FAQ About Transportation Policy

How does Minnesota’s congestion rank?
Minnesota ranks among the most congested metro areas in the country. Our congestion rate is growing faster than all but one metropolitan area. We are also one of only three states in which more than three-fourths of the urban highways are congested.

How much do we spend on transportation?
In 2003, Minnesota spent $3.4 billion on its transportation infrastructure including highways ($1.2 billion), transit ($500 million) and local roads ($1.7 billion). The state’s construction budget topped $1 billion for the first time in 2003 mainly due to Governor Pawlenty’s 2003 bonding program used to accelerate projects. However, this was a one-time funding boost, so by 2007 the construction budget dropped back to less than $600 million.

The main sources of highway funding are the state’s gas tax, motor vehicle registration fees, the motor vehicle sales tax and federal funding.

If transportation is such a high priority, why did the Minnesota Chamber support Governor Pawlenty’s veto of the transportation funding bill?
The Minnesota Chamber supports additional funding for transportation because we believe the safe and efficient travel of people and goods is important for the overall prosperity of the state. We do not support massive tax increases over one session to solve a 20-plus year funding problem. The 2006 transportation funding bill included a 7.5-cent gas tax increase, increase in license tab fees and sales taxes, and additional wheelage taxes. Taken together, these proposals were excessive and would have worked against the overall goal of keeping Minnesota an attractive place for jobs and economic growth. The Minnesota Chamber continues to support a more moderate funding solution.

How does Minnesota’s gas tax rank in relation to other states?
When compared to the national average, Minnesota is in the middle of the pack. However, our gas tax is lower than all our surrounding states, which varies from 21 cents (North Dakota) to 32.1 cents (Wisconsin). Minnesota’s gas tax was last raised in 1988 – from 17 cents to 20 cents per gallon. Since then, it has lost much of its purchasing power. If the tax were expressed in 1988 dollars it would only be worth 13.2 cents.

What is the Metropolitan Council’s role in transportation?
The Metropolitan Council plans for the long-term transportation needs of the metropolitan region. It also operates the transit systems in the Twin Cities. The council has prioritized six transit projects. The Minnesota Chamber supports the funding of those Tier 1 projects.

What is the Minnesota Department of Transportation’s role in transportation?
MnDOT develops and implements policies, plans and programs for aeronautics, highways, motor carriers, ports, public transit and railroads. It is the principal agency to develop, implement, administer, consolidate and coordinate state transportation policies, plans and programs. MnDOT also has jurisdiction over bus systems in Greater Minnesota.

Does the Minnesota Chamber support reforms at the Minnesota Department of Transportation?
Yes. There is more urgency than ever in maximizing the return on our transportation dollars because projects that get delayed become more expensive.

The Minnesota Chamber advocates exploring a variety of proposals, including:
Design-Build – For many years highway construction and design have been conducted by two separate entities. Design-Build is a process that combines these two tasks under one roof in an effort to accelerate project delivery and improve innovation and quality. The process was used on the reconstruction of Highway 52 in Rochester and is being used in the I-35W bridge replacement in Minneapolis.

Environmental streamlining – Current environmental review for transportation projects is often long and cumbersome, resulting in delays that can add years and additional cost to a project. A task force was created in 2002 to evaluate alternatives and make recommendations on streamlining the review.

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FAQ About Transportation Policy