Senate Finance Committee approves Transportation bill to rebuild roads and bridges without a gas tax increase or new mileage tax

The Minnesota Senate Finance Committee on Tuesday 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 auto parts sales taxes to roads and bridges – a top priority of the Transportation Committee. The bill was passed by the Transportation Committee on Tuesday, April 5.  

“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 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.

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.

SECURING FEDERAL FUNDS FOR TRANSPORTATION

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 of funding is projected to be more than $5.7 billion over the next five years.

PROTECTING STUDENTS TRAVELING TO SCHOOL

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, confidently, and conveniently walk, bike, and roll to school and in daily life.

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. 

NEW HELICOPTERS AND AIRPLANES FOR THE STATE PATROL

The state patrol’s current fleet of helicopters and airplanes are nearing the end of their 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.

A FASTER, BETTER 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 several recommendations made by the independent review: Driver’s licenses would expire after eight years instead of four. It allows drivers to take more of their driver’s education instruction online. And the bill will make the DMV faster and more effective by mandating a minimum number of full-service facilities with consistent, reliable hours; requiring the department to publish real-time information about the availability and location of exam appointments; customer service improvements and moving toward more automation and online transactions. 

Students and parents will have an easier time finding exam stations and the materials they need to pass their tests. The pass/fail rate of driver training schools will be more transparent, so parents and students can be confident they are receiving good instruction.