Minnesota nears transportation funding boost

Minnesota state lawmakers are working out their differences on a transportation funding plan that would create revenue to repair roads and bridges.

The state has not increased transportation revenue since 2008. The action came months after the Interstate 35W bridge collapse in Minneapolis.

The Minnesota Department of Transportation says there is a $27 billion gap over the next 20 years that the legislature must help them address.

Two plans to address transportation funding

House lawmakers voted to approve an $8.8 billion transportation funding bill that would allow the state to move forward with spending for roads, bridges, and transit.

Sources of revenue tabbed in HF2887 include a three-quarter-percent metro-area sales tax increase to cover Twin Cities transit improvements.

A new 75-cent fee also would be added to all retail deliveries in the state. The fee, which is touted to raise up to $180 million annually, would be collected on everything from Amazon deliveries to food deliveries.

The Senate approved the bill after making changes that include a half-percent sales tax increase to raise about $615 million yearly. No delivery fee is included.

Both chambers agreed to include routing vehicle repair and replacement parts purchases to the state’s road fund. The money now is sent to the general fund.

Most vehicle registration fees, driver’s license fees, and new vehicle sales tax also would be increased.

The House version would earmark the biggest portion of funds – $194 million – for passenger rail linking Minneapolis and Duluth. Another $80 million would be used for “high priority” bridges. The Corridors of Commerce program would be allotted $50 million.

The Senate version would designate $350 million for the Corridors of Commerce. Another $200 million would be earmarked for state road construction projects.

Both versions include a requirement to study speed cameras and to prohibit holding a cellphone while driving.

The Senate version would clarify that drivers must move over for any vehicle stopped along the roadside with lights flashing.

State law now applies the protection to stopped emergency vehicles with flashing lights activated. Vehicles covered under the rule are ambulance, fire, law enforcement, maintenance, construction vehicles and tow trucks.

Next step

A conference committee made up of select lawmakers from the House and Senate are meeting to work out their differences before each full chamber would vote on the final version.

Time is running out to work out a deal. The regular session is scheduled to adjourn for the year on May 22. LL

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