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On the Way
Volume 2, Issue 3

March 2008

What Does the Transportation Bill Mean?

Transportation Choices 2020: A Victory!


Transit for Livable Communities initially developed the Transportation Choices 2020 initiative to ensure that more Minnesotans could use transit to reach their destinations. Transportation Choices 2020 was designed to fully fund the Metropolitan Council’s transit plan by 2020. The plan included construction of eight dedicated transitways (i.e. light rail, commuter rail, and bus rapid transit), doubling bus ridership by 2020, creating better transit facilities and new park & ride capacity, providing revenue to local governments for bicycle and pedestrian projects, and expanding transit in Greater Minnesota.

As a statewide funding bill, Transportation Choices 2020 rapidly gained political support after its introduction in 2004. By passing House File 2800 (the 2008 omnibus transportation bill) and the Transportation Amendment in 2006, Minnesota has moved much closer toward securing the funding needed to make Transportation Choices 2020 a reality. With revenues from both the sales tax (used in the 2008 transportation bill) and the motor vehicle sales tax (used in the Transportation Amendment) declining, additional funding is still needed. Still, these victories ensure that critical projects now have the opportunity to leverage federal matching funds.


The 2008 Transportation Bill/Key transit provisions

  • ¼ Cent Regional Sales Tax. The quarter cent regional sales tax will likely raise over $100 million per year for transit needs. Revenues will be directed toward the Transportation Choices 2020 vision outlined above, and up to 1.25 percent of this funding is dedicated toward bicycle and pedestrian projects and programs.
  • Creation of a new Joint Power Association (JPA). Seven metropolitan counties have the opportunity to opt into the JPA, which will determine how new sales tax revenues will be spent.
  • Urban Partnership Agreement (UPA). This will provide critical funding for funding to leverage over $90 million in federal funding for the I-35W and Cedar Avenue Bus Rapid Transit projects through the UPA.
  • Bus System Funding. New funding for expanding the bus system will come from increased motor vehicle sales tax revenues.
  • Property tax relief. Counties were previously required to pay 17 percent of the capital costs for rail projects. The bill now eases property taxes, by lowering this support to 10 percent. There will also be no property tax funding of rail operating costs.
  • Motor Vehicle Sales Tax (MVST). The MVST on leased vehicles will provide $5.8 million per year in new transit funding for Greater Minnesota.

What’s Next?

The 2008 Transportation Bill was a historic win for transit in Minnesota. The Transit Partners coalition, facilitated by Transit for Livable Communities, played an important role in passing this bill.

Still, there are several challenges ahead. First, we need to get the counties to join the JPA. Second, we need to move the Central Corridor light rail transit line forward with $70 million in General Obligation bonds this year and another $30 million in the 2009 legislative session. Third, we need to protect the current general fund allocations to transit.

Finally, a region-wide transit system requires increased attention to land use planning and a “fix-it-first” approach to road funding. Transit-friendly land use entails identifying growth centers and corridors, and incentivizing this development through zoning changes, public-private partnerships, and local incentives.

In short, we have to keep up the great work. You can help by calling your county commissioner and state legislators and ask them to follow through on their support for transit funding.

The New TC2020 Map is here! See what will be built with the new money:

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