Senate passes transportation funding bill to move Minnesota forward

05/16/2007

(ST. PAUL, MN) -- On a bipartisan 47-17 vote, the Minnesota Senate passed the funding compromise that was adopted by the Transportation Conference Committee. The funding package includes a 5-cent increase in the gas tax, effective September 1, 2007. Both the Senate and House originally passed a 10-cent increase.

"I am proud to support this real investment in our state's transportation system," said Sen. Ann Lynch, DFL-Rochester. "The bill provides stable, dedicated funding, and with the passage of this legislation, we're restoring Minnesota¹s pay-as-you-go tradition for transportation funding."

"A recent poll showed that a slight majority of Minnesotans supported a nickel increase in the gas tax and support will continue to grow as people see the results of their investment in transportation," said Sen. Lynch. "The gas tax is constitutionally dedicated to funding our roads. With this funding, construction and maintenance projects will move forward, and citizens will see real results in safer and less-congested roads." Sen. Lynch said the comprehensive funding package balances the needs of Minnesota's highways, local roads, and transit systems in a fiscally responsible approach.

Counties in Greater Minnesota could levy a half-cent transportation sales tax, subject to voter approval. The bill also allocates revenues collected under the Motor Vehicle Sales Tax and leased vehicle sales tax to transportation purposes. The legislation removes the caps on vehicle registration that were put in place during the Ventura administration. Vehicle depreciation is also accelerated, which will result in a savings for most vehicle owners.

Additionally, the bill authorizes a bonding program supported by a surcharge on the gas tax, capped at 2.5 cents that will be used towards debt service on the bonds. "We're reducing the burden on future generations by putting real money towards the debt service today."

The House of Representatives passed the conference committee report prior to sending it to the Senate. The bill will now be sent to the Governor.

"The Legislature showed its willingness to compromise by scaling back this funding package from what either body originally proposed," said Sen. Lynch. "A real investment, not continued borrowing, is needed to move Minnesota forward. Rather than continue with his hard-line approach, the Governor should recognize our effort to provide a fair and reasonable solution to our state's transportation funding crisis, and sign this bill into law."

Sen. Lynch appreciates the input she receives from constituents. Anyone with comments or questions about the transportation funding bill or any other issue facing the Legislature, may contact Sen. Lynch at G-24 State Capitol, 75 Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, MN 55155, or 651-296-4848.