Transit and High Speed Rail

Issue

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

Policy

The Minnesota Chamber supports investment in the state transportation infrastructure to keep Minnesota competitive in the safe and 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. Our focus in 2012 will be to ensure that future transit planning does not neglect ongoing operational costs.

Specifically, the Chamber will:

• Support the phase-in and ultimately the complete use of the sales tax on leased vehicles for transportation purposes. A portion of the leased vehicle taxes is currently spent on Greater Minnesota transit and county roads in the metropolitan areas excluding Hennepin and Ramsey counties. Greater Minnesota transit serves 75 of our 80 nonmetro counties at a cost of $54 million in 2008 and a projected $147million in 2020. County roads in the metropolitan area have rapidly become key corridors for both passengers and freight and will continue to need additional funding. Shifting all revenue from leased vehicles to fund Greater Minnesota transit services and metropolitan county roads will enhance both. The low-income fuel tax credit should be funded with general fund dollars.

• Protect state, general fund revenue dedicated to transit services. With the proven instability in motor vehicle sales tax revenue, it is crucial that legislators continue to identify transit services in both metropolitan and Greater Minnesota as priorities and fund them sufficiently through the general fund. Further, when future operating shortfalls on the existing system occur, or when new transitways are proposed, the Legislature must consider general fund revenue to pay operating costs.

• Oppose increases in state or local transit taxes. The 2008 Legislature significantly increased transportation funding. The Counties Transit Improvement Board was created and a 0.25-percent metro sales tax was created to build and fund new transitways. Increasing that tax or other transit revenue sources, especially now, will be detrimental to the competitiveness of our business climate and make Minnesota less attractive to new economic investment. Further, the Chamber supports the efforts of the metro area chambers and their partners as they investigate more efficient ways to spend money on the metro transit system with the goal of reducing the overall subsidy.

• Support the implementation of a comprehensive, data-driven, statewide passenger – and freight – rail plan. The plan must be developed by the professional staff of the Minnesota Department of Transportation with input from key private-sector and public-agency stakeholders, and the public.

• Support allocation of available state, regional and local dollars in passenger – and freight – rail projects. Worthy projects must be based on maximizing return on investment measured primarily by transportation output, in passenger miles, per public dollar invested. Passenger rail projects should include those serving commuter, regional and longer distance passengers. Higher-speed rail development projects should not preclude or pre-empt – by reason of cost or other assumptions – other high-value passenger rail investment opportunities in Minnesota.

Business Impact

Transit is a necessary component of Minnesota’s transportation system. Many individuals, employed across the state, rely on transit to get to and from their jobs, while others choose to use it. Further, transit provides businesses with benefits including reduced congestion and cleaner air in urban areas. To maximize the benefit, transit systems must be built to best service the distinctive needs of a particular region’s traveling public and with ongoing operating costs in mind from the beginning.