Funds from roads to rails

With the state budget in deficit, there is concern that funds dedicated for specific purposes may see revenue shifted to other areas.

Rep. Mary Liz Holberg (R-Lakeville) raised the issue March 18 during a House Transportation Finance and Policy Division hearing on HF2848, sponsored by Rep. Melissa Hortman (DFL-Brooklyn Park).

The bill would decrease the amount of money going into the trunk highway fund by $400,000 to boost the Minnesota grade rail crossing safety account from $600,000 to $1 million.

”It’s taking undedicated funds and putting them in a pot that already exists. It is a way to do it without shorting any other projects,” Hortman said. “It’s a revenue-neutral way to get funding for rural railroad crossings.”

There is an approximate $10 million need to improve at-grade railroad crossings around the state, she said, but only $2.5 million was allocated in the 2010 capital investment law for that purpose.

The bill was approved by the division, and the House Ways and Means Committee April 12. It awaits action by the full House.

Holberg doesn’t dispute the bill’s intent, but is concerned with the “the cumulative effect” of the number of bills proposing to transfer money from the fund which is dedicated for road construction.

“There’s leakage from the fund going to other areas besides roads,” she said. “We all know there is no General Fund money, so these dedicated funds become very attractive for additional spending in various areas.”

A companion, SF2548, sponsored by Sen. Steve Murphy (DFL-Red Wing), awaits action by the Senate Finance Committee.