Minn. Democrats to unveil transit funding plan; mum on gas tax hike
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The Democrats in charge of the state House and Senate transportation committees say next week they'll unveil a proposal for funding improvements to roads, bridges and transit throughout Minnesota.
Sen. Scott Dibble, DFL-Minneapolis, and Rep. Frank Hornstein, DFL-Minneapolis, announced their intentions today following a joint, informational hearing on the current transportation needs and funding challenges facing the state.
A gas tax increase or other revenue-raising measures will be tough to sell in an election year session, but Hornstein said the problems can’t wait.
“Transportation challenges and projects don’t go away, they just get more expensive,” Hornstein said. “So by procrastinating, we’re actually throwing money down the drain. That’s why these projects need to get done.”
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Dibble wouldn't talk about specifics, but he said he believes a “robust, comprehensive, multi-modal transportation funding package” is needed this year.
“I don’t know what the package is exactly going to look like, Dibble said. “We’re still figuring that out. But clearly we’re talking about putting resources on the table for the long term. They might be scalable.”
The committee chairs still need to convince Gov. Mark Dayton and DFL leaders to back their funding plan. Last week, House Speaker Paul Thissen, DFL-Minneapolis, said he didn't know if this was the year for a transportation funding bill.
Dayton’s transportation commissioner, Charlie Zelle, also has been looking at ways to bring in adequate funding. He told lawmakers on Monday that gas tax revenue has taken a hit from fuel-efficient vehicles and motorists who are driving fewer miles.
“The gas tax is becoming a smaller and smaller amount of that funding and causing us the greatest challenge,” Zelle said.
Zelle’s presentation highlighted several potential revenue options, including a sales tax on wholesale gas receipts as a way to hedge against inflation.
Several testifiers warned that the unmet needs in the transportation system are hurting the economy. But Rep. Michael Beard, R-Shakopee, countered that raising taxes as a way to meet those needs could also cause harm.
"Some of us recognize that increasing taxes is a drag on the economy," Beard said.
The state House and Senate transportation chairs will release details of their plan next Tuesday during a joint hearing.