Before the Transportation Amendment was passed , the tax paid when you buy a car went into the general fund, which is a large pot of money that funds many state programs. Budget forecasts show an increasing state budget, and the Amendment will be phased in over five years. Education, health care, and other services will not be hurt by passing this Amendment; in fact, a strong transit system supports these vitally important state programs.

It is very unlikely that this transfer will affect existing funding, or even make a significant dent in future funding of programs. In fact, the Amendment was designed to prevent that problem.

When Minnesota’s Transportation Amendment is fully implemented in 2012, an estimated $300 million will be available annually for roads, bridges and transit projects across Minnesota.

The Amendment will be phased in over five years. Approximately $60 million of new revenue will be needed each year to fund the Amendment. Fortunately, based on the last 15 years of changes in state revenue, it is very likely that all of the money needed to fund Minnesota’s Transportation Amendment will come from the growth in state revenues, not existing resources.

The budget forecast for the next two years already includes a surplus of more than $400 million, even accounting for Minnesota’s Transportation Amendment. That is exactly what the legislative supporters expected to happen when they decided to phase in the Amendment’s implementation.

After all, we want good schools and affordable health care too!

General Fund
It is important to note that the shift of the motor vehicle sales tax (MVST) revenue to transportation (including at least 40 percent to transit) represents only about 1.5 percent of total general fund dollars. Further, if the constitutional amendment passes, the MVST won't immediately transfer to transportation. Rather, the shift will be phased in over time.

Over the last fifteen years, state general fund revenue has grown by an average of $560 million each year. That's $560 million added to the base state budget every year. And Minnesota's Transportation Amendment will be phased in by shifting just $60 million a year over the next five years. In other words, roughly 10 percent of new revenue the state gets for the next five years should go to transportation; a dime out every dollar of the new revenue. The other 90 cents will go to other state needs.

Funding for Roads Versus Transit
Some opponents tried to instill fear that there was nothing to stop the legislature from dedicating 100 percent to transit in the metro area. All legislators have roads and bridges in their districts that need fixing. The need for transit outside the metro area is increasing too. Our entire transportation system is in need of significant dedicated funding.