Dayton Vetoes Transportation Finance Bill
06/08/2011
From Dave Van Hattum, Policy & Advocacy Program Manager
Reacting to the $117 million gap between his own and the legislature’s biennial transit budget, Governor Dayton vetoed House File 1140, the Transportation Finance bill.
In a letter to House and Senate leadership, Governor Dayton explained his veto, stating:
“I believe that providing comprehensive and reliable transit services, both in the Metro area and in Greater Minnesota, are essential components of the transportation system in Minnesota. Transit services improve labor market efficiency, freeway performance and air quality in the metro area, while sustaining economic vitality in Greater Minnesota. The draconian cuts to transit in this bill are unacceptable to me.”
The larger state budget impasse, estimated at $5 billion, revolves around the general fund (i.e. income tax, state sales tax, corporate tax, etc). While transportation (roads and transit) is a very small share of the general fund, public transit relies heavily on this funding source (19% of the operating budget in the metro and 30% in Greater Minnesota). Conversely, road funding in Minnesota receives virtually no general fund revenues and benefits from the stability of three constitutionally dedicated funding sources (gas tax, tab fees, and the motor vehicle sales tax). Current projections show road funding statewide increasing $258 million over the next biennium.
Governor Dayton wisely recognizes transit’s role in a 21-st century, multi-modal transportation system. Transit plays a critical role in getting people to work and school (80% of transit riders are going to these destinations), in the efficient performance of our roadways (buses take up a small fraction of the space cars take to move the same number of people), and in contributing to cleaner air and water (transit riders, per mile of travel, emit about ½ the emissions of car travelers).
With no budget deal reached at the end of the legislative session, a special session and the possibility of a government shutdown (if no deal is reached by June 30th) loom. TLC supports Governor Dayton’s plan to increase income taxes for the wealthiest Minnesotans in order to continue to fund key state investments. Over the next month, it is imperative that transit riders and supporters let their legislators and Governor Dayton know of the importance of buses and trains to the quality of life in their communities and for all Minnesotans.





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Posted by: Finance Dissertation | 06/11/2011 at 07:17 AM