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legislature abolished the council's property tax levy for transit . 1.43 percent to the Department of Transportation for greater Minnesota transit assistance to replace revenue lost when the legislature prohibited using property taxes to subsidize greater Minnesota transit operating costs . Beginning in fiscal year 2004, 2 percent additional to be appropriated by law for transit in the metropolitan area . The remainder to the state general fund The additional revenue for transit was spent for the 2004-05 biennium to partially make up for reductions in appropriations for metropolitan and greater Minnesota bus service and partly to reduce the local responsibility for Hiawatha light rail transit operating costs. This revenue was made available by effectively reducing the state trunk highway fund's share of MVST revenue from 18.8 percent to 17.7 percent, while leaving the share of MVST revenue going to local state-aid funds unchanged. MVST Dedication 2002 2003 2004-07 2008 and after Highway user tax distribution fund (HUTDF) 30.86% 32% 30% 32% County state-aid highway fund 0% 0% .65% 0% Municipal state-aid highway fund 0% 0% .17% 0% Metropolitan transit fund 0% 20.5% 21.5% 20.5% Greater Minnesota transit fund 0% 1.25% 1.43% 1.25% General fund - . 69.14% 46.25% 46.25% 46.25% How MVST dedication may change The 2005 Legislature passed a transportation appropriations bill that contained numerous funding initiatives, including a proposed constitutional amendment that would gradually dedicate all MVST revenue to transportation by 2012. Governor Pawlenty vetoed the bill but the constitutional amendment will still go before the people in th~ 2006 el~~tiQ~;~~i~ce con~titutiona1..~ftP~pdments do not require tl;1~. ~... ~~. governor's approvaL! However, the 2006 Legislature could modify or withdraw' the;; amendment. . . . - . .. ~".-.. The proposed amendment provides that beginning in fiscal year 2008, 63.75 percent of MVST revenues would be dedicated to transportation, with the remainder going to the general fund. The transportation percentage would rise 10 percent each year until reaching 100 percent in 2012. These percentages would override the allocation of MVST revenues in current law. Of the transportation share, not more than 60 percent would go to the HUTDF and not less than 40 percent to public transit assistance. The actual percentages within these limits would be determined by the legislature. ,~ ~.. . The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative, legal, and information services to the entire House. House Research Department I 600 State Office Building I st. Paul, MN 55155 I 651-296-6753 I www.house.mn/hrd/hrd.htm