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On the Way
Volume 1, Issue 6
May 2007
CRUCIAL TRANSIT FUNDING BILL PASSED BY TRANSPORTATION FINANCE COMMITTEE, VETO THREATENED
 TAKE ACTION: The Governor has threatened to veto a crucial transportation funding bill, one that funds critical public transit service and expansion projects. It will take a 2/3rds majority in both the House and Senate to override a veto - we are very close, so your legislators need to hear from you! Please contact your legislators and tell them to support this transportation bill.
Contact your legislators today. To find out the names of your legislators, you can call the House (651-296-2146) and Senate (651-296-0504) information desks. Tell them your home address, and they will connect you to the right person.
You can also go to the Minnesota District Finder at http://geo.commissions.leg.state.mn.us/districts/start.html. Enter in your home address and zip code, and it will automatically generate the names and contact information for your state legislators.
TRANSPORTATION BILL DETAILS
In late April, transportation finance conference committee members were selected. Conferees include Senators Steve Murphy (Chair) (DFL-Red Wing), Scott Dibble (DFL-Minneapolis), Terri Bonoff (DFL-Minnetonka), Katie Sieben (DFL-Newport), and Jim Carlson (DFL-Eagan); and Representatives Bernie Lieder (Chair) (DFL-Crookston), Frank Hornstein (DFL-Minneapolis), Ron Erhardt (R-Edina), and Terry Morrow (DFL-St. Peter).
On May 9, 2007, the transportation finance conference committee agreed to a bill that included the following:
- Half cent sales tax in seven metro counties. A minimum of 50 percent goes toward transit, a 25 percent minimum goes toward roads, and 25 percent is flexible funding. The sales tax must be imposed by the individual counties. In other words, the legislature DID NOT choose to impose the metro sales tax. Metro county commissioners, however, have pledged their support for this measure. Since they directly serve the metro area, they are more accountable to metro residents than the larger state legislature.
- Motor Vehicle Sales Tax (MVST, also known as Transportation Amendment funding). 36 percent will go toward metropolitan transit needs, and four percent goes toward greater Minnesota transit needs.
- Motor Vehicle Sales Tax (MVST) on leased vehicles. The MVST on leased vehicles will be phased in by 2012. 50 percent of this funding will go toward roads, 37.5 percent will go toward metropolitan area transit, and 12.5 percent goes toward greater Minnesota transit.
- Other. Roads receive funding from a five cent gas tax increase, a tab fee adjustments, a wheelage tax in the metro counties, and substantial trunk highway bonding.
Good News: The MVST on leased vehicles equals $19 million per year, when it's fully phased in by 2012. This is approximately 7.5 percent of what the half cent sales tax raises. With this legislative package, transit will receive between 57.5 and 82.5 percent of the funding requested in the Transportation Choices 2020 bill.
May 1, 2007: Governor Vetoes Capital Investment (i.e. bonding) Bill
On May 1, 2007, Governor Tim Pawlenty vetoed the bonding bill, which included significant new funding for transit projects throughout the state. He has threatened to veto the transportation bill, continuing his refusal to consider any new investments if revenue is raised by a tax increase. It is unknown whether the Capital Investment conference committee will attempt to override the Governor’s veto, or will attempt to craft a different proposal.
Key transit projects that were slated for funding in the Capital Investment Bill included:
- Central Corridor light rail transit: $40 million
- Union Depot: $3 million
- Midwest High Speed Rail: $2 million
- Southwest LRT: $500,000
- Red Rock Commuter Rail: $500,000
- Rush Line Commuter Rail: $500,000
- Northstar Commuter Rail Phase II (to Rice, MN): $250,000
- Northshore Express Passenger Rail to Duluth: $250,000
- Study of future transitways (I-94, I394, I-494): $250,000
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