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Ahead of Budget Forecast, Rep. O'Neill Urges Support for GOP Transportation Plan

Monday, February 22, 2016

MAPLE LAKE, MN—Ahead of this Friday's February Budget Forecast, Representative Marion O'Neill (R-Maple Lake) is urging support for a long-term transportation plan that would invest $7 billion in state roads and bridges over the next 10 years without an increase in the gas tax. In total, the plan would repair or replace more than 15,500 lane miles of road and 330 bridges statewide. 

"People in Wright County have made it clear that one of their top priorities for the 2016 session is passing a comprehensive transportation plan that improves our roads and bridges without a harmful gas tax increase," said Rep. O'Neill. "Additionally, smart investments in transportation are critical to complete the I-94 expansion between St. Michael and Albertville, an important project for commuters and commerce in our part of the state."

Over the next ten years, the Republican proposal invests:
$4.03 billion for state roads
$1.44 billion for county roads
$583 million for municipal roads
$282 million for small cities under 5,000
$139 million for Greater Minnesota bus services
$60 million for township roads & bridges

The Republican proposal creates a special fund called the Transportation Stability Fund that collects existing proceeds from dedicated tax revenues and deposits them into accounts for each of their dedicated purpose. There are five accounts that would dedicate a combined $3.078 billion over ten years:

1. Road and Bridge Account – revenue from existing sales tax on auto parts
2. Metro Capital Improvements Account – revenue from existing sales tax on rental vehicles
3. Small Cities Account – revenue from existing rental vehicle tax
4. Greater Minnesota Bus Services Account – revenue from 50% of existing Motor Vehicle Lease sales tax
5. Suburban County Highway Account – revenue from 50% of existing Motor Vehicle Lease sales tax

In addition to the dedicated funds provided by the Transportation Stability Fund, the Republican proposal uses $1.3 billion in Trunk Highway bonds, $1.2 billion from realigning Minnesota Department of Transportation resources, $1.05 billion in General Obligation bonds, and $228 million in General Funds.

Legislators are also working to pass a tax bill this upcoming session and Rep. O'Neill will continue to advocate for significant tax relief in the event of a large budget surplus. 

The 2016 session is set to begin on March 08, 2016. 

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