The Minnesota Senate on Thursday passed a transportation budget bill that provides funding for critical transportation infrastructure but also contains $2.7 billion in tax increases – including tab fee and vehicle registration taxes, an increase to the metro area sales tax, and motor vehicle tax hikes. The tax increases are part of Democrats’ $10 billion tax increase agenda, which they are seeking despite the state holding a record $17.5 billion budget surplus.  

“There are a lot of good things in the transportation bill, including provisions I have authored and worked on for many years,” said Senator John Jasinski (R-Faribault), the lead Republican on the Transportation Committee. “Provisions I authored like dedicated funding for small city and township roads, or the desperately-needed support for our deputy registrars, and much more are all extremely important. But there are also a lot of things I am deeply concerned about, nothing more so than raising taxes by $2.7 billion when Minnesotans are struggling with inflation. I voted in favor of this bill for one reason, and one reason only: to participate in a conference committee with the House of Representatives, so I can keep working on the bill and make it better for Minnesota. We still have an opportunity to build a bipartisan transportation bill that funds roads and bridges throughout the state, without raising taxes on Minnesotans.”

SENATOR JASINSKI’S PROVISIONS THAT WERE INCLUDED IN THE BILL

Senator Jasinski successfully added several important bills he worked on this year to the transportation bill, including:

• Dedicated funding for small city and township roads. This is a provision Senator Jasinski has worked on in the past as well. Small cities and townships have never had this dedicated funding like this before, and Senator Jasinski is committed to getting it across the finish line.
• Support and funding for deputy registrars, as recommended by the Independent Expert Review. Deputy registrars have been shouldering more and more of the burden for complex and time-consuming transactions. Many of these mom-and-pop businesses are struggling financially, and the improvements in this bill will make their lives easier.
• Funding for a badly-needed new helicopter for the State Patrol, as well as a new airplane to replace two aging ones.
• Authorizing online driver’s education.
• Additional ongoing funding for Corridors of Commerce, a program that has been used to undertake major transportation infrastructure projects around the state.

OTHER BIPARTISAN PRIORITIES

The bill includes funding for several bipartisan priorities, including Safe Routes to Schools ($20 million, plus an ongoing annual appropriation); Corridors of Commerce ($5 million annually); Small cities and large cities road assistance ($81.18 million each); Local Road and Bridge improvements ($45 million each); school bus safety ($50,000); Support for deputy registrars, and a state match to secure federal Infrastructure Investment and Jobs Act (IIJA) funding. 

During the floor debate, the Senate also adopted an amendment to name an overpass in Glenwood to honor fallen Pope County Deputy Josh Owen, who ho was tragically killed while responding to a call on April 15.

MASSIVE TAX INCREASES DESPITE MASSIVE BUDGET SURPLUS 

Despite the largest surplus in state history, Democrats are proposing roughly $10 billion in tax increases spread across their budget bills. In the transportation bill, Democrats propose raising $2.7 billion in taxes:
 

• $901.81 million: 8% increase to the vehicle registration tax. The bill also slows the vehicle depreciation schedule, so people could pay up to 33% more every year 
• $223 million: Increasing license tab fees. This is a $7.50 fee per transaction, so everybody will pay more 

• $214.8 million: Increasing the motor vehicle sales tax 
• $1.397 billion: Increasing the metro area sales tax. 83% of this revenue would be used for metro transit, while only 17% would be used for metro county roads. Collar suburbs will be shortchanged by this provision — they would pay the additional tax but receive very little funding back because most metro transit is in the core cities of Minneapolis and St. Paul. 
• $59.90 million: Additional taxes and fees that go to the state of Minnesota 

REPUBLICAN AMENDMENTS TO IMPROVE THE BILL 

Senate Republicans offered a series of amendments to further improve the bill. These amendments were not added to the bill.
 

• Senator Jasinski offered an amendment to delete all tax increases and instead fund the bill using general fund dollars.
• Senator Jasinski offered an amendment to accelerate the full phase-in of the existing auto parts sales tax dedication to roads and bridges.
• Senator Jasinski offered an amendment to provide additional funding for small city and township roads, using funding from a light rail project and the Northern Lights Express passenger rail train.
• Require a county referendum on the proposed metro area sales tax increase, so voters can have their voices heard. This amendment was rejected
• Prohibit tax increases from being used to fund light rail projects, specifically the failed Southwest Light Rail line. This amendment was rejected
• Redistribute the earmark for White Bear Township evenly among townships around the state to make the bill more fair. This amendment was rejected