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Governor's transportation plan called "bait and switch" Anne Finn Transportation advocates say the real trouble began two years ago when the governor reduced license tab fees, This reduction created a gap in the trust fund that was backfilled with a statutory dedication of 32 percent of the motor vehicle sales tax (MVST), Now. in an effort to balance the state's budget, the governor wants to reduce the MVST transfer to 6 percent and raise the gas tax by 5 cents to replace the MVST transfer. Although the proposal basically holds transportation harmless. many oppose it. Under the plan. the first gas tax increase in 13 years would provide no net gain for transportation. Tr.ms- portation funding committees in both the House and Senate held hearings last week. Advocates and legislators made it clear that raising a "user fee," and not directing it to roads and highways, is not politically palatable, Long-time supporters of a gas tax increase are calling the governor's plan a case of "bait and switch."The question remains, though, whether this opposi- tion will translate into a gas tax increase for transportation purposes. The following is a surrunary of the governor's transportation-related budget reduction policy initiatives: . 5-cent gas tax increase effective March I, 2002, used to reduce general fund motor vehicle sales tax dedication &om 32 percent to about 6,5 percent. . Index gas tax for inflation. ba.~ed on changes in CPI; first adjustment effective June I, 2003. . Refinance $245 million of FY 2000 general fund appropriations for bottleneck and interregional corridor projects using trw1k highway bonds, . Refinance $245 million of trunk highway bonds paid by: I) revenues &om indexing the gas ta..'( (FY 2004 and beyond); 2) Operational and administrative budget reductions of $2.5 million per year (FY 2003-2(05); and 3) General Fund transfers to the Trunk Highway Fund ofSl7,I mil- lion in FY 2003 and $ t 6.5 million in FY 2004 to fully fund debt service in these years. . Surrunary of overall savings to General Fund: FY 2002-2003: $422 million FY 2004-2005: $306 million Ongoing: $156 to $ t 70 per year Capital illYestments in transportation The governor's bonding recorrunen- dations released last week included some dollars for transportation projects, The transportation component included: $120 million for N orthstar Corrunuter Rail, S50 million for a dedicated busway, $10 million for a bus garage. $30 million for local bridges and $ 1. 2 million for forest roads and bridges. The proposal also calls for $23.5 million for MnDOT facilities fiom the Trunk Highway Fund. In light of the state budget deficit and an array of pressing issues. trans- portation advocates admit a long-term funding solution may be hard to obtain this year. On a more optimistic note, the capital investment bill provides a great opportunity to infi.1Se funds into local transportation systems. It may also allow advocates to establish and fund a local road program to address unique needs. The key to success will be engaging your 10callebris1ator in a discussion regarding projects that could be funded through the Local Bridge Program, or by committing more funds to the Highway Turnback Account, or by funding a Local Road Program. By providing information on construction, building, and transit projects that could get done th!s year with additional funding. you assist in advocating for transportation. .. Note: The Minnesota Transportation AIlialICe contributed to this article. The sllmmary of the Governor's transportation- related blldgct reduction policy initiatives IvaS prepared by the Minnesota Dept, <if -rrallSportation (Mn/DOT), Page 6 LMC Cities Bulletin