ST. PAUL, MN – Governor Mark Dayton and his Administration worked throughout the weekend to develop two compromise transportation proposals that would break the stalemate at the Capitol, and fix Minnesota’s aging, underfunded transportation systems. One compromise offer would include a 5-cent gas tax increase, increased tab fees, and existing General Fund revenues. The other proposal would not raise gas taxes, but would rely instead on increased tab fees and existing General Fund revenues.

 

Each proposal would generate $600 million per year for roads and bridges (including $240 million in annual, ongoing funding for cities and counties to make local road and bridge improvements), and provide dedicated new revenues for Metro-area transit, paid for only in Metro-area counties.

 

“Compromise requires us to agree to things we don’t agree with,” said Governor Dayton. “That is the only way to pass a transportation funding bill this session. Minnesotans everywhere need better highways, roads, bridges, and transit. They are telling us to 'Get it done.' That responsibility now falls upon all 201 legislators. I urge their support to pass this transportation funding bill."

 

"Over the last months I have talked with county commissioners, mayors, business owners, and local chambers of commerce all across Minnesota about our transportation needs, and how to pay for them. They all say the same thing: fixing Minnesota's transportation challenges isn't a partisan issue, it's an economic issue,” said Lt. Governor Smith. “Today, Governor Dayton has offered a balanced compromise that takes some ideas from each side. The Governor has compromised; now it's time to get it done, for the good of all Minnesotans.”

 

With just seven days remaining in the 2016 Legislative Session, and only six days in which the Legislature is constitutionally authorized to pass bills, Governor Dayton is urging legislators to act quickly to enact a compromise transportation solution. The Governor’s two proposals, which are detailed below, include ideas supported and passed by the Minnesota Senate and House of Representatives.

 

 

Sixteen months ago, Governor Dayton proposed his detailed plan to fix Minnesota’s aging, underfunded transportation systems. That proposal included a 16-cent gas tax increase and increased registration fees. It would have provided $600 million per year for roads and bridges, delivered needed funding to cities and counties for local transportation improvements, and dedicated funding for Metro-area transit improvements paid for only in Metro-area counties. The Minnesota Senate passed a similar proposal.

 

The Minnesota House of Representatives passed legislation that would provide $300 million per year for roads and bridges. It did not provide additional funding for cities and counties for local transportation improvements, and did not include funding for transit improvements. That plan relied exclusively on General Fund revenues and state borrowing.

 

The attached chart details how the Governor’s two compromise proposals compare to existing transportation proposals offered by the Governor, Senate, and House of Representatives.

 

Minnesota is facing a $6 billion transportation funding deficit over the next ten years. The state’s transportation deficit will begin to take hold in 2018, when annual state road and bridge funding is projected to decline by 45 percent, severely eroding Minnesota’s ability to maintain and improve the conditions of our aging, under-funded transportation systems. Here is what you need to know:

 

·        $600 Million – Minnesota needs $600 million in new revenues each year, for the next ten years ($6 billion), in order to maintain and improve our state’s roads and bridges.

 

·        45 Percent Decline in Funding – Without legislative action, funding for Minnesota’s roads and bridges will decline by 45 percent, starting in 2018.

 

·        Aging Roads and Bridges – Right now, more than half of Minnesota’s roads are more than 50 years old. Over 40 percent of the state’s bridges are more than 40 years old. In just the next three years, one in five Minnesota roads will pass their useful life. And in the next ten years, nearly 40 percent of Minnesota roads will pass their useful life.

 

·        45 Hours Stuck in Traffic – According to MnDOT, the average Minnesota commuter currently wastes 34 hours stuck in traffic every year. If no additional investments are made in our transportation systems, by 2025 the average Minnesota commuter will waste an estimated 45 hours stuck in traffic.

 

·        80 Percent of Counties – Because of the state’s transportation deficit, 80 percent of Minnesota counties have had to raise local taxes to pay for transportation improvements. Under the compromise proposals introduced today by Governor Dayton, cities and counties would receive an additional $240 million per year in new revenues for transportation. Click here to see how much each city and county would receive.

 

 

GRAPHIC: See how Governor Dayton’s two compromise transportation proposals compare to his original transportation proposal, and the bill passed by House Republicans. [Link]

 

FACT SHEET: See how the two compromise transportation proposals offered today by Governor Dayton would work, and how they compare to existing transportation proposals. [Link]

 

FACT SHEET: See how tab fees would be impacted under both compromise transportation proposals. [Link]

 

DETAILED LOOK: Get a detailed look at how tab fees would be impacted under Governor Dayton’s compromise proposal #1. [Link]

 

DETAILED LOOK: Get a detailed look at how tab fees would be impacted under Governor Dayton’s compromise proposal #2. [Link]