County Transportation System
Governor’s Transportation Advisory
Committee
September 14, 2012
Abbey Bryduck, AMC Policy Analyst
Minnesota Roadways Comparison of System Miles and Traffic Volume-2006
System
Miles
Percent
VMT
US Interstates, & Us and MN
Trunk Highways
11,870
8.8%
59.2%
County State Aid Highways
30,514
22.6%
22.8%
County Roads
14,483
10.8%
1.9%
Municipal State Aid Roads –
Large Cities
3,069
2.3%
7.8%
City Streets – Large and Small
Cities
16,036
11.9%
6.3%
Townships
56,257
41.5%
2.0%
Other
2,917
2.1%
<.01%
Total
135,416
100%
100%
Total Local Share
120,629 miles
89.1%
40.7% VMT
Total County Share
45,000 miles
33.5%
24.7% VMT
Source:
Mn/DOT Traffic
Data and Analysis
County System:
• County State Aid System (CSAH)
– 30,600 miles of roadway - 67% of total
county mileage
• County Roads
– 14,500 miles of roadway, 33% of mileage
County State Aid System (CSAH)
Main Revenue Sources
• License Tab Fees
• Vehicles Sales Tax (MVST)
• Gas Tax
CSAH
Distribution
of Funds
• Distribution
of Funds
Apportionment Formula– “old money”
• 10% equal to all counties
• 10% proportional based on vehicle
registration
• 30% based on county lane miles
• 50% county construction needs
CSAH Distribution of Funds
Excess Formula– “new” money from
2008 bill
• 40% vehicle registrations
• 60% needs
County Roads
Revenue Source
• Property Taxes
• Assessments
Historical Context
• Local roads and bridges were initially funded with property
taxes and assessments, which were perceived as inequitable.
• Local Road Systems formed in 1956 with a constitutional
amendment, establishing the
62% (Trunk Highway)
29% (CSAH)
9% (Municipal)
distribution of highway user revenue.
• This would begin the gradual transition to taxes levied against
ownership and use of motor vehicles instead of property taxes.
System Stresses
• Traffic Growth
• Greater level of heavy commercial
traffic
• Heavier trucks
Key Challenges to the County System
• Inflation of costs of materials
• Increased maintenance and needs
due to aging infrastructure
• Aging population presenting
additional safety and mobility
concerns
Annual
Annual
CSAH
CSAH
Unmet
Unmet
Construction
Construction
Needs
Needs
Source: Mn/DOT County State Aid
Annual
Annual
Construction
Construction
Needs
Needs
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Annual
Annual
Construction
Construction
Allocation
Allocation
$259,325,597
$259,325,597
$279,568,555
$279,568,555
$282,186,458
$282,186,458
$294,906,411
$294,906,411
$305,978,605
$305,978,605
$321,389,994
$321,389,994
$347,626,686
$347,626,686
$364,718,533
$364,718,533
$387,233,574
$387,233,574
$427,542,352
$427,542,352
$479,824,306
$479,824,306
$486,733,110
$486,733,110
$519,263,941
$519,263,941
$536,902,096
$536,902,096
$551,001,578
$551,001,578
$175,484,710
$175,484,710
$185,649,698
$185,649,698
$196,009,829
$196,009,829
$204,136,037
$204,136,037
$212,775,730
$212,775,730
$200,534,226
$200,534,226
$214,235,060
$214,235,060
$214,242,904
$214,242,904
$212,846,929
$212,846,929
$215,700,279
$215,700,279
$217,455,379
$217,455,379
$229,236,941
$229,236,941
$243,585,211
$243,585,211
$264,018,492
$264,018,492
$281,152,293
$281,152,293
Unmet
Unmet
CSAH
CSAH
Needs
Needs
%
Unmet
Needs
$83,840,887
$83,840,887
32.3%
$93,918,857
$93,918,857
33.6%
$86,176,629
$86,176,629
30.5%
$90,770,374
$90,770,374
30.8%
$93,202,875
$93,202,875
30.5%
$120,855,768
$120,855,768
37.6%
$133,391,626
$133,391,626
38.4%
$150,475,629
$150,475,629
41.3%
$174,386,645
$174,386,645
45.0%
$211,842,073
$211,842,073
49.5%
$262,368,927
$262,368,927
54.7%
$257,496,169
$257,496,169
52.9%
$275,678,730
$275,678,730
53.1%
$272,883,604
$272,883,604
50.8%
$269,849,285
49.0%
$269,849,285
%
Unmet
Needs
32.3%
33.6%
30.5%
30.8%
30.5%
37.6%
38.4%
41.3%
45.0%
49.5%
54.7%
52.9%
53.1%
50.8%
49.0%
Local Response to Challenges
• Local property tax levies applied to road
and bridge construction and
maintenance have increased steadily
• Increased dependence on borrowing as
a finance strategy
• Deferred projects and maintenance
State Response to Challenges - Bonding
• Addition of the Local Road
Improvement Program
– Last year $10M
• Local Bridge Bonding
– Last year $30M
State Response – Chapter 152
• Gas Tax Increase – 8.5 cents
• Tab Fee Increase – removed cap
• MVST 60%/40% split roads/transit
Constitutionally Dedicated
Solution – Leverage Constitutionally
Dedicated Streams
• Increase State Aid and other targeted
state funding
• Authorize additional local revenue
generating authority
– Wheelage fee
– Local option sales taxes without referendum
requirement
Counties and Transit
Two authorities:
• Regional Rail Authority
• County Transportation Improvement
Board (CTIB)
County Transit Improvement Board (CTIB)
• In 2008, the 5 metro counties of Anoka, Dakota,
Hennepin, Ramsey and Washington imposed a 1/4 cent
sales tax for the purpose of expanding the transitway
system. (Light rail, commuter rail and BRT.)
• The tax generates about $100M/year. Since 2008, CTIB
has distributed $467M in grants.
• With grants to be awarded this fall, CTIB will have
committed about half a billion dollars to transitways.
Regional Rail Authorities (RRA)
• Authority to levy property taxes and contribute 10% of
the total capital cost of transitways. (Note: prior to CTIB
and the sales tax, this percentage was even higher.)
• RRA's also pay the costs of feasibility studies, alternatives
analyses, and early environmental work. These upfront
expenditures are significant. For example, Hennepin has
expended in excess of $25M for the SWLRT project for the
pre-preliminary engineering work.
NOTE:
If the region (CTIB and the Met Council)
decides to accelerate the development of the
"economically competitive" transit way
system, the 10% RRA capital contribution will
be a very significant property tax
burden. This will be a financial concern going
forward.
Abbey Bryduck
AMC Transportation Policy Analyst
[email protected]
651 789 4339