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<br />. <br /> <br />.. <br />AHociation of <br />Metropolitan <br />Municipalities <br /> <br />February 10,2006 <br /> <br />Mayor Beverly Aplikowski <br />City of Arden Hills <br />1443 Bussard Ct <br />Arden Hills, MN 55112-3628 <br /> <br />Re: Constitutional Dedication of the tviotor Vehicle Sales Tax <br /> <br />Dear Mayor Aplikowski: <br /> <br />. <br /> <br />In 2005, the legislature passed a proposed constitutional amendment that would <br />dedicate 100% of the existing motor vehicle sales tax (MVST) to the highway user <br />tax distrihution fund. Previous legislation has already dedicated this money to <br />highway and transit funding under state statute, but as a result of budget shortfalls <br />preceding administrations have used the money to balance the budget. Placing the <br />motor vehicle sales tax in the highway user fund through a constitutional amendment <br />would ensure dedication of the funds. <br /> <br />The current proposed amendment, which is enclosed, would take at least 40 percent <br />of the revenue generated by the existing motor vehicle sales tax and dedieate it to <br />transit statewide, and would dedicate no more than 60 percent of the funds towards <br />highways statewide. The conversion of money from the general fund, where it had <br />previously been rerouted, will take place over five years being fully phased in by <br />2011. <br /> <br />There are three issues that have made the Constitutional dedication controversial. <br />First, the amendment language does not guarantee a fixed amount for roads. Second, <br />there is concern that the public will consider the problem to be "fixed" if they vote for <br />the amendment, when we know that the MVST amendment will only provide about <br />25% of the funding necessary to maintain our current level of congestion. And <br />finally, the dedication of MVST to transportation financing will create a hole in the <br />general fund. Critics consider these issues to be fatal flaws and are campaigning <br />against the amendment as it is written. <br /> <br />None of these issues, either singularly or in combination is sufficient reason to oppose <br />the amendment. While critics argue that roads will be left out, each biennium <br /> <br />. <br /> <br />145 University Avenue West <br />Saint Paul, Minneso/a 55103-2044 <br />Telephone: (651) 215-4000 <br />Fax: (651) 281-1299 <br />E-mail: amm@amm145.org <br />