One of the first items of business today for the new legislative session was to effectively solve the infrastructure problems throughout the state. As we have discussed here and here, Tim Pawlenty offered up an unrealistic goal for using this years bonding bill for transportation when a comprehensive, long term solution, was sorely needed. It is good to see that the majority in the legislature has taken steps to solve this problem. Will the Republicans sign on or are we in for another obstructionist battle? Only time will tell...
State Senator Steve Murphy
325 State Capitol, 75 Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, MN 55155-1606
E-mail: sen.steve.murphy@senate.mn
Phone: 651-296-4264
State Representative Bernie Lieder
423 State Office Building, 100 Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, MN 55155-1606
E-mail: rep.bernie.lieder@house.mn
Phone: 651-296-5091
February 12, 2008
Safe road and bridge investment to create 33,000 jobs a year
State Sen. Steve Murphy, DFL-Red Wing, chair of the Senate Transportation Budget and Policy Division, and state Rep. Bernie Lieder, DFL-Crookston, chair of the House Transportation Finance Division, today unveiled the Safe Roads and Bridges Improvement Act, the 2008 omnibus transportation funding legislation.
“Addressing the safety concerns facing our state’s roads and bridges, along with providing an economic stimulus in the wake of the state’s recession, are top legislative priorities,” said Sen. Murphy. “That’s why this bill is being introduced and heard on the first day of session”
The bill will provide an $8.4 billion investment in the safety and efficiency of Minnesota’s transportation system over the next ten years. According to a Federal Highway Administration (FHWA) study on transportation investments, a bill of this size would create an average of 33,000 jobs a year for the next 5 years
“This bill is balanced, comprehensive and addresses the most pressing needs in our transportation system and our economy," said Rep. Lieder, a former county highway engineer.
"This bill will allow us to fix the most critical bridges in our trunk highway system within 2 years. All 87 counties in the state will benefit, and there is a balance between state, county and city roads and bridges, a balance between rural and metro needs, and a balance between transit and highways."
The legislation includes $2.2 billion in trunk highway bonding. The bonding program is front-loaded, providing $500 million in each of the first 2 years. Of this amount, $300 million each year will be dedicated to repairing fracture critical trunk highway bridges through a tiered bridge-replacement program.
“Through this approach, the public will be guaranteed that the worst-of-the-worst bridges in the state are being fixed,” said Sen. Murphy.
Like last year’s transportation package, a 2.5-cent debt service surcharge is also included.
“We take the fiscally responsible approach to bonding by providing real dollars to pay off the interest on our transportation borrowing,” said Rep. Lieder.
The bill also includes components of the governor’s 2008 bonding proposals. The Legislature includes $50 million in bonding for local bridges, $10 million for local roads and $55 million for the state-match portion of the federal Urban Partnership Agreement grant in this transportation package.
“We agree with the governor that our local governments need state resources to begin to fix and replace their deficient bridges and improve the quality of their roads,” said Sen. Murphy. “We also thought it was necessary to fund the full state match of the Urban Partnership Agreement, so Minnesota does not lose this opportunity to capture federal funds for congestion relief in the metropolitan area.”
The bill also provides tax relief. Those over 18 in the lowest tax bracket will receive a $25 credit to offset the increase in the gas tax, which will begin to apply for Tax Year 2009. Additionally, this increased investment will relieve pressure on local taxpayers by providing additional resources for county highways and city streets.
“By providing local governments with more funding to use on transportation projects, we’re, in effect, reducing the property tax burden on their citizens,” explained Rep. Lieder. “This approach will also leverage funds for local and federal matches, which will allow more important construction projects to move forward.”
The bill includes a 5-cent increase in the fuel tax, along with indexing this increase for inflation.
“The gas tax is the user fee of Minnesota’s transportation mechanism, being constitutionally dedicated to funding our roads and highways,” explained Sen. Murphy. “By tying it to the Consumer Price Index, our gas tax will be linked to economic performance. We can thus avoid situations like we are in now, where there has been no revenue increase for 20 years.”
Like the 2007 transportation package, the bill also contains changes to the motor vehicle registration tax, a dedication of motor vehicle lease sales taxes to transportation and a half-cent metropolitan sales tax for local road and transit projects.
“This bill is well-balanced in its support for local roads, state highways and transit systems,” said Rep. Lieder. “We are serious about moving forward quickly with a comprehensive transportation package that invests in the safety of all components of our transportation infrastructure and boosts our economy, so we aim to have this bill on the governor’s desk as soon as possible.”
Both the Senate and House Transportation divisions will begin to hold hearings on the transportation package today.
For more information, you can contact Sen. Murphy’s office at 651-296-4264 or Rep. Lieder’s office at 651-296-5091.
