I wanted to find out why the Minnesota Legislature isn't hard at work on a big transportation funding bill this session, given the need that Minnesotans can see on nearly every road and bus they take. So I called the office in charge on that issue — the Minnesota Chamber of Commerce.
OK, that's not quite fair. The DFL-controlled Legislature and DFL Gov. Mark Dayton don't need business blessing to do their duty. They didn't appear to care what the chamber thought when they passed a $1 billion income tax increase last year or a minimum-wage increase this year.
But business unwillingness to join, let alone lead, a transportation funding parade is regularly cited by others in that line as a big reason their march stalled this year, after the state Senate passed a gas and metro sales tax increase last year. I asked the state chamber's Laura Bordelon what gives.
She cited three things. One: "There's money flowing." Unlike in 2008, the last time the chamber backed a tax increase for transportation, a combination of federal money, a county-option wheelage tax enacted last year and clever borrowing have Minnesota preparing for a hefty $1.1 billion construction season this summer.
But: After this season, federal money becomes uncertain. After 2017, according to prudent Minnesota Department of Transportation policy, highway bonding can't grow without more debt service to support it. Look ahead to 2030, and the experts forecast a $21.2 billion gap between transportation dollars expected and the cost of keeping the system performing as it does today. You want world-class? That'll cost $30 billion or so more. (By comparison, the 2008 transportation bill raised $6.6 billion.)
Back to Bordelon for Reason Two: "MnDOT and the Met Council should be stretching the funds they've got. There needs to be an effort toward greater efficiency. We're not seeing that." But: MnDOT Commissioner Charlie Zelle, former CEO of Jefferson Lines, has made efficiency a priority since he took that office 16 months ago. He established internal task forces to enhance financial, asset and project management, and has been meeting regularly with his old friends at the state chamber (he's a former board member) in an effort to win trust.
Yet his efficiency drive can only go so far, Zelle said. "Without additional funding, in five years we will be less efficient because of the deterioration of our assets. It's like allowing a roof to deteriorate on a house."
Reason Three — which may be the most telling of the batch — becomes evident when Bordelon talks about how business owners are "still stinging over the tax increases of last session. It's a much greater challenge [for them to support higher transportation taxes] this time, when they've just sustained that blow. That income tax increase is a hurdle."