New resources will help meet growing demand for transit

A $6.6 billion transportation funding bill enacted in February by the Minnesota Legislature will provide a major infusion of new resources for roads, bridges and transit – both in the metro area and statewide.

The bill increases the gasoline tax and motor vehicle license fees, which are constitutionally dedicated for roads and bridges. It also authorizes, but does not require, the seven metro counties to impose a one-quarter cent sales tax and a $20-per-vehicle excise tax for transit.

The bill will allow the metro counties that levy these taxes to establish a joint powers board to make grants for:

Capital improvements to bus and rail “transitways,” including the purchase of buses and rail vehicles.
Operating costs for transitways.
Transitway studies, design and property acquisition.
Capital costs for park-and-ride facilities.

The Metropolitan Council was not enthused about the idea of allowing for the creation of such a board, which might have transit priorities that conflict with those of the Council.

However, the final legislation requires that all projects receiving grants must be consistent with the Council’s long-range Transportation Policy Plan. In addition, the chair of the Council will be a voting member of the joint powers board and the chair of the Council’s Transportation Committee will serve on the board‘s grant evaluation panel.

If all seven counties impose the tax, this legislation will generate about $110 million a year in additional resources for transit. This will help fund the state-local match for the Central Corridor light-rail transit line and other projects in our long-range transit plan.

More immediately, the law provides a one-time $30.8 million appropriation to eliminate a projected shortfall for bus and rail transit operations, and fund the startup costs for the Northstar commuter rail line. This will allow us to continue to grow transit ridership – which reached a 25-year high in 2007 – and slow the growth in traffic congestion.

Peter Bell

March 2008