Despite Minnesota having $12.5 billion in one time money and a structural general fund surplus of $6 billion, there is no surplus in transportation funding. This report details decades of declining revenue from dedicated funding sources of transportation infrastructure, describes how that has left our infrastructure in a state of disrepair, and makes the case for a diversified and sustainable transportation funding package.
Declining revenue:
- Minnesota is facing a $30 billion funding shortfall over the next 20 years just to maintain our current system of state and county highways, city streets, town roads, bridges and transit.
- Nearly all funding for Minnesota’s state and county highways and bridges is received from constitutionally dedicated revenue sources, all of which are raising less revenue than forecast.
- The gas tax and debt surcharge hasn’t been increased since the aftermath of the I-35W bridge collapse, and it hasn’t kept pace with inflation.
Increasing needs:
- Minnesota has thousands of miles of roads in poor condition, more than 600 structurally deficient bridges, and transit systems across the state in dire fiscal condition.
- The American Society of Civil Engineers (ASCE) 2022 Infrastructure Report Card graded our roads a ‘D+’, bridges a ‘C’ and transit a ‘C-‘.
- There are 874 bridges in poor condition, 1,400 bridges with reduced or substandard load capacity and over 600 structurally deficient bridges.
- According to MnDOT’s 2022 Local Bridge Replacement Program Report, we need to be replacing 320 bridges per year and funding only allows the replacement of 100-200 bridges per year.
- The Metropolitan Council is facing a nearly $300 million fiscal cliff and rural transit agencies face a $167 million funding gap between projected revenues and projected needs.
A diversified and sustainable transportation funding system:
- We propose new dedicated revenue streams to clear Minnesota’s backlog of transportation projects and keep up with future demands.
- A 75 cent fee on retail delivery orders is a new and innovative way to diversify transportation revenue to make up for the increased wear and tear from delivery vehicles.
- By kicking the can down the road, policy makers have left our infrastructure in a dire state. Now is the time for policy makers to do the responsible thing and pay for our infrastructure needs through user fees like the delivery fee.
