Transportation

Minnesota's Great Frustration

* The gas tax is a source of revenue that is losing ground as the mainstay of transportation funding. In fact,

local property taxes, not the state's gas tax, are now the largest source of transportation funding.

* Even though today there are more vehicles driving more miles, and Minnesotans are buying more gas, the

value of the 20-cent tax on a gallon of gas, established in 1988, is worth only 12 cents today. Local property

taxes have been used to fill the gap - and they are rising.

* Instead of maintaining the roads we have, the Pawlenty/Molnau Administration borrowed heavily to build more

new roads. Their blind allegiance to a no-new-taxes pledge has meant Minnesota does not have the revenue

needed to pay-as-we-go to get the job done.

* The Pawlenty/Molnau Administration bet on advanced funding (borrowing) from the federal government - and

lost. The state overestimated what the feds would dole out. Worse yet, the Pawlenty/Molnau Administration's

fiscal mismanagement has resulted in federal money being left on the table.

* The Pawlenty/Molnau Administration underestimated inflation in construction costs. Transportation is a mate-

rials and capital sensitive sector of the world's economy. With China and India consuming more and more

resources, Minnesota is experiencing annual transportation cost inflation of 15 percent. After borrowing nearly

$1 billion, MnDOT announced that the projects to be funded by that debt were $300 million over budget.

* Because of its fiscal problems, the state has demanded local governments shoulder a greater share of the

burden for regional road projects than ever before. Not surprisingly, this has forced local governments to impose

higher property taxes on their own residents or siphon money away from necessary maintenance of existing

roads - or both.

* The Pawlenty/Molnau Administration gambled again when they pressured the construction industry to bankroll

the Crosstown/35W project. They lost again when contractors refused to bid on the job.

* MnDOT had a cash balance of $155 million when the Pawlenty/Molnau Administration took office. The

Pawlenty/Molnau Administration ran that fund down to a $60 million deficit, reversing a tradition of having money

on hand when contracts are signed.

* Compared to places like Denver, Phoenix, and Dallas, the Twin Cities region's multi-modal transportation

system is falling behind.

* Ways of getting around besides cars - buses, LRT, rail - have no reliable source of funding.

* The Legislature's habit of considering transportation funding decisions in a piecemeal fashion contributes to

Minnesota's lack of an integrated transportation system.

Transportation

Minnesota's Great Frustration

Congestion

* There is no easy cure for congestion (metro populations are growing), but it can be better managed

with a strategic transportation plan and the financing to go with it.

* Minnesotans' frustration is growing. The reasons are clear:

More people driving and people driving more

Poor and ineffective road management (e.g. signal timing)

Crashes caused by poor and/or distracted drivers

Distracted Drivers

* To nobody's surprise, U of M researchers have

found that drivers talking on the cell phone are more

dangerous than drivers not doing anything else

while driving.

* However, contrary to conventional wisdom,

researchers found sober drivers doing something

else (e.g., talking on the phone, eating food, fiddling

with the radio or CD player, etc.) while driving are

actually more impaired than drunk drivers not doing

anything else while driving.

* The Minnesota Department of Public Safety

reported that in 2005 crashes, many of which are

the result of distracted driving, resulted in more than

550 deaths and cost Minnesota $1.7 billion.

Opposing Views

* Some believe that progress can only be made by increasing the gas tax. Others oppose any tax

increase.

* Some will get on board only if transit is part of the package. Others adamantly oppose any

expansion of transit.

* Greater Minnesota is often suspicious of the metro area. Metro representatives claim they need a

bigger share of the funds.

* Contending views of this sort have produced one of the longest stalemates in state history. It has

been 18 years since the last substantial change in transportation policy or funding.

* The price of inaction has been huge. Congestion, delay, wasted gas, potholes and increased

vehicle repairs are all part of the true cost of getting nothing done. Minnesotans have waited long

enough.

Adapted from the Federal Highway Administration

Causes of Congestion

Transportation

Minnesota's Great Frustration

What Minnesota Wants

* Minnesotans repeatedly

call transportation a major frustration

and cite it as one of

the key issues government should address.

* Minnesotans are a demanding bunch; they are not willing to simply pay more. They

will

only pay more to get more results.

* Minnesotans

expect a transportation system that is balanced

so that no

part (roads vs. transit, metro vs. greater Minnesota) is favored at the expense of another.

They expect a system that demands better results from government and more personal

responsibility from users. Such a system must deliver greater reliability and safety (and,

ultimately, less frustration).

* Minnesotans

expect a solution

to their transportation headaches that:

* Eliminates bottlenecks

* Makes sound investment, maintenance and management decisions to improve the

use of roads as corridors for either shipping goods, commuting, recreation/ tourism or

local access

* Creates a system with viable transit alternatives

* Reduces the number of crashes by poor and distracted drivers

[what needs to be done]

1

Put a qualified leader - not a politician -

in charge of MnDOT.

Governor Pawlenty's experiment of appointing the

Lt. Governor to lead a state department has failed. People across Minnesota now have road and transit

conditions that are the worst they've experienced in decades. Minnesota needs a new Commissioner of

Transportation. When elected, Governor Hutchinson will appoint a new Commissioner, one he is

willing to hold accountable for results.

Transportation

Minnesota's Great Frustration

[The MVST Constitutional

Amendment: Why We Think It Is

Unnecessary]

Minnesotans are being asked to vote

this November on a

constitutional amendment

dedicating all the motor vehicle sales

tax (MVST) revenues to

transportation - to be split between

roads and transit. While we support

the intent, we believe this proposed

constitutional amendment is

unnecessary. Minnesotans are

willing to pay the price for better

roads and a better transportation

system. The Governor and the

Legislature should do the jobs they

were elected to do - dedicate the

money from MVST by law and make

it stick. It is cowardly for our elected

leaders to push the job off on voters

and say, "You do this." It's never

good policy to cram these

financial decisions into the state

Constitution, sealing up flexibility for

all time.

The Hutchinson Administration

will make the dedication of all

motor vehicle sales tax revenue to

transportation a fundamental part

of its transportation budget, and

will ask that the bill be among the

first on the Governor's desk when

the 2007 Legislature gets to work.

Governor Hutchinson will

sign a comprehensive

transportation bill, not veto it.

Pass (again!) the 2005

bi-partisan transportation bill

that the Governor vetoed.

2

When enacted, this legislation will:

* Raise the gas tax, in two steps, by a total of 10 cents per

gallon

* Allocate one-fourth of 1 percent of the 6.5 percent sales tax

to metro and Greater Minnesota transit

* Dedicate all motor vehicle sales tax revenue for

transportation

* Improve rural roads for safety and weight strength (more

10-ton roads)

* Accelerate fixing suburban bottlenecks

The legislation will commit an additional $7 billion over 10

years to begin fixing Minnesota's transportation mess.

Today, state and local government in Minnesota raise a total

of $16.20 for every $100 of personal income generated in

the state. That's the "price of government" and it is slightly

below the historical, 30-year average of $16.50. Fully

enacting this legislation will raise the price of government by

14 cents to $16.34.

Transportation

Minnesota's Great Frustration

3

Make transportation investment decisions based on

their expected contribution to improving key

elements of the system, not on politics.

We will follow these steps:

* Create reliability, safety and performance specifications for each type of transportation

corridor -- goods shipment, commuter, recreation/ tourism, local access

* Assess current performance against those specifications and identify key gaps in performance

* Prioritize and pay for investments in new infrastructure as well as maintenance and

management of existing infrastructure based on their enhancement of reliability and safety

4

Get serious about building a system of

transit in the metro area.

* Finish both the NorthStar and Central corridors

* Expand and integrate local and express buses with rail service

* Set a clear timetable for implementing the remaining pieces of

the system

Hold users responsible for their impact on the

reliability and safety of roads we share.

* Expand the use of tolls and carpool/ transit incentives to manage traffic on congested freeways

* Enact crash penalties and other incentives to reduce distracted driving

* Evaluate new technologies that facilitate charging motorists by how much they drive rather than

only by how much gas they consume. This would be a major transformation of how

transportation is funded and will require thoughtful research and citizen engagement.

5

Transportation

Minnesota's Great Frustration

How We'll Work Together

[Minnesotans pay almost $1 million every year for our statewide elected officers.

Citizens expect all five of these office holders to work together to produce results like

better transportation. Here's how each member of Team Minnesota will contribute

to making transportation reform happen.]

The Governor (Peter Hutchinson)

& Lt. Governor (Dr. Maureen Reed) will:

* Appoint a professional, experienced, and effective leader as Commissioner of

Transportation and hold that individual accountable for delivering these results

* Propose a budget that lays out the investments that need to be made in our

transportation system and how to pay for them without massive borrowing or

accounting gimmicks

The Attorney General (John James) will:

* Review proposed legislation to ensure that it does not violate the state

Constitution- before the bill is signed

* Ensure that the state Constitution is protected from being used as a substitute for the

Governor and Legislature doing the work they are elected to do

* Review state transportation contracting and administrative rulemaking procedures and

practices to ensure they will reduce bureaucratic frustration while complying with

state law

The State Auditor (Lucy Gerold) will:

* Engage with local governments (townships, cities, counties and regional transportation

agencies) and their elected officials to make them an active partner in the design and

implementation of these reforms

* Facilitate the sharing of "best practices" among local governments around

transportation - related issues and programs

* Ensure that local governments are effectively using state funds to achieve these

transportation results

The Secretary of State (Joel Spoonheim) will:

* Engage non-government organizations and groups - such as local

chambers of commerce, transportation advocacy groups, industry-specific

associations, etc. - to bring their voices, insights, and creativity into the debate

* Create opportunities for all citizens and offer their reactions and ideas

* Work with the Legislature to move this budget and other key pieces of legislation forward

* Travel around the state talking to Minnesotans about the merits of this plan and how they can support it

Prepared and paid for by the Independence Party - Team Minnesota PO Box 40459 St. Paul MN 55104 * www.TeamMN.com