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legislature abolishcd the council's property tax Ievy for transit 1.43 percent to the Department of Transportation for greater Minnesota transit assistance to replace revenue lost vvh�n the legislature prok�ibited using �roperty 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 20�4-OS bienniurn ta partially make up for reductions in appropriations for metropolitan and greater Minnesota bus service and partly to reduce the local responsibility %r Hiawafiha light rail iransit operating casts. This revenue r�vas made available by effectively reducing the state trunk highway fund's sI�are of MVST revenue from 18.$ percent ta 17.7 percent, while leaving the share oiMVST revenue going ta loca� state-aid funds unchanged. MVST Dedication zooz zaa3 Zoo�-a� zoas and after Hi hwa user tax distribution fiind HUTDF 30.$6% 32% 30% 32% Coun state-aid hi hwa fi�nd 0% 0% .65% 0% Munici al state-aid hi hwa fund 0°/u 0% .17% 0% Metro �litan firansik fund 0% 20.5% 21.5% 20.5% Greater Min��esota transit fund 0% 1.25% 1.43% 1.25% General fund 69.14% 46.25% 46.25% 46.25% How MVST dedrecrtion may change � The 2005 Legisla�ure passed a transportation apprapriations bill that contained numerous funding initiatives, zncl�ding a proposed constitutional amend�nent that would gradually dedicaie all MVST revenue to transportation by 2a12. Goverr�or Pawlenty vetoed the bill but the cQns�itutional amendment will still go befor� the people in th� 2006 �iectio��; siz�ce constitutional a�nendanaents do not require the. � governor's approval.' �owev�r, the 2006 Legisla�ure could modify or withdraw �he �: amendment. .. : The proposed am�ndment pravides t�at begit�ning in fiscal year 2008, 63.75 perceni of MVST reven�zes wou�d be dedicated to transpartation, with the remainder going to the general fund. The transportation p�rcentage 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 wouId go to the HUTDF and nat Iess than 40 p�rc�nt to public transit assistance. The actual percentages wiihin these limits wauld be deiermined by the legislature. The Research Department o# the Minnesota Nouse of F�epresentatives is a nanpartisan office pro�iding I�gislative, legal, and inforrnatipn ser�ices io ti�e entire �[ouse. House F2esearch Depart€nent � 8Q0 State Office Building � St. Paul, MI� 55155 � 651-296-6753 � www.house.mnlhrdlhrd.htm