Agenda Packets - 1987/09/14 - Laserfiche WebLink

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LUEET-3. Transportation (A) (cont'd) Furthermore, environmental concerns and the need to conserve energy require that alternate modes of transportation be utilized in meeting the diverse needs which exist in various communities and regions of the state. Governor Perpich and other political leaders have listed the lack of an adequate transportation funding program as the single biggest failure of the 1987 Legislature. Funding inadequacy was almost assured when the governor proposed suspending the transfer of the estimated ;225 million generated by the motor vehicle excise tax (MVET) from the state's general fund to the highway and transit fund. The legislature agreed with the non -transfer of MVET and these IdVET funds, along with an approximate $700 million dollar tax increase, used to balance the state's general fund. The Minnesota Department of Transportation recently cancelled approximately $90 million in proposed highway projects because of the shortage in road funds. Many of the projects were in greater Minnesota. Metropolitan projects were spared somewhat because many qualify for additional federal funds. Additional road funding is necessary. The administration has apparently abandoned as a possible source the transfer of the MVET. Tiad in with the funding issue are the issues of jurisdiction studies and turnbacks, and potential constitutional amendments regarding dedication of the motor vehicle excise tax to the highway fund and the current allocation formula (62 percent to the state, 29 percent to the and 9 percent t.. cities over 5,000 population) for road funds. Jurisdictional studies that attempt to establish the level of use for particular roads (i.e. classifying roads as collectors, arterials, etc) will soon be completed. Some advocate the assignment of road maintenance responsibilities to the level of government that best matches the jurisdictional clossification of the road. The League recommends the following. 1. The League supports the continued dedication of the sales tax on motor vehicle sales for transportation purposes, and advocates the prompt transfer of the motor vehicle excise tax into --he highway user and transit assistance fund. The Legislature has made some effort to provide transportation funding recently by increasing license fees and the gasoline tax. The league opposes further increases in the gas tax at this time. 2. The League supports legislative efforts to establish a system of direct appropriations to cities under 5,000, either through a constitutional amendment modifying the 62-29-9 formula, or out of the current 29 percent county share of the highway user funds, or at least to the extent that townships receive direct appropriations. Mandatory state guidelines concerning county use of road fands should be required to insure that all communities within a county receive an - 41 -