Governor’s Veto Stalls Progress on Transit

June 10, 2005 - A solution to the transit budget crisis remains elusive. The legislative session ended without a required transportation budget bill after Governor Pawlenty vetoed a bi-partisan measure that provided significant new funding for roads and transit. As a result, transit still faces a $66 million statewide shortfall that can only be solved in a special session.

Transit for Livable Communities’ top priority throughout the legislative session was to fix this funding shortfall, but we also had to make the broader case that the region’s transit needs far exceed the current crisis. Minnesota’s transit budget has already been cut five times in the last four years, while new funding is badly needed to implement the Met Council’s vision of an expanded bus and rail system. Sadly, the Governor and Met Council instead proposed a budget that called for more transit cutbacks and another fare increase.

To finally get Minnesota moving in the right direction, TLC joined with legislative allies and a coalition of transit, community, labor, faith and environmental groups to introduce Transportation Choices 2020 - an historic initiative to significantly increase funding for transit, bicycling and walking statewide. Chief authors Sen. Sharon Marko (D-Cottage Grove) and Rep. Ron Erhardt (R-Edina) were joined by a bi-partisan group of 17 legislators to introduce the bill. Ultimately 24 organizations signed on in support. (For more info on the Transportation Choices 2020 Initiative click here)

TC2020 was heard in both the House and Senate transportation committees where TLC and its partners informed lawmakers about the many benefits of increased investment in transit, bicycling and walking. Hundreds of TLC activists and transit supporters packed the hearings – and thousands more supported the bill by writing, calling or meeting with their legislators.

Knowing that TC2020 was unlikely to pass in its entirety this session, initiative supporters believed it would at least define transit’s real needs and position significant portions of the initiative to be included in a final transportation bill. This strategy clearly contributed to a major victory late in the session when Rep. Erhardt amended a bare-bones House Transportation Finance bill to include significant new funding for both roads and transit.

The Erhardt amendment would have prevented transit cuts and fare increases in 2006-07 and provided over $200 million statewide in additional annual funding for transit by 2011. This level of funding was only possible because TLC, its allies, and TC2020 convinced leaders of the real needs of Minnesota’s transit systems.

" While the Erhardt amendment was not the ideal solution, it provided enough funding for everyone to make a compromise work." said Sacha Peterson, lobbyist for TLC.

The amendment passed by a slim margin (68-66), compelling House leadership to try to scuttle the bill entirely. However, the final bill was approved by the House 72-61 thanks largely to ten Republican legislators who broke from House leadership. The Senate then passed the House bill and sent it to the Governor, who promptly vetoed it, leaving no obvious solution for addressing the looming budget shortfall for transit. (Click here for more information on the Erhardt amendment.)

Despite the veto, the bill did achieve a significant victory for transit. Voters in the 2006 election could give transit its first constitutionally dedicated funding because the Governor’s veto cannot block a portion of the bill authorizing a referendum to dedicate all revenue from the state’s Motor Vehicle Sales Tax (MVST) to transportation. Transit currently receives 23 percent of MVST, roads receive 31 percent with the rest going to the general fund. If it passes, the amendment directs no less than 40 percent of MVST revenues to transit, providing an increase for transit of at least $100 million annually by 2011.

It is likely to take several years for a major initiative that fully funds regional transit plans to be adopted. This year’s efforts lay the foundation for a major shift in how Minnesota funds transportation, and helps build the strong and diverse coalition that will be needed to win true transportation reform.

“ We are gratified by the progress made this year,” offered TLC Executive Director Lea Schuster. “We saw broad acceptance of a regional vision for transit, an understanding of the true costs to make that vision a reality, and growing consensus about how to increase our investment in transportation choices, which must be a key component of any transportation package.”