Wednesday, February 13, 2008

Minnesota: 20 years behind in transportation investment

Growth & Justice, a "progressive" economic think tank in Minnesota, claims that Minnesota is 20 years behind in transportation investment. According to their research, if the state had kept up with its highway funding in 1986, "adjusting for inflation and dramatic growth in highway usage, it would have invested $13.89 billion more over the last 20 years."

The complete report is titled “Twenty Years Behind: Highway Spending & Revenues by Minnesota’s State Government, 1986-2006.” According to the report, the trend line for overall highway spending in Minnesota lags behind that for overall spending by all states combined.

Over the years, Federal highway funds to Minnesota declined significantly, adjusted for inflation and miles traveled. The trend is driven in part by a problematic formula of federal gas tax distribution, which was recently fixed by Congress, and in part by the fact that federal gas tax revenue has failed to keep up with inflation for the rate has not been increase for many years.

Regarding own-source revenue, Minnesota's Motor Fuel Tax, a major source of the state Highway Fund, dropped by more than a third from 2006 to 1986.

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