The Minnesota Senate on Monday approved a comprehensive transportation bill that will provide more than $5.7 billion in transportation funding, including more than $4.32 billion specifically for roads and bridges over the next five years, without a gas tax, mileage tax, sales tax, or license tab fee increase. The bill dedicates 100% of revenue from existing auto parts sales taxes to roads and bridges – a top Senate Republican priority. 

“Millions of Minnesotans depend on a healthy and robust transportation system every single day,” Committee Chairman Scott Newman (R-Hutchinson) said. “Senate Republicans have successfully pumped billions into transportation infrastructure since 2017. Now we have an opportunity to do so much more. This bill will allow Minnesota to continue creating a world-class transportation system without new gas taxes, tab fees, or mileage taxes.”

The bill continues Senate Republicans’ strong commitment to roads and bridges by providing an additional $982.98 million for state roads and bridges, $154.5 million for Corridors of Commerce, $303.59 million for County State Aid Highways, $79.75 million for Municipal State Aid Highways, and $69.1 million for town roads and $69.01 million for small cities assistance.

STABLE, ONGOING FUNDING FOR ROADS AND BRIDGES

The bill dedicates 100% of the existing tax revenue from the sale of auto parts to roads and bridges, providing an additional $550.08 million over the next three years and a stable, consistent source of funding for transportation infrastructure for the foreseeable future.

The bill also provides special funding for small cities and townships, each of which would receive an ongoing, dedicated funding stream of 7% of auto parts sales tax revenue for their road needs. Small cities under 5,000 residents currently receive no dedicated funding. Township roads receive very little dedicated funds. Both road systems are currently paid for with real estate taxes.

Approximately one-third of transportation infrastructure funding comes from the gas tax. The state faces a significant gap in transportation funding in the near future as vehicles become more fuel-efficient and more electric vehicles are sold. The change to dedicate tax revenue from auto parts to roads and bridges helps sustain this vital funding. A portion of auto parts sales tax revenue is dedicated to small cities and townships.

OTHER PROVISIONS

• SF 3494 (Kiffmeyer) Terminating Northstar. The Met Council must ask the federal government to cease service of the Northstar rail line, which has consistently fallen short of ridership goals and has been losing money for years.

• SF 3992 (Osmek) and SF 3859 (Chamberlain): Light rail and Bus Rapid Transit reforms. The bill blocks state funding for any new light rail projects and requires city councils to approve new light rail or bus rapid transit routes prior to construction. 

• Securing the state’s share of federal infrastructure spending. The bill provides $280 million in 2022-2023 to secure the state’s share of federal transportation funding allocated by the Infrastructure Investment and Jobs Act of 2021. Minnesota’s share is projected to be more than $5.7 billion over the next five years.

• SF 2898 (Jasinski) Purchasing new helicopters and airplanes for the state patrol. The state patrol’s current fleet of helicopters and airplanes is nearing the end of its useful life. The transportation bill provides $45.1 million to purchase three new helicopters and three new airplanes for the state patrol so they can continue safely performing critical functions like search and rescue operations, tracking carjackers and criminal pursuits, and transporting blood and organs in emergencies.

• Safe Routes to Schools. The legislation includes an additional $14 million for the Safe Routes to School program, which aims to improve safety and reduce traffic so Minnesota students can safely walk and bike to school.

• Cracking down on school bus stop-arm violators. An additional $12 million will be provided to finish equipping every school bus in Minnesota with outward-facing cameras to crack down on distracted and reckless drivers who ignore school bus stop arms. 

• SF 3582 (Newman): Fixing customer service issues at the DMV. The transportation bill makes good on several Senate Republican promises to improve Minnesotans’ visits to the DMV in the wake of a scathing independent review of the Department of Driver and Vehicle Services operations. The bill implements a number of the report’s recommendations.