Comprehensive Transportation Budget Addresses Long-Neglected Roads and Bridges

The governor’s budget recommendations for transportation include a comprehensive funding proposal which would invest $6 billion over the next ten years to address the state’s highway funding deficit, invest $2.356 billion in local government transportation projects, and provide $2.92 billion for Metro and Greater Minnesota transit systems. The governor’s plan would also require MnDOT to generate efficiencies of 15% from all new revenues, allowing the Department to do $6 billion of work for $5.38 billion in new funding.

The governor proposed a 6.5% wholesale gross receipts tax, increasing the vehicle registration tax rate from 1.25 to 1.5%, and $2 billion in trunk highway bonds over the next 10 years. Together, this would provide an additional $5.38 billion for the state’s roads and bridges. A total of 40% of this funding ($2.356 billion) would go to county, city and townships, giving them flexibility to use that funding for their own local roads and bridges.

The proposal would also increase the metro area sales tax by a half cent to raise $2.8 billion for transit funding, which would build out bus services and meet the needs of a growing population. Additionally, the proposal would invest an additional $120 million for Greater Minnesota transit from the general fund.

Senate DFL Media