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Mounds View City Council October 9, 2006 Regular Meeting Page 10 will be dedicated to public transit assistance and no more than 60% dedicated to highway 1 purposes. He stated such language is the most controversial aspect of the proposed legislation. 2 3 Mr. Nustad noted how the funds would be allocated. He stated growth in general fund revenues 4 will more than replace the funds being moved for this project. 5 6 Mr. Nustad explained the deficiencies of the amendment. He said it would not be a “quick fix” 7 for needed amendments, would not eliminate the legislature’s ability to direct transportation 8 funding to different regions of the State, nor would it raise taxes. 9 10 Mr. Nustad explained the Minnesotans for Better Roads and Transit (MBRT) group and what 11 they do. He said the group is a broad coalition dedicated to improving transportation comprised 12 of more than 900 organizations and businesses. He stated the group was formed to support 13 passage of the Minnesota’s Transportation Amendment, and plans to spend $3-4 million 14 supporting the amendment. 15 16 Mr. Nustad noted there is no group opposing roads, but there is one legislator who believes the 17 language is too difficult for the average citizen to understand. 18 19 Mr. Nustad noted several organizations and groups who are members of MBRT. He stated there 20 is public consensus that new revenue is needed for transportation improvements and that 21 transportation taxes should be used for transportation. 22 23 Mr. Nustad went over fact vs. fiction regarding transportation and the current budget and 24 spending. He said that there is the perception that Minnesota’s Transportation Amendment will 25 result in budget cuts in other parts of the State budget. He explained that State revenues typically 26 grow by hundreds of millions of dollars (or billions) each year. He said that by phasing in the 27 amendment over five years, the impact on the growth in State revenue would only be $60 million 28 annually. 29 30 Mr. Nustad stated that some believe the State Constitution should not be changed to dedicate 31 taxes. He responded to the argument, saying that the Minnesota Constitution already dedicates 32 two taxes for transportation – gas tax and vehicle license tab fees. 33 34 Mr. Nustad said that Minnesota’s Transportation Amendment would not be easily passed because 35 the threshold for passing a constitutional amendment is a majority of all voters. He explained 36 that the absence of a vote is a “no” vote on the ballot. 37 38 Mr. Nustad also stated that a fictional belief is that Minnesota’s Transportation Amendment 39 would only take care of metro transit projects. He explained that State law already exists to 40 direct funding from motor vehicle sales tax to both roads and transit throughout the State and the 41 amendment will not change that. He stated that is the reason nearly 900 organizations support 42 the amendment. 43 44 Mr. Nustad thanked the Council for allowing him to discuss the issue. He encouraged the City to 45