True North

Today DFL leaders introduced a new transportation bill calling for a whopping $8.5 billion tax increase over 10 years. At this morning's press conference, Senator Steve Murphy (DFL, Redwing), chairman of the Senate Transportation Committee, tried to position the bill as a "jobs program", claiming the additional spending would create 33,000 new jobs each year for the next 5 years. The specifics of the proposal include:

-- 25% increase in the state's gas tax, with annual automatic increases pegged to the CPI

-- 1/2 percent sales metro sales tax increase (with the possibility for similar increases outside the metro area)

-- increases in motor vehicle registration tax.

Senator Murphy claimed that the indexed gas tax increase would avoid the state legislature from having to revist the gas tax issue on a regular basis. But Wisconsin recently rescinded a similar automatic gas tax increase because it resulted in the state having one of the highest gas tax rates in the nation.

Bill sponsors included a $25 tax credit to offer an offset for low-income households. But the proposed tax increase amounts to over $4000 per household over 10 years, eclipsing any proposed offset. Gas prices are already at record levels and Minnesota is in an economic slowdown. The proposed tax increase would further put the brakes on Minnesota's economy and place a huge additional tax burden on those least able to afford it.

The bill includes funding for light rail, a proposal that many people believe has more to do with social engineering versus addressing existing public needs. David Strom of the Free Markets Institute comments on light rail proposals in his recent column entitled, "A Boondoggle at Any Price".

Bill opponents also claim that there's plenty of money available to fund required improvements to Minnesota's transportation infrastructure. The basic issue comes down to better allocating state and federal tax dollars towards the highest priority projects.

Senator Murphy suggested that DFL leaders were planning to "fast path" the bill through the legislature so that it would be on the governor's desk by the end of February. When questioned about trying to comprise with those who might oppose this legislation, Senator Murphy seemed to suggest that comprises would not be considered.

You might recall that Senator Murphy was the legislator who went on a tirade after the I-35W bridge collapse last August, implying the collapse was due to inadequate funding for maintenance. Murphy used the incident to call for a substantial increases in transportation funding and the resignation of Transportation Secretary Carol Molnau. Recent findings by the National Transportation Safety Board, however, indicate that the bridge collapse was likely due to a design flaw, not a lack of maintenance. A review of the facts suggests Minnesota may have an issue with how tax revenue is being allocated, not a lack of funding.

Send a message to your elected officials to tell them to SAY NO to this massive spending boondoggle.