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Minnesota is in line to get $133 million in federal funds for congestion relief - if state leaders can agree to provide matching funds. Some fear that's a big if.
The Twin Cities area is slated to receive $133 million to reduce traffic congestion, but some elected officials worry that government gridlock could force Minnesota to turn down the federal grant.
The concern is fueled by the state's transportation funding troubles and its history of last-minute head-butting at the State Capitol.
But political leaders hope that things will move more smoothly this time around.
The Twin Cities was one of only five metro areas nationwide to land a federal congestion-relief grant. It comes with substantial strings. The state needs to come up with $55 million in matching money -- and to do so within 90 days of the start of the next legislative session.
That means a deadline of May 12, a week before the 2008 session is required to end. Making the deadline would mean breaking from the recent tradition of handling important business in the session's final hours.
"I can't perceive that there will be any difficulty," said Sen. Steve Murphy, DFL-Red Wing, chairman of the Senate transportation committee. "We're not going to send any federal money back, period. We'll figure out a way to get it done even if the governor vetoes a funding package."
Gov. Tim Pawlenty's office also expressed optimism. "We're hopeful that we can come to a bipartisan agreement with the Legislature regarding transportation funding," spokesman Brian McClung said in an e-mail.
McClung said the governor will "strongly encourage" the Legislature to pass the funding match early in the session, either as a stand-alone bill or as part of a broader transportation package.
The state funds would be a combination of trunk highway bonds, general obligation bonds and cash, he said.
The federal and state money would be used for an extensive plan that focuses on the southern half of Interstate 35W. It includes creating high-occupancy toll lanes from south Minneapolis to Burnsville. It would also add a regular southbound lane to the Minnesota River crossing and a unique northbound shoulder lane in south Minneapolis that would be opened to paying and high-occupancy traffic only during congested periods.
The plan also includes rebuilding Marquette and 2nd Avenues through downtown Minneapolis to create two bus lanes on each. Most of the work needs to be completed by September 2009.
The administration has made it clear that the $55 million match for the federal grant won't be diverted from other transportation projects, said Bernie Arseneau, the Minnesota Department of Transportation engineer who is shepherding the grant.
No agreement, no money
If the Legislature and governor don't find and approve the match in time, the $133 million "would be essentially left on the table," Arseneau told officials from several south metro communities last week.
Rep. Shelley Madore, DFL-Apple Valley, told Arseneau that she has been asking in finance meetings about the matching money, "and everybody just kind of glosses over that because they feel like that's another hot topic -- 'Where are we going to come up with $55 million?'"When you have to dip into the general fund in order to match federal dollars, it's one more example of how the system is broken," said Rep. Frank Hornstein, DFL-Minneapolis, who sits on the House Transportation Committee, said last week. "I think this project is a case study of why we need a comprehensive transportation bill."
Will the Legislature produce a bill the governor will sign this time? "That's the big question," Hornstein said.
"We take the deadlines very seriously," said Brian Turmail, a spokesman for the federal Department of Transportation. If state leaders fail to give the green light in time, "then the funds would indeed be at risk." He said his agency would take into account the "unique challenges" caused by the bridge collapse.
Minneapolis has concerns
The city of Minneapolis is particularly concerned about the deadlines. Creating the double bus lanes downtown so that buses can pass each other will require the ripping up of 26 blocks, according to said Bill Fellows of the Public Works Department.
City Council Member Elizabeth Glidden said that if the plan isn't approved until May, the city could lose a construction season because of all the necessary design work and utility relocation.
Glidden and others see numerous risks for Minneapolis. If the city begins work before everything gets the official OK and then the grant is turned back, the city won't be reimbursed. But if it doesn't begin the work sooner, it will be hard to finish by the 2009 deadline.
MnDOT did get a deadline exemption for having the toll lanes up and running. The Crosstown Commons, through which I-35W passes, is undergoing a reconstruction that won't be complete until fall 2010, so the lanes don't need to be finished until that project ends.
MnDOT is getting ready to start work as soon as the governor and Legislature give the go-ahead, whether at the beginning of the session or the end.
"It's really in their court right now," Arseneau said.
Last week, members of the 35W Solutions Alliance, which includes Glidden, Madore and other representatives from communities along the corridor, tossed around ideas for attracting support for the funding, including lobbying at the Capitol and appealing to the public.
As a last resort, a few officials suggested walking through stopped traffic on Hwy. 77 with a bucket to collect cash.
Jim Foti 612-673-4491
Jim Foti jfoti@startribune.com
Governor: Tim Pawlenty
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