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� ��' � � Public Works De�artment/Engineering emo To: city council �. From: Duane Schwartz, Public Works Director'� ,'i �. �� . .�.. Date: Ol/19/2006 Re: Legislative Transportation Funding/4tl�er Issues Date: O1/23/06 Item: 2.c Transportation Funding It is a bit early yet this year, as the sessions begin in March, to detern�ine what proposals will be floated before the legislature regarding permanent dedicated transportation fundin�;. The recently released governor's bonding bill proposal included a nt�r��be�r of transportation project specific func�ing requests. None of the recommended proj ects are specific to the Roseville area Numerous proposals to increase transportation spending were introduced to the legislature in 2005. Ultimately, a bill was passed by both houses to increase the gas tax. This ��€ was supportedby the League of Cities and the counties. The governor vetoed the bill. The City's share of gas ta�� revenue continues to decline due to population increases outside of Roseville and the expansion of the metropolitan area It is unclear whether the gas tax proposals v;��€ be revived this session. ��' v� keep Council apprised of developments in this area as the session begins. The Council may wish to voice their position on this issue at some point. The other issue that is alive this year relates to a bill that was passed in 2005 requiring a referendum on permanently dedicating 100% of vehicle excise taxes to transportation. This will be on the ballot this fall for all voters to weigh in on. The new vehicle excise ta�� generates about 600 million dollars annually. Currently, approximately 50% goes to transportation, with the remaining amount going into the general fund. The referendum would dedicate 40% of the tax to transit and 60% to highway funding. This would help to alleviate some of the funding pressures and backlog of highway proj ects. The Transportation Alliance, of which the City is not a current member, is looking for support in getting the word out promoting these changes. The County may want to create a position on this referendum if they support the dedication of the excise taY to transportation. Another issue that is being fought by a coalition called the Minnesat� Alliance for safe Highways is a measure promoted by the trucicing indusiry to allow heavier and longer trucks on our roads. There is an impact to both safety and our ��x�n� if restrictions are relaxed. See attached information (Attachment A) for more background on this effort. • Page 1