Policy Advancement: Transportation

The Citizens League is advancing transportation policy based on our 2005 report Driving Blind. We call for more choices and more transparent funding mechanisms in order to create a transportation system that is fiscally sustainable and responds to the choices of users and beneficiaries. Once we begin paying more directly for the transportation costs we impose and the transportation benefits we receive, the choices we make will better define and fund future transportation investments.

More Transparent Funding for More Choices
Users and beneficiaries of Minnesota's transportation system should pay more directly through several more transparent funding options.

  • Free-flow pricing: Wherever congestion is significant enough, a single lane where a solo driver can buy free flow should be an available choice.
  • Value capture (TIF mechanism): When a transportation improvement increases the value of land, the amount of property tax revenue from that increase should be captured to help pay for the improvement.
  • Value capture (benefit receipt tax): At the point of sale of land that benefits from a transportation improvement, the state should tax a portion of that gain to pay for the transportation improvement on the basis of the increase in value.
    • In its 2008 session, the Legislature appropriated $300,000 for a study of value capture by the University of Minnesota's Center for Transportation Studies (HF 2800). Included will be the exploration of two recommended mechanisms from Driving Blind among other types of value capture.
  • Vehicle fees based on road impact: A study of the impact of all vehicles on the cost of maintaining and constructing our roadways and bridges must be undertaken in 2008 to implement a new fee structure in 2009.
  • Fees on large parking lots: Develop a fee structure on parking lots with more than 100 spaces, and use the revenue to support transit and employer incentives.

Provide Transportation Choices on a System-Wide Basis
All Minnesotans who pay the costs for congested roadways should have these choices and more:

  • Significant transit improvements that create free flow conditions for transit
  • Choice for solo drivers to pay for free flow during congested times, or to continue to drive in the congested roadway for "free"
  • Incentives for a greater number of employers to support flex-time and telecommuting options

Fund and Implement the Urban Partnership Agreement (UPA)
Minnesota has a rare opportunity to model how transparent funding and transportation choices can be integrated through free-flow pricing, increased transit options and employer incentives. With $55 million in state matching funds provided in the 2008 legislative session (HF 2800 and HF 380), the federal government is providing $133 million, mainly to build facilities for bus rapid transit (BRT) on I-35W from downtown Minneapolis to Lakeville as Minnesota implements free-flow pricing on that segment of freeway. Language to authorize the UPA was passed as a stand-alone bill (SF 3058).

In this corridor, carpool lanes (also known as the High Occupancy Vehicle or HOV lanes) and road shoulder capacity will be converted to priced lanes with similar function to the MnPass lane on I-394 west of downtown Minneapolis. Dynamic pricing in these lanes will provide consistent free flow of traffic in part of the roadway during peak hours. In conjunction, transit and other choices will be increased. This will also provide better flow for transit. BRT service will run from Minneapolis to Lakeville, new park and ride stations will be built, and flex-time options will be expanded for employees who work in the corridor.

The UPA will be a demonstration of free-flow pricing along one of the regions most congested corridors and it should be the basis for expanding discussions of region-wide pricing and transit improvements.


Resources

Member advancement meetings


February 8, 2008