would have been paid if I just decided to get a new vehicle. Cars are running so much longer today than they used to, so why not dedicate taxes we already pay on auto parts to help support our roads and bridges?
This is a way we can prioritize funding for roads and bridges without resorting to regressive options such as raising the gas tax.
Another announcement this week pertains to the House majority's budget proposal. The top-line numbers include:
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Total General Fund spending of $39.95 billion, a $1.4 billion increase, or 4 percent, from the current budget;
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An additional $100 million being put in the budget reserve;
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Overall tax relief of $2 billion for Minnesotans;
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Unallocated money of $314 million, which will be available for further spending if needed, the budget reserve, or other uses as the session develops.
The total dollar figure is less than Gov. Mark Dayton's $43 billion proposal and, also unlike his plan, the House's does not include tax increases.
Stay tuned as things develop regarding these and other issues. The big bills are still making their way through the process and will be coming to the floor as we get closer to the time we are scheduled to adjourn in late May.
Good luck,
Jeff