Transportation

On Monday, Governor Dayton presented his 2015 Transportation proposal. His proposal would bridge the $6 billion State highway transportation funding gap over the next 10 years by raising new dedicated revenues for roads and bridges.

The new funding for roads and bridges would be generated from a 6.5% gross receipts tax on gasoline (the wholesale gas tax would be reset once a year based on the wholesale price of gas), raising the current 1.25% base tax on vehicle registration fees to 1.5%, and raising car registration fees by $10.

Additionally, the proposal:

• Requires MNDOT to generate efficiencies of 15 percent from all new revenues, allowing MNDOT to do $6 billion of work for $5.38 billion in new funding.
• Funds roads, bridges and transit across MN and creates 119,000 new jobs.
• $6 billion over the next two years to State’s highway funding deficit.
• $2.356 billion in local government transportation projects.
• $2.92 billion for transit systems.

House Transportation Committee Chair Rep. Tim Kelly, R-Red Wing, said the Legislature needs more time to figure out exactly how much money the State really needs for its roads, bridges and transit.

Budget

On Tuesday, Gov. Mark Dayton rolled out his proposed $42 billion two year budget. It would seek to invest the State’s $1 billion surplus in initiatives to improve education and child health. Dayton’s budget includes $17 million for K-12 education with $373 million in new money, and an additional $93 million for higher education. It also includes an expansion of a child care tax credit that will cost the State $100 million. Another $44 million will go to child protection and mental health services. His proposal also includes $109 million to provide 31,000 four-year-olds with preschool.

Dayton’s budget also includes more than $70 million for new bonding to make railroads safer and annual railroad assessments to make rail crossings safer. He proposed changing how the State taxes railroads and assessing a new fee dedicated to safety improvements. The Governor’s budget proposal would make a $30 million investment in broadband infrastructure development and would invest in a continuum of care solution that promotes mental health and early intervention. Additionally, he allocates another $11.6 million to the Department of Human Services to help DHS cover its share of MNsure’s expenses. Most of the money would pay for MNsure IT fixes.

Absent from Dayton’s budget is new funding for nursing homes, because the industry got a funding increase during the last legislative session. Nursing homes are looking for what amounts to $200 million more in this session The Long-Term Care Imperative (nursing home coalition) said they will continue to push the issue. Their proposal has the backing of some key House Republicans.

House Speaker Kurt Daudt, R- Crown, said he hasn’t picked a date to release the Republican budget, but hinted that it would follow the next budget forecast released at the end of February.