Issue

How do we ensure that Minnesota’s transportation infrastructure meets the needs of Minnesota’s diverse economy and that Minnesota is getting the greatest value for its transportation dollars?

Policy

The Minnesota Chamber supports investment in the state transportation infrastructure to keep Minnesota competitive in the efficient movement of people and goods. An effective infrastructure must include a modern system of roads and bridges, transit, air, rail and waterways. The extent of the Chamber’s support was evident in the 2008 transportation funding increase. In addition to that new funding, the Chamber also wants to ensure that the state receives the greatest value for every transportation dollar invested in its infrastructure.

Specifically, the Chamber will:

• Oppose increases in transportation revenue. The 2008 Legislature significantly increased transportation funding. The fuel tax increase as a result of that legislation has placed Minnesota in a comparable range to neighboring states. Any additional increases in either the fuel tax or the metro sales tax will be detrimental to the competitiveness of our business climate and make Minnesota less attractive to new economic investment.
• Support the current dedication of the sales tax on leased vehicles for transportation purposes: Over the next 10 years, the total estimated revenue from sales tax on motor vehicle leases is projected to be $113 million. Metro Transit already is predicting a $40 million deficit for the next year and without adequate funding of the transit bus service, federal funding may be in jeopardy. The statutorily dedicated funding from leased vehicles must continue to be dedicated to transportation.
• Support greater flexibility in mandates found in the 2008 transportation funding bill and promote more balanced investment of new revenues: The Chamber is concerned that mandates associated with the new bridge program in the 2008 funding bill may be overly aggressive and will result in all new revenues going to bridges and maintenance, thus leaving little or no new money available for new highway construction. The Chamber urges the Legislature to carefully review the new bridge program – and all mandates in the 2008 bill – and provide the Department of Transportation (MnDOT) additional flexibility to allocate new funding resources to new highway construction projects.
• Support the ability of the Department of Transportation to use design-build contracting: In order to receive the greatest value for every transportation dollar, the Department of Transportation needs a variety of contracting methods. The Chamber supports the expansion of different contracting forms and opposes any attempt to limit the use of design-build and other innovative methods of contracting.
• Support expanded use of tolls for additional capacity (HOT lanes): The Chamber supports the use of tolls to expand the capacity in corridors in which congestion can be shown to be positively affected.
• Support the findings of the Transportation Strategic Management Task Force as detailed in the final report:
  • Create a workgroup in 2009 to assess the value in MnDOT’s regional structure and allocation process.
  • Develop a continuous improvement process in MnDOT. The task force found evidence of resistance toward systematic change and that many key improvement projects became derailed.
  • Establish and use best practices for business operations at MnDOT. Internal barriers prevent innovative approaches to project delivery now. Tools like an internal design-build group, pilot projects and reward mechanisms for public employees will create a controlled environment where new ideas can be tested in a lower risk environment.
  • Provide financial accountability by addressing key gaps in the current system.
  • Strengthen leadership in program management and development.
  • Authorize MnDOT to implement pilot projects using different contracting methods and purchasing options.

Business Impact

Businesses rely on the transportation system to move freight efficiently and to get employees to work in a timely and safe manner. Growing congestion in the Twin Cities as well as safety issues on Greater Minnesota roads have created a significant problem for Minnesota businesses. The Business Barometer poll and the Minnesota Chamber member poll indicate that while transportation remains an important issue to businesses, the recent increase in transportation funding has made investing in the issue less pressing. The greater concern for the business community now is ensuring that transportation dollars are spent effectively and that the greatest value is received. Business cannot afford to have products or workers stuck in traffic, nor can it afford to invest the additional dollars inefficiently.