On January 20, 2020, the Minneapolis Star Tribune ran an article entitled “How to pay for roads and bridges? Funding battle to continue at State Capitol”. In response, Senator Scott Newman (R-Hutchinson), chair of the Senate Transportation Finance and Policy Committee, issued the following statement:
“I would again offer the governor my proposal to comprehensively fund our transportation needs without a gas tax increase:
- Continue the current, constitutionally dedicated funding stream – but take great care to spend it only on our state’s transportation needs;
- Make responsible use of both general obligation and transportation bonds;
- Redirect the existing sales tax on auto parts into a statutorily dedicated account to be used on the actual construction of roads; and
- Increase the share of general fund money that goes to our transportation needs – currently between 0.5 and 0.7 percent – to between 1.5 and 1.75 percent.
“I will not support the governor’s wildly unpopular proposed gas tax increase because I am simply not inclined to support more constitutionally dedicated funds given the continued lack of transparency and accountability from our state agencies, including the Department of Transportation (MnDOT).
“Minnesota’s current gas tax hovers right around the nationwide average – but with the governor’s proposed increase and our current sales taxes on motor vehicles and license plate tabs, Minnesota would be near the front of the line in terms of transportation-related taxes.
“As reported by the nonpartisan Office of the Legislative Auditor (OLA), ‘leakage’ from the constitutionally dedicated transportation money occurs frequently. Frankly, I believe that money has become a slush fund for bureaucrats to raid as the definition of a ‘highway purpose’ has been stretched to such incredulity that they are not being spent on transportation infrastructure.
“In fact, included in the governor’s proposed 20-cents per gallon gas tax increase last year was to pull $460 million out of the transportation fund, instead spending it on various government programs not related to transportation. And in 2019, Senate Republicans proposed spending $180 million in existing gas tax revenue on statewide road construction; instead, the governor chose to spend the funds in other budget areas rather than on roads and bridges, which is where the gas tax revenue should be going.
“So, why would I support a gas tax increase if the funds are ultimately spent on something other than our roads and bridges?
“Currently, it’s those who drive vehicles that almost exclusively support our transportation system through the gas tax, sales tax on vehicle sales, and license plate tab fees. However, all Minnesotans benefit from a robust transportation system, whether they drive a vehicle or not. Spending a reasonable amount of general fund money means those who benefit, but do not drive, can still contribute to our transportation network.
“I believe my plan is fair to all Minnesotans, will provide the necessary, ongoing funding stream, and provides for increased legislative oversight within our transportation network.”
Respectfully submitted,
Senator Scott Newman
State Senator (District 18)
Senator Scott Newman represents communities in McLeod, Meeker, Sibley, and Wright counties in the Minnesota Senate. He serves as chair of the Senate Transportation Finance and Policy Committee.