Comprehensive proposal would fund roads, bridges and transit across Minnesota, and create 119,000 new jobs
Governor Dayton announces his proposal for a straightforward, honest solution to fix Minnesota’s aging transportation systems.
For years, state leaders have failed to adequately fund Minnesota’s highways, roads, bridges, and public transit systems. Insufficient funding has left them inadequate, congested, and needing repairs.
Today, Governor Mark Dayton proposed a straightforward, honest solution to fix Minnesota’s aging transportation systems. Governor Dayton’s plan would invest $6 billion over the next ten years to address the state’s highway funding deficit, invest $2.356 billion in local government transportation projects, and provide $2.92 billion for Metro and Greater Minnesota transit systems. The Governor’s proposal would create an estimated 119,000 new jobs,* and build the infrastructure necessary to meet the demands of a growing population and an expanding state economy.
“Inadequate transportation clogs our lives with worse traffic congestion, longer commutes, more dangerous travel conditions. Those deficiencies restrict our future economic growth and detract from our quality of life,” said Governor Dayton. “If we continue to avoid these problems, they will only get worse. It’s time to begin to solve them. I urge the Legislature to work with me this session to begin to repair and improve Minnesota’s transportation systems.”
“Minnesota’s roads, bridges, and transit networks form the backbone of our economy. After decades of decline, we must invest in these systems to protect Minnesota's long-term economic vitality,” said Lt. Governor Tina Smith. “The plan that Governor Dayton and I are proposing would provide the resources we need to build a modern transportation system – driving continued business and job growth, and protecting the quality of life enjoyed by all Minnesotans.”
The problem is real. In 2012, Governor Dayton convened a bipartisan panel of experts – including policymakers, business and labor leaders, Cabinet officials, and city and county officials from across the state – to study the funding needs of Minnesota’s highways, roads, bridges, and public transit systems. The Transportation Finance Advisory Committee’s (TFAC) analysis concluded that Minnesota faces a $6 billion state highway transportation funding deficit over the next ten years to preserve our existing system, and make the improvements needed for our long-term prosperity. Facing a large and growing list of transportation needs, declining revenues, and an expected one million new residents over the next 25 years, the need for a major new investment in transportation is clear.
“The state’s foremost experts agree on two things: this problem is real, and it cannot be resolved without a major investment,” said MnDOT Commissioner Charlie Zelle. “But Minnesotans didn’t need a bipartisan panel of experts to tell them what they already know – that our transportation system is in serious disrepair, and getting worse. This problem presents us with two simple and starkly different options: invest for the future, or do nothing and let the problem get much worse. We choose to invest.”
Governor Dayton’s Plan: What It Buys
Governor Dayton’s transportation plan would allow for significant improvements to roads, bridges, and transit systems statewide. Right now, more than half of Minnesota’s roads are more than 50 years old, and 40 percent of the state’s bridges are more than 40 years old. In just the next three years alone, one in five Minnesota roads will pass their useful life. And in the next ten years, nearly 40 percent of our roads will be past their useful life.
With new funding proposed by Governor Dayton, the state can make needed repairs and new investments in our transportation and transit systems – ensuring that Minnesotans are driving on safe, reliable roads and bridges, and have better access to a variety of low-cost transit options. Those improvements would include:
Better Roads and Bridges. The Governor’s plan would repair or replace 2,200 miles of state roads. It would repair or replace 330 bridges statewide. Forty percent of the new revenues raised in the Governor’s proposal would be directed to cities, counties, and townships; giving local leaders the resources and flexibility to repair and replace local roads and bridges statewide.
Better Transit Across Minnesota. The Governor’s plan would fund 20 new transitways, increase metro area bus service by 27 percent, increase Metro Area transit ridership by an estimated 80 percent, meet 90 percent of all transit needs in Greater Minnesota, and increase transit service in Greater Minnesota by nearly 500,000 hours of service each year.
More Corridors of Commerce. The Governor’s plan would provide an additional $1.6 billion for the Corridors of Commerce initiative, making targeted investments in key freight routes that are important for businesses’ expansions and economic development.
“By 2040, Minnesota’s population is expected to grow by over 1 million people; 800,000 of them will live in the Twin Cities Metro Area,” said Metropolitan Council Chair Adam Duininck. “For the future livability of our region, and for the competitive benefit of our entire state’s economy, we need to invest today in expanding and improving our transit systems. The future of our state, and our ability to leverage the federal funding needed to build a modern transit system, depends on the wise and necessary investments we make today.”
Governor Dayton’s Plan: How it Works
The Governor’s transportation plan would bridge the $6 billion state highway transportation funding gap over the next ten years by raising new dedicated revenues for roads and bridges. It would also increase revenues for transit.
New funding for road and bridge construction would be provided by a 6.5 percent gross receipts tax on gasoline, raising the current 1.25 percent base tax on vehicle registration fees to 1.5 percent, and raising car registration fees by $10. The Governor’s plan would also require MnDOT to generate efficiencies of 15 percent from all new revenues, allowing the Department to do $6 billion of work for $5.38 billion in new funding.
The chart below describes how new revenues would be used to address Minnesota’s transportation needs.
Road and Bridge Funding Over 10 years
State Funding (Trunk Highway) – $5.38 billion
Source : Gross Receipts Tax and Registration Fee
County, City, & Township Funding – $2.356 billion
Source : Gross Receipts Tax and Registration Fees
Transit Funding Over 10 years
Twin Cities Metro Area – $ 2.8 billion
Greater Minnesota Transit – $120 million
Bike and Pedestrian Funding Over 10 years
Bike and Pedestrian Infrastructure/Safe Routes to Schools - $ 75 million
*Job creation estimates for road and bridge improvements are calculated using a Federal Highway Administration fomula of 9,500 construction jobs and 4,300 construction support jobs created by each $1 billion in transportation investments. Job creation estimates for transit improvements are calculated based on the Metropolitan Council’s experience in building the Green Line (Central Corridor) LRT project.
On Friday, Governor Dayton visited the Mall of America in Bloomington to celebrate the completion of the Lindau Lane road improvement project. Thanks to $15.4 million in funding from the Governor and the Minnesota Legislature, the Mall of America’s more than 40 million visitors will notice some improvements starting this fall.
Governor Dayton joined local leaders as the new Lindau Lane Corridor opened to traffic, reducing congestion for those heading to the Mall of America. The new corridor project also is expected to foster economic development in Bloomington and provide safer access to parking for the largest shopping mall in the United States.
“This project will greatly improve the flow of traffic for cars and pedestrians entering the Mall,” said Governor Dayton. “It will improve safety, support commerce, and help eliminate the backlog of traffic that we have seen pile up for years at this intersection.”
Governor Dayton announces Corridors of Commerce transportation projects
Today, Governor Mark Dayton announced the acceleration of 13 more transportation projects in addition to the 14 prior to date. In 2014, Governor Dayton and the Legislature invested in the Corridors of Commerce initiative, which will be funding twelve of these plans. The final project – the expansion of Highway 371 to four lanes from Nisswa to Jenkins – was funded in part by $45 million in cost savings at the Minnesota Department of Transportation (MnDOT).
“These projects will reduce travel times, improve safety for Minnesota citizens, and help our businesses transport their products more efficiently,” said Governor Dayton, who working with the Legislature in 2013 and 2014 invested over $331 million in the new Corridors of Commerce initiative. “The number of projects from all over our state, which sought financing from this program, underscores the acute need for more transportation funding.”
State savings through efficiencies will accelerate the Highway 371 expansion project by two years, which means that MnDOT will begin construction in 2016, two years earlier than planned. This was made possible with funding from new investments in the Corridors of Commerce initiative, as well as the cost savings. Altogether, 27 transportation projects have received Corridors of Commerce funding since November 2013.
ST. PAUL, MN — More than 40 schools statewide are participating in International Walk to School Day Wednesday, Oct. 8, to encourage students, parents, teachers, community members and organizations to get out on sidewalks and trails. The event is anticipated to draw participation from more than 4,000 schools from all 50 states, plus Washington, D.C., and Puerto Rico, as well as 40 countries around the world.
This event is an opportunity for families with children who typically ride a school bus, and who live in areas with bike friendly paths to school, to walk and bike to school. Many schools participate by arranging for school buses to drop off students at a nearby park or other safe locations to finish the trip on foot. The drop-off option also can be used for students who are usually driven to school in private vehicles.
“Participating with school children emphasizes the importance of increasing physical activity, teaching pedestrian safety, reducing traffic congestion and building connections between families, schools and communities,” -Nicole Campbell, Minnesota Department of Transportation’s Safe Routes to School coordinator.
Last year's International Walk to School Day at Lyndale Community School in Minneapolis
Governor Dayton addresses a joint convention of the Minnesota legislature at his 2014 State of the State Address
Remarks of Governor Mark Dayton – As prepared for delivery
State of the State Address
Wednesday, April 30, 2014
When I ran for Governor four years ago, I promised “A Better Minnesota.” Tonight, I can report that the state of our State is better – much better -- than before. It’s better for us, and it’s better for those who will inherit it from us. But the economic growth and social progress we have achieved, also reminds us of the work we still have left to do.
Becoming a parent introduces a longer-term perspective. We begin to consider the effects of our actions not only on our own lives, but also on lives that will extend beyond ours.
Becoming a grandparent, as I did a year-ago, thanks to my terrific son and wonderful daughter-in-law, Eric and Cory Dayton, who are in the gallery tonight, adds another generation to that timeline. It also raises the stakes.
Somewhere down the road, my grandson and his generation will assess the state of the state we have left to them. They will decide whether we, through our actions or inactions, made their lives better. Let’s keep them in mind, as we choose our state’s path.
In my first State of the State, three years ago, I said, “I know what we must do to create that better future for all of us. To progress, we have to invest.
“We have to invest in more jobs. Invest in better education. In improved transportation. In the health of our citizens, our communities, and our environment. In the transformation of government services.”
In other words, we have to invest in growth, quality, and effectiveness.
JOBS & ECONOMIC DEVELOPMENT
Well, we invested in jobs. Minnesota’s private sector and public sector both invested in jobs. We are blessed with so many outstanding businesses, located everywhere in our state, operating everywhere in the world – and who, during the past three years, rediscovered that they can be successful and profitable here in Minnesota. As a result, we have the 5th fastest growing economy in the country.
There are more than 2.8 million jobs in Minnesota today. More jobs than ever before in our state’s history. 150,000 more jobs than when I became Governor three years ago.
This economic growth is happening all over our state. A recent newspaper story was entitled, “Lots of jobs find a home on the prairie in southwestern Minnesota.” It said that, for example, Jackson County reported a 5 percent increase in jobs during 2013. The City of Jackson’s economic development coordinator is quoted saying that, “Everybody who is able to work, and willing, is probably employed.”
Jackson’s largest employer, AGCO, has doubled its workforce to more than 1,300. Nearby, HitchDoc, which manufactures automotive and farm equipment for 300 customers, has grown from a dozen employees to 140. “And I’m looking for another 30,” said the company’s owner, Brad Mohns. “I’m turning down work, because I can’t find enough employees.”
Some people believe there is no role for government in private sector expansion and job creation. To see that they’re mistaken, just look around Minnesota.
There would not be a new stadium under construction in Minneapolis without the financial support of the City and the State of Minnesota. 7500 construction workers will have jobs building that stadium over the next couple years. Over one-third of them will be people of color.
Located right next to the stadium will be a $400 million private sector development, the largest in a generation. It will provide office space for 5000 Wells Fargo employees, residential apartments, stores and shops, a hotel, and a new, two-block public park. Its construction will employ another 1000 Minnesotans. And that is just the beginning of the area’s revitalization.
International Walk to School Day at Lyndale Community School in Minneapolis
The Minnesota Department of Transportation has announced the recipients of $4.8 million in federal grants for Safe Routes to School. The grants will support Safe Routes to School at 138 schools in 50 communities.
“These projects will help communities increase opportunities for children to walk and bike to school,” said MnDOT Commissioner Charlie Zelle. “More students walking and biking means less traffic on the road and in front of schools, improving safety and promoting healthier kids.”
Schools received grants in two categories:
MnDOT announced the available grants in December 2013. It received 85 applications and funded 60 applications. The total amount requested was $11.3 million.
All Safe Routes to School grants in this solicitation are federal funds. The infrastructure grant includes a 20 percent local match. Each infrastructure grant includes a resolution of support from the local governing body to ensure community support. No local match is required for planning assistance grants.
Since 2005, MnDOT awarded nearly $15.5 million in federal funds to communities to support Safe Routes to School. The majority of funding—$13.1 million—was awarded for infrastructure projects. The remainder was allocated for non-infrastructure items and activities.
This solicitation used the remaining federal Safe Routes to School funds. Federal funding for the program is now available through the new Transportation Alternatives Program. Safe Routes to School projects occur in all 50 states.
The list of grant recipients is below. More information is available at www.mndot.gov/saferoutes.
Minnesota Gov. Mark Dayton, Iowa Gov. Terry Branstad
We are governors from neighboring states and different political parties. We don't agree on everything, but we stand united in our belief that our nation needs a robust Renewable Fuel Standard (RFS) and together in our opposition to the Environmental Protection Agency's proposal to weaken the RFS.
Since Congress enacted the RFS in 2005 by huge bipartisan margins, it has provided the secure policy foundation that rural America needs to continue investments in renewable fuels. Those investments yield excellent returns. They diversify our nation's energy portfolio, clean the air, grow opportunities for businesses, create good paying jobs in rural America, add value to farm products, and give consumers lower-cost choices at the pump.
Big Oil dislikes renewable fuels, and has used its clout in Washington D.C. and at state capitals to thwart their progress. When Minnesota became the first state to require all gasoline sold to contain at least 10 percent ethanol (E10), Big Oil predicted fearsome disasters. They warned that ethanol would clog cars' carburetors and explode their engines, disrupt supply lines causing gasoline shortages, and increase the price at the pump for consumers. None of that happened.
The petroleum industry also claimed that the RFS causes higher fuel prices. In fact, the opposite has proven true. On February 4, 2014, regular gasoline in Cresco, Iowa, a town about 15 minutes from the Iowa-Minnesota border, was selling for $3.44 per gallon. E10 was selling at $3.13 per gallon. E85 fuel, which is 85 percent ethanol, was selling for $2.60 per gallon at the same station - 84 cents per gallon cheaper than regular gasoline.
A recent study at Iowa State University found that, "Feasible increases in the ethanol mandate in 2014 will cause a small decline in the price of E10. Our results should reassure those in Congress and the Administration who are worried that following the RFS commitment to expanding the use of renewable fuels will result in sharply higher fuel prices for consumers."
The Environmental Protection Agency previously estimated that by 2022, renewable fuels would replace 13.6 billion gallons of gasoline and diesel consumption and save motorists nearly $12 billion each year. The EPA also predicted that this displacement of gasoline and diesel would reduce annual greenhouse gas emissions by 138 million metric tons, equivalent to removing 27 million vehicles from our nation's highways. Ethanol can increase competition and save consumers money, provide real choice at the pump, and drive innovations and efficiencies that are good for the economy.
$986 Million Bonding Bill Invests in Needed Infrastructure Improvements across Minnesota
ST. PAUL, MN – Governor Mark Dayton today introduced a bonding proposal that would invest $986 million in infrastructure projects statewide, creating more than 27,000 Minnesota jobs1. This new jobs bill would help addresses many of the state’s critical infrastructure needs, while strengthening Minnesota’s economy and getting people back to work.
“My proposals will put thousands of Minnesotans to work throughout our state,” said Governor Dayton. “This bill gives priority to projects that are ready to go. Many of them have been delayed for years and are crucial to revitalizing downtown business centers, modernizing MnSCU and U of M buildings and classrooms, and improving parks, roads, and local infrastructure.”
Regional Civic Centers and Downtown Improvements
The Governor’s bonding proposal invests over $104 million in downtown areas and regional centers statewide – projects that will create jobs, attract additional private investment, and support economic development in communities across Minnesota. Some of those downtown investments include:
Photo content: Flickr User Doug Kerr; US Highway 10 – Minnesota
Minnesotans depend on their roads, bridges, and highways every day. Minnesota businesses also require access to good roads as they move goods and services to market. Recently, Governor Dayton and the Minnesota Department of Transportation announced that ten highway construction projects will receive funding through the state’s new $300 million Corridors of Commerce program. These new projects will reduce travel times and improve safety for Minnesota citizens and help businesses transport their products more efficiently.