The 20-cents-per-gallon gas tax in Minnesota generated $656 million in 2006 — about one-third of all transportation revenue. The Legislature last raised the tax in 1988, and there's currently a bill advancing in the House to increase the tax by 10 cents by mid-2008.
An article in Willmar's West Central Tribune — one of the better outstate newspapers — notes that gas tax revenue has been leveling off, even though there is greater pressure on roads from increased miles.
Several years ago, for example, gas tax receipts grew by up to 3 percent a year, but officials forecast annual growth of only 1 or 2 percent in coming years.
Federal funds, which come in part from the federal gas tax kicked back to the state, make up a significant portion of our highway spending. But some of that money for roads and transit projects is dependent on matching state dollars, which have been in short supply under the Pawlenty approach of borrowing to pay for roads. Meanwhile, maintenance-related costs have continued to climb, resulting in deferred maintenance on existing roads. About 50 percent of the state's infrastructure maintenance has been unfunded since 1999.
Even with an estimated $1.7 billion pouring into state, county and local roads in 2006, there are more highway projects lined up than there is money. There is between $750 million and $1.2 billion in annual unmet state highway needs, MnDOT spokeswoman Lucy Kender said.
This slowing of revenue, reluctance to tax, inability to match federal funds in a timely fashion, combined with heavier road and escalating maintenance and repair costs, means Minnesota continues to lose ground against congestion. It's compounded by a general public failure to systematically connect the dots between development patterns, highway congestion and public transit.
What's happening in the under-funded transportation sector is emblematic of the trends in education, the environment and other areas of public investment as well.
