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which is currently unwieldy but may be reasonable with some <br /> change. Finally, it returns to the pre 1988 levy limit base <br /> using the implicit price deflator or 5% whichever is less as <br /> the increase factor. <br /> D. FISCAL DISPARITIES. <br /> The Fiscal Disparities bill HF 1126 (Rep. Rest) is still hung up <br /> in .House Metropolitan Affairs Committee by its Chair Tom <br /> Osthoff, a St. Paul legislator. The Senate companion SF 1134 <br /> (Sen. Reichgott) has passed a Tax Subcommittee and is awaiting <br /> a hearing in Senate Tax Committee. Given the problems in the <br /> House it is probable that it will not pass this year. <br /> SENATORS SHOULD BE CONTACTED TO URGE THEIR SUPPORT AND SUGGEST <br /> THEY CONTACT SEN . DOUG JOHNSON TO URGE A FULL TAX COMMITTEE <br /> HEARING AND INSERTION OF THE FISCAL DISPARITIES BILL INTO THE <br /> SENATE OMNIBUS TAX BILL. <br /> E. TRANSPORTATION FUNDING. <br /> The House passed HF 1749 which includes a 3 cent gas tax and an <br /> additional 30 percent Motor Vehicle Excise Tax (MVET) for a total <br /> of 35 percent. This position was the recommendation of the <br /> Legislative Transportation Funding Commission and is supported by <br /> the AMM as a realistic compromise providing necessary Highway <br /> and Transit funding. The Senate Finance Committee changed the <br /> 30% MVET transfer to an equal one time appropriation with 25% <br /> for transit and the other 75% directly to MNDOT . This <br /> eliminates MVET distribution to counties and cities and leaves <br /> Transportation funding undecided for future years. Senate Tax <br /> after making several changes, voted the bill to the floor on a <br /> close vote . It now includes gas tax indexing and increased <br /> vehicle license fees. <br /> PLEASE CONTACT YOUR SENATOR TO SUPPORT THE ORIGINAL CONCEPT OF <br /> 35% MVET TRANSFER ALONG WITH THE 3 CENT GAS TAX. IT IS UNLIKELY <br /> THAT THE. HOUSE WOULD SUPPORT ANYTHING ELSE. WE STILL NEED A <br /> BILL WITH STABILITY AND ONLY MVET PROVIDES THAT STABILITY. <br /> F. SOLID WASTE. <br /> The House version (HF 2069 ) of the Comprehensive Waste <br /> Reduction and Recycling act was passed out of the House <br /> Environment Committee minus the beverage container deposit <br /> legislation but still containing the container packaging tax and <br /> the ban on certain plastic containers. The bill now rests in <br /> the House Appropriations Committee and still contains the <br /> mandate for mandatory curbside recycling by 1990 for all cities <br /> over 5, 000 population in the metro area. <br /> -3- <br />