February 15, 2008

Current Transportation Funding Bill is Problematic

Sparing no time on the matter, a transportation funding bill was quickly introduced and testimony was given on the first day of the 2008 Legislative Session. Sen. Steve Murphy (DFL-Red Wing) and Rep. Bernie Lieder (DFL-Crookston) unveiled the bill as the “Safe Roads and Bridges Improvement Act”.

In its entirety, this funding package raises more than $8 billion for Minnesota’s transportation system through an assortment of tax and fee increases, including gasoline tax, vehicle license tab fees and metro sales tax. While the MRCC supports increased investments in Minnesota’s transportation systems, several provisions in this bill, including a half-cent sales tax for metro transit, makes it unacceptable. The MRCC does not support a sales tax increase of this magnitude, or creation of a Joint Powers Board to oversee the transit funding in the metro area. Another level of bureaucracy is not needed.

Transportation funding is the Chamber’s top priority for 2008. The Chamber will continue to work with legislative leaders and our coalition partners to find a compromise that is both moderate and balanced.

Click to find more information on House File 2800 or its companion bill Senate File 2521.

MN Orchestra Hall Funding Is Necessary and Appropriate

Earlier this week, Rep. Margaret Anderson Kelliher (DFL - MPLS) and Sen. Richard Cohen (DFL- St. Paul) introduced legislation that appropriates money for the pre design functions of Orchestra Hall and Peavey Plaza renovation. Specifically, the $3 million appropriation would come from the issuance of state bonds. In November, the City of Lakes Chamber Board heard from Minnesota Orchestra Hall officials on the project and need for state investments. After discussion and deliberation, both the CLCC and the MRCC Board of Directors unanimously supported the funding proposal.

Click to find more information on House File 2562.

House and Senate Sends Sales Tax Increase to Ballot

Sponsored by House Majority Leader Tony Sertich (DFL-Chisholm) and Senate Majority Leader Larry Pogemiller (DFL-Mpls), both the House and the Senate approved a bill that would place on the ballot a measure to increase the state's sales tax by three-eights of 1 percent and constitutionally dedicate the money to arts and the environmental programs. The bill was approved 85-46 by the House and 46-16 by the Senate. The ballot question will be decided by the voters in the Nov. 4 general election.

The funding would be divvied up as follows:

• 33 percent ($91.1 million) to protect fish and wildlife habitat;
• 33 percent ($91.1 million) to clean up state waters, including 5 percent for drinking water;
• 19.75 percent ($54.5 million) for arts and cultural heritage;
• 14.75 percent ($39.3 million) for parks and trails.

To watch a webcast of the floor session, click here.

Governor Delivers State of the State Address

On Wednesday, Governor Tim Pawlenty delivered this year’s State of the State address from St. Cloud, Minnesota.  Among his statements, the Governor discussed his position on tax increases and other issues important to the business community.  Specifically, he stated the need to restructure our current tax system to in courage job growth, income generation, investment, entrepreneurial activity, research and exports.  The Governor also addressed health care reform proposals, educational learning and transportation. To read the Governor’s speech, click here.  To view the webcast, click here.

For answers to questions or to provide comments,
call (612) 370-9100 or visit the website at www.minneapolischamber.org
info@minneapolischamber.org