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Transportation: Long-Term Funding & Program Efficiency

Issue

How can we fund our transportation infrastructure and transit operations to assure the safest, most cost-effective transportation system that will meet the economic and quality of life needs of our state?

Policy

Transportation infrastructure is a strategic investment essential to strengthening Minnesota’s economy. The state of Minnesota, together with the business community, should develop a long-term vision and funding structure to support the transportation infrastructure requirements necessary to allow Minnesota to stay competitive in a global economy.
  • The Minnesota Chamber supports a long-term transportation plan that is:
    • Accountable and efficient. Reform operations and policies to increase efficiency and effectiveness. Set aggressive standards for performance and report results. Support efforts to improve project delivery times through accelerated right-of-way acquisition, design build, municipal consent, improved transit operations, streamlined utility relocation, and expedited environmental review and permitting.
    • Statewide. For Minnesota businesses to stay competitive and to improve quality of life for all Minnesotans we need to ensure safe and efficient movement of people and products throughout the entire state.
    • Multimodal, addressing all modes of transportation including highways, transit, air, port and rail.
    • Project specific. The public should know specifically what it is buying with new revenue. Specific projects and a specific timeline should be identified for new revenues.
    • User-financed. New transportation revenues should come from user-based taxes and/or fees.
  • New revenue raised by the passage of the Transportation Amendment should be statutorily dedicated exactly how it was presented to the voters in the 2006 election: 60 percent to the Highway User Tax Distribution Fund; 40 percent to transit.
  • The Minnesota Chamber supports the following revenue options for consideration as part of a comprehensive funding package:
    • Trunk Highway Bonding. A portion of the new motor vehicle sales tax dollars should be used for trunk highway bonding to accelerate transportation projects throughout the state.
    • General obligation bonding.
    • Up to a 5-cent fuel tax increase.
    • A change in the vehicle tab fee depreciation schedule designed to raise up to $100 million.
    • Up to $100 million in new operating efficiencies.
  • The Minnesota Chamber opposes the following:
    • Transportation revenues that create a competitive disadvantage for businesses in different communities such as wheelage taxes and transportation utility fees.
    • Changes in transportation funding and dedicated funds that would reduce existing funding levels for either highway or transit operations.
    • Sales taxes or new general fund taxes for transportation.
    • ”Leakages” from the trunk highway fund such as Minnesota Department of Transportation (MnDOT) buildings. No trunk highway fund revenue should be used for nonhighway purposes, as directed by the State Constitution.
  • The Chamber supports the following:
    • Reducing state regulatory barriers for rail service to improve freight flow.
    • Use of voluntary toll lanes (FAST lanes/MnPASS) to relieve congestion and increase highway safety

Business Impact

Population and vehicle miles traveled have grown dramatically in Minnesota through our funding system has changed little over the past decade. According to MnDOT, we now face a backlog of badly needed transportation projects – both roads and transit. The Transportation Policy Institute examined information available from MnDOT and other government sources to determine the level of need that exists. According to studies of road and bridge needs, the state needs to invest an additional $785 million each year for reconstruction and some capacity additions. Its study of transit needs indicates that an additional $189.4 million is needed annually. This adds up to $974.4 million or close to $1 billion needed annually for the next 10 years to meet the needs.

Our increasingly global economy hinges on efficient supply chains and “just-in-time” manufacturing and delivery. Transportation is critical to doing both well. Business cannot afford to have products or workers stuck in traffic. The state’s economy is dependent upon our ability to move people and goods; thus transportation investments have a direct impact on the state’s economic well-being.

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