February 11, 2008

Legislative Transportation Committee chairs review new funding bill with transportation advocates

At noon today, February 11^th, the Chairs and Vice Chairs of the Transportation Committees in the House and Senate met with local government representatives and the lobbyists of several transportation advocacy groups to review the major elements of a transportation funding bill that will be introduced on Tuesday when the Legislature reconvenes. The bill will be heard on Tuesday February 12 in the Senate and House transportation committees as follows:

Senate Transportation Policy and Finance Committee

12:30 P.M. Capitol Room 15

House Transportation Finance Committee

4:00 P.M. State Office Building Room 10

Major bill elements include:

· A 5-cent gas tax increase phased in over a few month; 2 cents immediately and 3 cents in September;

· $2.2 billion in trunk highway bonding over 10 years, $500 million in year one and $500 million in year two, $150 million in each of the following years. Of the $500 million in year one and year two, $300 million in each of these first two years will be for trunk highway bridges;

· 2.5 cent gas tax increase for debt service for trunk highway bonding;

· Indexing the gas tax starting in 2011;

· Increased motor vehicle registration fees by removing the caps and changing the depreciation schedule

· ½ percent increase in the state sales tax in the metropolitan area for 20 years, thereafter decreasing to ¼ percent to address transit operations (no referendum);

· ½ percent county option sales tax by referendum for Greater Minnesota;

· AMC county state aid highway formula for new Highway Trust Fund revenue;

· Leased motor vehicle sales tax revenue (part of the revenue would meet the governor’s request to provide an income tax offset for local income citizens). The remainder would be divided 50% for Greater Minnesota transit, 25% for Metro Transit, and 25% for county state aid and municipal state aid highways and streets;

· Funding for the urban partnership agreement; and

· Funding for the Local Bridge Replacement program (amount to be determined).

More details will follow when the bill is introduced and has been reviewed. What is known at this time is that the bill is on a fast track. It will be moved through the committee process in an expedited time frame and is expected to be heard on the House floor or about February 21. Committee chairs indicated their strategy that local bridge program funding will only be included in the transportation funding bill and not through the capitol investment bill as in past years. More details on this will be provided as information becomes known.

For additional information contact: Carol Lovro, AMC Policy Analyst

Financial Management of Health Care Programs evaluation released

The Office of the Legislative Auditor released the program evaluation, Financial Management of Health Care Programs, on Monday afternoon. The report contains findings on administrative expenditures of managed care organizations as well as analysis of county-based purchasing. The formal presentation was made to the House Health Care and Human Services Finance Division. A more thorough update will be provided in the coming days.

Click here for the full report

For more information contact: Patricia Coldwell, AMC Health and Human Services Policy Analyst

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Phone: 651.224.3344, Fax: 651.224.6540