16-cent-a-gallon Gas Tax Center Of Transportation Plan

Zelle

Minnesota motorists would pay at least 16 cents a gallon more gasoline taxes under Gov. Mark Dayton’s transportation funding proposal.

They would pay slightly higher motor vehicle license fees and $10 more to register a vehicle. Also, a half percent sales tax increase would be applied in the Twin Cities for transit needs.

Dayton announced Monday that he wants Minnesota to spend about $11 billion more in the next decade to improve the state’s roads and bridges and boost transit.

The Dayton administration indicates that those in greater Minnesota would pay about $15 a month for his plan while in the Twin Cities the cost would be closer to $24.

“Inadequate transportation clogs our lives with worse traffic congestion, longer commutes, more dangerous travel conditions,” Dayton said. “These deficiencies restrict our future economic growth and detract from our quality of life.”

The Democratic governor was critical of Republicans for refusing to raise taxes for transportation.

“It takes some political courage” to approve tax increases, he said.

The governor said that Republicans appear to want to solve the transportation situation is “waving a wand and saying ‘abracadabra.'”

However, the Republican chairman of the House transportation committee said that his committee will need time to assess transportation needs, which may not be completed until next year.

“I look forward to a long-term solution over the next two years,” Rep. Tim Kelly of Red Wing said.

Kelly already has laid out what he calls a temporary fix, which Republicans want until a long-term funding bill can be prepared.

The chairman said there probably is not enough time during this legislative session, which must end May 18, to fully understand transportation needs and funding alternatives.

At least for now, Kelly said, “we can address the problem with funding that is already there.”

Senate Minority Leader David Hann, R-Eden Prairie, was critical of Dayton.

“Gov. Dayton is showing once again he is either unwilling or unable to set priorities in the state budget, and instead resorts to massive new taxes on lower and middle class Minnesotans,” Hann said.

Sen. John Pederson, R-St. Cloud, said the Dayton tax-increase plan comes “the minute working families begin to see some relief from high gas prices.”

Legislative Democrats generally liked the Dayton plan.

“Unfortunately, the proposal put forward by the Republicans in the Minnesota House fails to meet any of the standards necessary for Democratic support,” House Minority Leader Paul Thissen, D-Minneapolis, said. “While Gov. Dayton’s plan would be a bridge to the future, Republicans have offered Minnesotans a bridge to nowhere.”

Transportation Commissioner Charlie Zelle said half of the state’s highways are at least 50 years old, and 20 percent have three or fewer years of life left.

In addition to state highways, the Dayton plan increases funding for cities, counties and townships.

Greater Minnesota transit funds would increase $120 million in the next two years, with money coming from the state General Fund. Twin Cities transit needs would be funded by the higher sales tax.

The major part of the Dayton increase comes in a wholesale tax on gasoline. While it is different from the existing per-gallon tax, it would be felt much the same at the pump.

The tax would be 16 cents a gallon when wholesale prices are $2.50 a gallon or less. If wholesale prices go higher than $2.50, so would Dayton’s proposed new tax.

The wholesale price now is about $1.30.

The existing state gas tax is 28.5 cents a gallon and the federal tax is 18.4 cents.

Transportation officials did not say what specific projects that would be funded by the higher taxes.

Dayton’s plan depends on federal funds, which have yet to be appropriated.

The governor pledged to find $600 million from the Minnesota Department of Transportation doing things more efficiently.

St. Paul Mayor Chris Coleman, a leader of a city coalition seeking more street funding, said the Dayton plan is a good start, but does not give cities enough to fix their streets. And, he added, it does not help cities smaller than 5,000 population.

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 Transportation funds

Money in Gov. Mark Dayton’s transportation plan would be divided over 10 years:

— $5.4 billion for state roads and bridges

— $2.4 billion for cities, counties and townships

— $2.8 billion for Twin Cities transit

— $120 million for greater Minnesota transit

— $75 million for bike and pedestrian paths and the Safe Routes to Schools program.