Key Senate Panel Shuns Governor Walz's Transportation Plan

On a 10-5 vote, the Senate Transportation Committee failed to advance the governor's transportation funding package, which came before the committee Tuesday, April 2, as SF 2758.

Governor Walz's funding proposal calls for phase-in increase of the gas tax to 20 cents, which would raise about $6.5 billion dollars over 10 years. His plan also includes an increase in the registration tax to 1.5 percent, which would raise an additional $4 billion dollars. The measure would increase the motor vehicle sales tax to 6.875 percent to generate $300 million dollars for roads and bridges and another $205 million dollars for transit. Furthermore, the bill would also authorize $2 billion dollars in trunk highway bonds.

With the growth of sales in electric vehicles, Senator Jason Rarick, R-Pine City, and Senator David Senjem, R-Rochester, questioned the continued reliance on the gas tax to support road improvement projects. In response, Transportation Commissioner Margaret Anderson Kelliher said that of the 4.9 million vehicles in Minnesota, under 4,000 are electric--a small fraction of the vehicles being used, she emphasized.