Gov. Dayton's 2 proposals to pay for roads, bridges and transit

- Minnesota lawmakers are entering the final week of the session without a compromise on transportation spending, so Gov. Mark Dayton is proposing two options. One option would include a 5-cent gas tax increase, and the other would not raise the gas tax, but would rely on increased tab fees and existing general fund sources.

Proposal 1

General fund expenditures: $200 million per year
5 cent gas tax increase: $150 million per year
Increased vehicle tab fees: $250 million per year
Half-cent metro-area sales tax for transit: $280 million per year
Total funding per year: $600 million for roads and bridges, $280 million for transit
Total funding per 10 years: $6 billion for roads and bridges, $2.8 billion for transit

Proposal 2

General fund expenditures: $200 million per year
5 cent gas tax increase: $0 per year (no gas tax increase)
Increased vehicle tab fees: $400 million per year
Half-cent metro-area sales tax for transit: $280 million per year
Total funding per year: $600 million for roads and bridges, $280 million for transit
Total funding per 10 years: $6 billion for roads and bridges, $2.8 billion for transit

“Compromise requires us to agree to things we don’t agree with,” Gov. Dayton said in a statement. “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."

House Republicans have offered a transportation compromise that uses the existing sales tax on car parts to become a portion of a new dedicated funding stream for roads and bridges. The House GOP plan would create a Transportation Stability Fund as a dedicated revenue source. Rep. Kelly says the GOP offer would provide $6 billion for roads  and bridges during the next ten years. The DFL’s Senate Transportation Chair, Scott Dibble called it a non-responsive offer to the Senate’s concessions and a recitation of past positions on transportation funding.


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