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Transportation Finance Advisory Committee Minnesota Moving Ahead: Transportation Funding and Financing For the Next 20 Years December 2012 Minnesota Moving Ahead Transportation Funding and Financing for the Next 20 Years Minnesota’s Transportation Finance Advisory Committee (Tom Sorel and) Bernie Arseneau, MnDOT Acting Commissioner and TFAC Chair Senator Joe Gimse Senator Scott Dibble Representative Mike Beard Representative Terry Morrow (Mark Phillips and) Katie Clark, Acting Commissioner, Department of Employment and Economic Development Susan Haigh, Chair, Metropolitan Council Cal Brink, Executive Director, Marshall, MN Chamber of Commerce Charlie Zelle, President and CEO, Jefferson Lines Dan Riley, Vice President, Property Development Operations, Target) Art Rolnick, Senior Fellow, University of Minnesota (formerly with Federal Reserve) Cory Hoeppner, Director, RBC Capital Markets Shawn Mason, Mayor, International Falls, MN Adolph Ojard, Executive Director, Duluth Seaway Authority Shar Knutson, President, AFL-CIO Peter McLaughlin, Commissioner, Hennepin County Toni Carter, Commissioner, Ramsey County Harlen Madsen, Commissioner, Kandiyohi County Jan Rintamaki, Director, Government Relations, Polaris Industries Inc. 2 Minnesota Moving Ahead Transportation Funding and Financing For the Next 20 Years A Report Addressing Transportation Needs for the Citizens of Minnesota December, 2012 By the Minnesota Transportation Finance Advisory Committee www.mndot.gov/tfac/ To request this document in an alternative format, please call 651-366-4718 or email [email protected]. Table of Contents Minnesota Moving Ahead: Transportation Funding and Financing ................................................ 1 For the Next 20 Years ........................................................................................................................... 1 EXECUTIVE SUMMARY .................................................................................................................................. 8 Introduction .............................................................................................................................................. 8 Background ............................................................................................................................................... 8 Problem Statement ................................................................................................................................... 8 Process ...................................................................................................................................................... 9 Conclusions ............................................................................................................................................. 10 Recommendations .................................................................................................................................. 10 System-Wide Revenue Options for Roads .......................................................................................... 11 Transit-Dedicated Sales Tax Options .................................................................................................. 11 Local Government Revenue Options .................................................................................................. 11 Project-Level Revenue Options ........................................................................................................... 12 Summary ................................................................................................................................................. 12 I. INTRODUCTION ................................................................................................................................... 13 Mission .................................................................................................................................................... 13 Methodology ........................................................................................................................................... 14 Scope ....................................................................................................................................................... 14 Process .................................................................................................................................................... 14 Stakeholder Input ................................................................................................................................... 15 Background ............................................................................................................................................. 15 Purpose of this Report ............................................................................................................................ 16 Problem Statement ................................................................................................................................. 16 Efficiencies .............................................................................................................................................. 17 II. MINNESOTA’S TRANSPORTATION SYSTEMS: DESCRIPTION AND PERFORMANCE ............................ 19 Introduction ............................................................................................................................................ 19 State Transportation Funding Overview ................................................................................................. 19 Highways ................................................................................................................................................. 23 State Highway System ......................................................................................................................... 23 State County Aid and Non-State-Aid System ...................................................................................... 25 Municipal State Aid and Non-State-Aid System ................................................................................. 26 Minnesota Moving Ahead Transportation Funding and Financing for the Next 20 Years Township Roads .................................................................................................................................. 26 Transit Systems ....................................................................................................................................... 27 Greater Minnesota Transit .................................................................................................................. 27 Metropolitan Area Transit .................................................................................................................. 28 Rail, Ports and Waterways ...................................................................................................................... 32 Passenger Rail ......................................................................................................................................... 33 Airports ................................................................................................................................................... 35 State Airports ...................................................................................................................................... 35 Metropolitan Airports Commission (MAC) ......................................................................................... 37 III. NEEDS ANALYSIS AND FUNDING GAP ............................................................................................. 38 Trunk Highways ....................................................................................................................................... 38 County State Aid System ......................................................................................................................... 42 Municipal State Aid System and City Streets .......................................................................................... 44 Greater Minnesota Transit ...................................................................................................................... 44 Metropolitan Area Transit Needs ........................................................................................................... 45 Freight - Rail and Ports ............................................................................................................................ 50 Passenger Rail ......................................................................................................................................... 51 State Airports and the Metropolitan Airports Commission .................................................................... 53 Summary of Estimated 20 Year Unmet Needs ....................................................................................... 54 IV. IDENTIFICATION OF CORE FUNDING AND FINANCING PRINCIPLES ................................................ 56 Overview ................................................................................................................................................. 56 Principles for the generation of transportation funds ........................................................................ 56 Principles for allocation and expenditure of transportation funds .................................................... 57 V. CONCLUSIONS ....................................................................................................................................