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League joins MVST coalition Page 1 of 2 Cities Bulletin ONLINE EDITION League joins _MVST coalition Issue 4 By Anne Finn Published: March 2, 2006 The League's Board of Directors voted in February to join Minnesotans for Better Roads and Transit, a group formed by transportation advocates to promote passage of a constitutional amendment proposed by the 2005 Legislature. The amendment would phase -in dedication of 100 percent of the existing motor vehicle sales tax (MVST) to highways and transit. The list of coalition members includes a broad range of stakeholders representing business, construction, labor, local government, the environment, transit, and highways (view pdf of coalition members). The two conditions for membership in the coalition are as follows: • Support passage of the November 2006 MVST constitutional amendment (view pdf of amendment languag_e). • Support the language as currently constructed /written. If passed by a majority of those voting in the 2006 general election, two sections would be added to the Minnesota Constitution, article XIV: • Beginning in FY 2007, 63.75 percent of the revenue from the motor vehicle sales tax (MVST) would be apportioned for transportation purposes. The revenue apportioned for transportation purposes would then be increased by 10 percent for each subsequent fiscal year through June 30, 2011. The revenue would be apportioned 100 percent for transportation purposes after June 30, 2011. • Not more than 60 percent of the revenue from the MVST transfer would be deposited in the Highway User Tax Distribution Fund, and not less than 40 percent would be deposited in a fund dedicated solely to public transit assistance. The League has long supported constitutional dedication of 100 percent of the MVST to transportation purposes. Voters will have the opportunity to vote yes or no on the proposal on Nov. 7, 2006. If passed, the amendment would provide approximately $300 million in additional revenue for roads and transit when it is fully phased in. In spite of the almost- universal support for constitutional dedication of the MVST, the constitutional amendment proposed by the 2005 Legislature is not without controversy. The amendment is worded to allocate "at least" 40 percent of the proceeds to transit and "up to" 60 percent to roads. Technically, the language gives the Legislature the authority to invest all the proceeds in transit. While this scenario may not be politically feasible, the fact that it would be legal has mobilized those who want to limit transit investments. In response, Sen. Keith Langseth (DFL- Glyndon) has introduced SF 2446, which would replace the constitutional amendment proposed by the 2005 Legislature with a new proposed amendment. The language in SF 2446 constitutionally dedicates and apportions the MVST so that 40 percent is dedicated to public transit assistance and 60 percent to roads. The League's transportation funding policy supports the constitutional amendment as passed by the 2005 Legislature and requests that the Legislature distribute the proceeds equitabl; -12 veen roads and transit. Therefore, the League is tttp: / /www.lmne.org /bulletin /story.cfm ?id= 1042 &title _ id =1 3/6/2006