Lawmakers plug transit shortfall

Transportation funding bill is “good news,” says Bell

A transportation funding bill passed by the Minnesota Legislature and signed by Gov. Tim Pawlenty will keep the region’s trains and buses running on time.

The measure plugs a $62.4 million hole in the operating budget for the coming two years to fund current and committed transit service. This includes the startup this fall of the new 40-mile Northstar commuter rail line, as well as new bus rapid transit (BRT) service on I-35W and Cedar Avenue.

“This bill is good news for transit customers and motorists alike,” said Peter Bell, chair of the Metropolitan Council. “It will enable us to continue improving our transit system, growing ridership and easing traffic congestion.”

He added that he is “optimistic that we can avoid any debilitating fare increases or service reductions.”

The main cause of the budget shortfall is a continuing decline in revenues from the Motor Vehicle Sales Tax (MVST), a major source of transit funding. “Understandably, in the current economic climate, many people are deferring major purchases such as new cars,” Bell said.

Measure relies on mix of funding sources

State lawmakers, faced with a massive budget shortfall of their own, actually reduced state general fund appropriations for transit by $12.76 million for the next biennium, which begins July 1.

However, they provided $41.8 million in new resources for transit through a combination of largely short-term fixes. These include temporarily shifting Council property tax levies from existing grant programs to transit.

The Council will be able to cover the remaining $33 million of the shortfall by using federal stimulus dollars for certain capital expenses, drawing down reserves and achieving operational savings.

All transit customers will benefit

The transportation measure helps fund Metro Transit, the region’s largest transit provider; Metro Mobility, which provides service for persons with disabilities; and suburban and community-based transit services.

“The funding measure isn’t perfect – it relies heavily on one-time money,” Bell said. “So we have to hope our economy rebounds quickly.”

Many people thought the region’s transit funding problems were solved in 2006, when the voters approved a constitutional amendment dedicating 100% of MVST revenues to transportation. When fully implemented in 2012, 60% of the revenues will go to highways and 40% to transit (36% for the metro area and 4% for Greater Minnesota).

Thus far, however, the amendment is turning out to be simply a bigger slice of a rapidly shrinking pie. In the current fiscal year, regional transit is projected to receive $113.5 million in MVST revenues, nearly $11 million less than it did in 2003.