- Minnesota Cities & The League
- Governing & Managing
- Risk Management
- Legislative Action Center
- Training & Conferences
Gov. Dayton's proposed budget for the 2014-2015 biennium lacks a permanent funding increase for transportation infrastructure.
(Published Jan 28, 2013)
Transportation advocates were disappointed to see that Gov. Dayton’s budget proposal released on Jan. 22 incorporates only two of the funding mechanisms identified in a recent report from the governor’s Transportation Finance Advisory Committee (TFAC). Those mechanisms are a dedicated sales tax for transit, and $20 million in Transportation Economic Development (TED) grants.
In its Dec. 27 report, the TFAC had identified 13 transportation funding mechanisms that could be implemented or, in some cases, expanded to fill a growing gap between transportation infrastructure needs and available revenues. (See related article.)
Although the funds provided by the sources in the governor’s budget are needed, they may face uphill battles in the Legislature. Early indications are that a sales tax increase that is not established on an opt-in basis by local units of government may be unpopular. Further, the TED program is funded with bonds, and there is a strong possibility that the 2013 session will not yield a bonding bill.
For cities, the omission of permanent funding increases for roads and bridges is problematic. The governor’s budget does not include increases to the funding mechanisms that fund municipal state aid, nor does it provide new revenues for local roads.
In the weeks ahead, the League and other transportation advocates will work to persuade the governor and legislators that local roads and bridges are essential to a strong economy.
* By posting you are agreeing to the LMC Comment Policy.
Contact Anne Finn
Assistant IGR Director
(651) 281-1263 or (800) 925-1122