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Committee Hearings Date: Friday, May 10, 2002
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About the Debate:
The conference committee heard a Senate transportation funding offer followed by House counter-offer. The Senate offer included:
5 cent gas tax increase, effective 06-01-02;

Up to $100 million per year in trunk highway bonds financed by gas tax increase;

No indexing of the gas tax;

8.25% of MVST dedicated to a multi-modal transportation fund (8.25% taken from the 32% currently deposited in the HUTDF);

Multimodal fund to be split 60% to the Metropolitan Council, 40% to MnDOT, of which 25% is for small cities and 20% for Greater Minnesota transit;

Senate CSAH formula - 10% equally, 10% lane-miles, 30% population, 50% needs;

No referendum for a half cent sales tax in the 11 county metropolitan area.

The House counter-offer included:
3 cent gas tax increase, effective 06/01/02;

No change in CSAH formula;

Up to $100 million per year over 10 years in trunk highway bonds, financed by the gas tax increase, split as follows:
47.5% greater MN interregional corridors
47.5% metro bottlenecks
5% advantages for transit

No $750 million in trunk highway bonding as proposed by House;

Do not convert $245 million in trunk highway funding cash to bonds;

No indexing of the gas tax;

No half cent sales tax for the 11-county metropolitan area;

Constitutional amendment dedicating current MVST appropriations,
32% HUTDF
20.5% Metro Transit property tax replacement
1.25% Greater MN Transit property tax replacement
2% Metro Area Transit appropriation account

House position on bonding for transit and transportation:
$54 million bonding authority for Metro Transit in the Public Finance bill;
$48 million local bridge replacement;
$10 million local road 10-ton upgrades;
$61 million local road improvement program;
$1 million town road sign replacement;
$2 million greater MN transit capital facilities;
$4 million Northwest metro busway;
$1 million Cedar Avenue transitway;
$500,000 park-in-rides;

No funding for MN/DOT buildings.