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February
19, 2008 |
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Intergovernmental
Services Weekly Legislative Update Week
of Monday, February 18 Transportation Transportation
funding bill on House Floor on Thursday, February 21
The
transportation funding bill (H.F. 2800/S.F. 2521) was heard in the
Senate Transportation Finance Committee and the Senate Finance committee
and is on the way to the Senate Tax Committee. In the House, the
bill HF 2800 has moved quickly
through the committee process where it has been heard in the House
Transportation Finance Committee, the House Capitol Investment Committee,
the House Finance Committee and the House Tax committee. On Monday,
February 18, the House Tax Committee removed the indexing provision and
increased the 2.5 cent gas tax that would address the debt service and
increased it to a maximum of 3.5 cents. It also expanded the
metropolitan transportation area to not only include the seven metro
counties but will now include the counties of Chisago, Isanti, Sherburne,
Wright, McLeod, Sibley, LeSueur, Rice, Goodhue, Stearns and Benton.
The committee also reduced the trunk highway bonding provision by $400
million over the ten year period. On
Friday, February 15, the AMC Board of Directors voted to support the
revised legislation although many members expressed concerns that it does
not address all of counties identified needs. The
bill is scheduled for a floor vote on the House floor on February
21. The House is scheduled to go into session that day at 10:00
A.M. Please join us as we work to make sure this bill
passes. H.F.
2800 funding provisions include: ·
A
5-cent gas tax increase phased in over a few months--2 cents on the day of
enactment and 3 cents in September 15, 2008. ·
$1.8
billion in trunk highway bonding over 10 years, $417 million in year one
and $500 million in year two, $100 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 targeted to a trunk highway bridge
improvement program created in the legislation. ·
3.5-cent
gas tax increase for debt service for trunk highway bonding effective
August 1, 2008. ·
Increased
motor vehicle registration fees by removing the caps and changing the
depreciation schedule ·
½
percent increase in the state sales tax in an expanded metropolitan area
including the nine collar counties, Stearns and Benton authorized through
a joint powers agreement with no required referendum -50 percent to metro
transit, 25 percent to construction or reconstruction of trunk highways or
local roads of regional significance, and 25 percent to a flexible account
for transit, trunk highways and roads and pedestrian and bicycle
paths. ·
½
percent county option sales tax by referendum for Greater
Minnesota ·
The
AMC county state aid highway formula for new Highway Trust Fund revenue-
60 percent needs and 40 percent motor vehicle
registrations. ·
Leased
motor vehicle sales tax revenue- Part of the revenue would meet the
Governor’s request to provide an income tax offset for low income
citizens. The rest of the funding would be divided 50 percent for
Greater Minnesota Transit. 25 percent for Metro Transit, 25 percent for
county state aid and municipal state aid highways and
streets ·
$50
million for the Local Bridge Replacement program. ·
$10
million for the Local Road Improvement Program Other
identified appropriations and policy provisions Trunk
highways ·
In
2009 $40 million for construction of interchanges involving trunk
highways. ·
In
200 and 2010 $300 million each year for predesigned, design, preliminary
engineering, right-of-way acquisition, construction and reconstruction and
maintenance of bridges through the implementation of a new trunk highway
bridge improvement program. ·
$4.2
million for the Great River Road. ·
$24.7
million for the Urban Partnership Agreement. ·
$23.9
million for the Mankato District Headquarters. ·
$8.6
million for the Chaska Truck Station-Carver County
Partnership. ·
$2
million for the Rochester and maple Grove Truck Stations
Design. The
local road improvement program ·
The
language for the use of the proposed $10 million for the Local Road
Improvement Program will now be available 1/3 to the metropolitan area and
2/3 to Greater Minnesota for rural road safety capital improvement
projects on county state aid highways. Local
option taxes ·
Metropolitan
Area sales tax ü
The
Metropolitan Transportation Area would be defined as the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, Chisago,
Isanti, Sherburne, Wright, McLeod, Sibley, LeSueur, Rice, and Goodhue,
Stearns, and Benton. ü
Establishes
a minimum guarantee county defined as any metro county or eligible county
that is participating in the joint powers agreement whose proportion of
the annual sales tax revenue collected within the county is less than or
equal to three percent. ü
Authorizes
the boards of the counties participating under the joint powers agreement
by board resolution to impose a one-half percent sales tax and a $20.00
motor vehicle excise tax. ü
Allows
any other eligible county by board resolution to join the joint powers
board and impose the one-half percent sales tax. ü
Provides
a withdrawal provision for any participating county. ü
Gives
bonding authorization to the joint powers board or any county acting under
the joint powers agreement. ·
Greater
Minnesota sales tax ü
Authorizes
any county outside of the metropolitan transportation area or more than
one county acting under a joint powers agreement to impose a one-half
percent sales tax plus the $20.00 excise tax by
referendum. Toll
roads ·
Prohibits
a road authority from converting a public roadway to a toll road, but
grandfathers-in the existing HOV lanes. ·
Prohibits
a road authority from converting a public roadway to a BOT
facility. Flexible
highway account (Turnback Account) ·
Restricts
funding of the flexible turnback account to county and city turnbacks, to
safety improvements on county highways, city streets or township roads and
to routes of regional significance. Transit
funding ·
Prohibits
a county regional rail authority from contributing more than ten percent
of the capital costs of a transit project ·
Prohibits
a county regional rail authority from contributing any funds to pay for
the operating and maintenance costs of any transit project.
For
more information, contact:
Carol Lovro, AMC Policy Analyst
General
Government and Taxes Two
tax bills may move forward in 2008 On
Wednesday, February 19, the House Tax Committee will hear legislation to
bring Minnesota’s tax laws into conformity with existing federal tax law.
The bill, H.F.
3200,
is believed to be non-controversial and must be passed immediately to
allow Minnesotans to take advantage of the changes this tax filing season.
Included in the mix are additions for certain tuition expenses and
teachers’ expenses. The
second tax bill, which does not yet have a hearing scheduled, will be a
compilation of all non-controversial components of the 2007 tax
bill. House Tax Committee Chair Anne Lenczewski (DFL-Bloomington)
has indicated that she is working with the Governor’s office, the House
Speaker and Senate leadership to put together a package that can be moved
forward this session. Two significant issues for counties include
the ability to invest in trusts to fund outstanding OPEB (Other Post
Employment Benefit) liabilities and an increase in the local government
Capital Improvement Program bonding limits. At this time it is
unclear what other provisions of the 2007 tax bill may still be viable
this session, however, hearings on the bill are expected to begin in the
coming weeks. Legislature
racing against the clock The
legislature reconvened at noon on February 12 with just 45 legislative
days remaining in the 2007-2008 Session. The constitution requires
that the legislature only convene for 120 days each session, sessions are
two year events, and that neither body adjourn for more than three days
without a joint resolution. The net result is that at a minimum the
legislature must use two legislative days per week or at least 29 days in
order to comply with constitutional law up until the constitutional
adjournment date of May 19, there are 14 weeks from February 12
and May 19. This
leaves just 16 “extra” legislative days to move bills between committee
hear all floor debate and of course address the budget deficit following
the release of the February forecast. Further crunching of the
numbers shows that on average, the legislature can meet just three times
per week all session long. This week the legislature plans to meet
four times, a pace which must continue if bills are to continue moving
rapidly through the committee process. Although a short session
would be welcomed by many, legislators are in real danger of running out
of time even before the constitutional adjournment date of May 19.
At the current pace, the legislature would be out of days by the end of
April unless a joint House-Senate resolution was enacted to allow them to
adjourn each body for more than three days. For
more information contact:
Joe Mathews, AMC Policy
Analyst Environment
& Natural Resources The Senate Committee on
Energy, Utilities, Technology and Communications heard recommendations
from the Minnesota Climate Change Advisory Group (MCCAG). The top
recommendations that the MCCAG Technical Working Groups identified
involved the following setting priorities for changes in the areas of
forestry management, bio-fuels and waste management. AMC will
continue to monitor any legislative action on these issue areas. On
Wednesday this week, the House Energy Finance and Policy Division will
receive an update from the Department of Commerce and other state agencies
on 2007 energy and commerce related actions and
reports. On Monday February 18,
Ramsey County Commissioner Victoria Reinhardt testified before the House
Solid Waste Sub-Committee regarding various solid waste bills, some of
which had been introduced and another bill that has yet to be officially
introduced. She stressed that while counties are in support of
increased recycling and lowering dioxin emissions from burn barrels the
state must first address funding issues and service availability in rural
areas of the state. AMC staff will be in contact with the bill
author to discuss these issues as they make their way through various
committees. Tuesday of this week
Senator Steve Dille’s comprehensive planning bill (S.F. 1402) will be
heard in the Senate Ag Committee. While this bill has language that
indicates certain goals that counties should consider when doing their
comprehensive plans it is thought that this bill still takes away local
control and has the potential to leave local units of government
vulnerable to land use related law suits. In past years AMC has
opposed this bill and AMC will continue to oppose if it stays in its
current form. Another bill
of interest is H.F. 2536 that deals with watershed districts duties and
taxing authorities and will be heard on Tuesday. AMC has many
concerns with this bill as it has been introduced. AMC membership
and staff have been working with other interested groups to identify an
alternative to this bill that would not add another layer of government
but would rather work to help watershed districts function
better. For more
information contact: Annalee Garletz, AMC Policy
Analyst Health
and Human Services Health
and Human Services Committees' first week's focus is
bonding For
more information contact: Patricia Coldwell, AMC Policy
Analyst Public
Safety Public
Safety Committees' first week's focus is bonding In
the public safety arena, the focus thus far has been on local bonding
projects. The House and Senate public safety committees are busy
hearing the many bonding requests for county and regional training centers
for police and fire, as well as requests for county and regional forensics
labs (including one in Anoka County). It is expected that the
committees in both bodies will put forth their recommendations for which
projects should move forward later this week. Once
the committees have worked through their bonding proposals, they will
start to tackle other issues, including the offender re-entry bill
authored by Representative Paymar (HF 2996). This bill is
the culmination of a working group he chaired during the interim and is
likely the most significant policy initiative that the Public Safety
Committee will address this session. For
more information contact: Ryan Erdmann, AMC Policy
Analyst *ADMINISTRATORS
/AUDITORS: Please share a hard copy of all AMC UPDATE emails with
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Paul, MN 55103-2108 Phone:
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