08-09-2006 Council Agenda - Laserfiche WebLink

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2006 TRANSPORTATION FUNDING Highlights The House and Senate were unable to reach an agreement on supplement transportation funding in the 2006 session. Proposals around bonding, supplemental spending and seat belts were unable to find a majority of votes needed to pass both Houses. As a result, any funding for transportation projects came via the Omnibus Capital Investment Bill. Bonding Money: The Legislature agreed on a bonding bill just short of 1 billion dollars in the 2006 session. Transportation received roughly $150 million of the billion dollars spent on the state's infrastructure. MVST (Motor Vehicle Sales Tax) Amendment: As a result of the consistent lack of funding, the AMM supports the passage the MVST amendment which will be on the ballot this November. MVST is an existing tax which is collected on the sale of automobiles throughout the state. The amendment would constitutionally dedicate at least 40% of the MVST monies to transit and no more then 60% for roads. This increase in funding is a small but vital part of a funding package needed in this state. The AMM belongs to the coalition, MBRT (Minnesota's for Better Road and Transit), who's main objective is passing the constitutional amendment this fall. The coalition has over six hundred members, including transportation and transit advocates, chambers of commerce, local units of governments, building interests as well as environmental organizations. Transportation Funding Package — 2007: While the bonding bill includes appropriations for specific transportation projects, because the legislature failed to pass another comprehensive funding package the metro area is again without an accelerated funding source for another year. It has become increasingly difficult in the last decade for the legislature to pass any type of transportation funding package due to the contentious nature of the political climate at the capital. The AMM will be pursuing an aggressive transportation package during the 2007 session. Current AMM policy supports any number of revenue raising options including: • Gas Tax • Additional Highway Bonding • License Tab Fee Restoration Transportation Bonding Bill Northstar Commuter Rail 60,000,000 Local Bridge Replacement 52,500,000 ;Local Road Improvement 15,300,000 :Rail Service Improvement 2,000,000 ;Port Development Assistance E 3,000,000 MN Valley Reg. Rail Authority- - Rehab Line Metropolitan Council Central Corridor Transitway Cedar Ave Bus Rapid Transit I -35W Bus Rapid Transit Red Rock Corridor Transitway 1,000,000 7,800,000 5,000,000 3,300,000 500,000 • MVST • Wheelage Tax • Street Utility Fee in any combination, which has the political and financial viability to produce improved roads and transit in the metro area. It is our position that for the state of Minnesota to grow and prosper an adequate transportation system must be in place. It should be of particular interest to the seven county metro area to promote an efficient and safe transportation and transit plan because the economic benefit would be particularly tangible. to metro area growth. - 1 2 -