CHICAGO — Minnesota Republicans March 23 proposed a $7 billion, 10-year partially bond-financed plan to fund transportation work without a tax hike.
"We think this is what Minnesotans have been asking for," said House Speaker Kurt Daudt at a news conference. "They've been telling us they want an investment in our road and bridge infrastructure, and they don't want a gas tax increase."
The plan is a rival to ones proposed by Gov. Mark Dayton and lawmakers from his Democratic-Farmer-Labor Party, who control the Senate. Those plans rely on a mix of higher taxes and fees. Republicans control the House.
The Republican plan would direct $3.1 billion into a new transportation stability fund over the next decade. The funds would come from existing vehicle-related sales and other taxes that currently flow to the state general fund. Another $1.3 billion would come from trunk highway bonds carrying a general obligation pledge, $1 billion in general obligation bonds, $1.2 billion from existing transportation department resources, and $228 million from the state's nearly $2 billion budget surplus.
Officials said the plan would repair or replace 15,500 lane miles and 330 bridges.
Democrats contend using general funds reduces revenue for schools and other state services while the GOP contends the state can afford the diversion given its surplus. Democrats also want more funding directed toward transit.
The governor's $6 billion plan would finance improvements to 2,200 miles of roadways and 330 bridges. Dayton's plan would generate $2.4 billion for local government projects and $3.4 billion for state trunk highway projects with another $2 billion coming from the issuance of trunk highway bonds. The projects would be paid for and the borrowing repaid with revenue from a 6.5% gross receipts tax on gasoline, by raising the current 1.25% base tax on vehicle registration fees to 1.5%, and by raising car registration fees by $10.
Another $2.8 billion would be generated to fund Twin Cities transit projects from a half cent sales tax increase in the region and another $120 million would come from the general fund to support transit projects statewide.
The state expects a nearly $2 billion surplus in its budget this year.
