GOP lawmakers tout $7B, 10-year road and bridge plan with no gas tax hike

Republican leaders of the Minnesota Legislature said Monday they have a plan to raise $7 billion over the next decade, without raising the gas tax, to pay for repairs to roads and bridges.

House Speaker Kurt Daudt and other GOP lawmakers unveiled their proposal at a State Capitol press conference. It's a counterpoint to earlier, 10-year transportation proposals from Gov. Mark Dayton and Senate Democrats, who both favor a larger, $11 billion roads-and-transit plan funded with a new wholesale gas tax to accompany the existing per-gallon tax, higher license tab fees and a Twin Cities sales tax increase for transit projects.

"We think this is what Minnesotans have been asking for," Daudt said. "They've been telling us they want an investment in our road and bridge infrastructure, and they don't want a gas tax increase."

The Republican proposal creates what its backers dubbed the "Transportation Stability Fund." It would re- direct to roads and bridge projects a series of existing vehicle-related sales taxes that currenty feed the state's general treasury. Those include a sales tax on auto parts, a sales tax on rental vehicles, and a sales tax on vehicle leasing.

"If you ask Minnesotans if the money they spend on cars should be used on roads and bridges, the answer would be yes," said Sen. John Pederson, R-St. Cloud, the lead Senate Republican on transportation.

Between them, those existing sources would raise $3 billion over a decade for immediate repairs to roads and bridges, and highway improvements in economically strategic areas. Other major sources of funding in the GOP proposal are $1.3 billion from highway bonds, $1 billion in general bonding, $1.2 billion from "realigning resources" at the Minnesota Department of Transportation and $228 million from the projected $1.9 billion state budget surplus.

By proposing to shift existing sales taxes from the general fund, and skimming a portion of the surplus for roads, Republicans set the terms of a coming clash with Dayton and Senate DFLers. Leading Democrats including the governor have said they oppose taking money out of the general fund for transportation, arguing it leaves less money for schools and other state priorities.

The GOP proposal also includes far less money for transit projects than what Dayton and many DFL lawmakers have sought. While the proposed metro sales tax hike in several DFL proposals would raise hundreds of millions in new, annual transit funds, the GOP plan directs a total of $64 million to transit statewide over the next two years. That would be split equally between transit in the metro area and outstate Minnesota, meaning just $16 million yearly for Twin Cities projects.

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