Dayton makes two offers on transportation funding

  1. Listen Dayton makes two offers on transportation funding

    May 16, 2016

Updated at 1:20 p.m. with comments from Dayton and Daudt

Gov. Mark Dayton released two funding proposals Monday to try to break an impasse with House Republicans over a transportation bill.

With the 2016 session in its final week, Dayton asked state lawmakers to consider two alternatives for compromise. One proposal includes a 5 cent per gallon gas tax increase. The other does not.

Both plans would increase license tab fees and use existing general fund revenues.

Both plans would raise the sales tax in the metro area by half a cent to fund mass transit.

Both proposals would generate $600 million per year for roads and bridges.

Dayton said legislators need to accept things they don’t agree with in order to reach a compromise and pass a transportation bill this session.

“Inaction is really a failure on behalf of Minnesota, because it means if nothing is done conditions will continue to get worse,” Dayton said. “I don’t believe that’s something anybody can justify to the people of this state.”

House Republicans have said they won’t accept any plan that includes a gas tax increase.

House Speaker Kurt Daudt, R-Zimmerman, said he was pleased to see the governor use general fund money and leave out the gas tax in one proposal. But Daudt criticized Dayton’s proposed tab fee increase as a different kind of tax increase.

“I think we might be willing to discuss a small amount, but it’s tough to say you’re going to double the amount that people are paying for their license tabs and not feel like there’s going to be some pushback from the public,” Daudt said.

Still, Daudt said he thinks a deal can be reached this week.

Dayton presented the offer to GOP and DFL legislative leaders during a closed door meeting Monday morning.

Here’s a summary off the two offers released by the governor’s office.



Governor Dayton’s Compromise Proposal #1



Governor Dayton’s Compromise Proposal #2



General Fund Expenditures



$200 million per year



$200 million per year



5¢ Gas Tax Increase



$150 million per year



$0 per year; no gas tax increase


Increased Vehicle Tab Fees



$250 million per year



$400 million per year



0.5¢ Metro-Area Sales Tax for Transit



$280 million per year



$280 million per year




Roads & Bridges: $600 million


Transit: $280 million



Roads & Bridges: $600 million


Transit: $280 million






Roads & Bridges: $6 billion


Transit: $2.8 billion



Roads & Bridges: $6 billion


Transit: $2.8 billion






  • Dave

    does Kurt Doubt understand the difference between structural and one-time money? Intrepid reporters, please start by asking him this question. His answer will be instructive.

  • wjc

    Daudt doesn’t want a deal. He wants to run out the clock and blame the DFL to give him and his colleagues an issue to run on for November, since they see Trump hurting the down-ballot races.

    He might be doubling down on failure, however, if the voting public sees the GOP as the obstructionists they are, and they take a Trump hit too.

    I hope I’m wrong, but I don’t see a transportation bill (or a bonding bill?) getting done this session.