Senate committee advances transportation omnibus with delays to asset metric, metro loan authority for Highway 65 work

The Minnesota Senate Finance Committee on April 25 recommended passage of the transportation omnibus (Senate File 2082) after adopting several amendments that adjust finance language, delay a performance metric for the Department of Transportation and authorize a loan arrangement to coordinate major Highway 65 improvements with Metro Transit work on the planned F Line.

The measure, offered by Sen. Scott Dibble, preserves most of the bill’s policy and technical language but makes multiple conforming changes to appropriations and timing. Committee members approved a late amendment to delay implementation of the “asset sustainability ratio” for the Department of Transportation, moved language to remove a U.S. Highway 8 bonding provision from the bill, and approved a Metro Council loan provision to synchronize Highway 65 reconstruction with planned rapid-transit investments.

Why it matters: The bill directs how state transportation dollars will be used in the coming biennium and affects distribution of revenues collected for highways, metropolitan transit and related projects. The loan provision responds to long-standing complaints that roadway and transit work have sometimes been built sequentially rather than concurrently, leading to repeat construction in the same corridor.

Most important facts

- Amendment A46: Committee adopted an amendment that delays the Department of Transportation’s asset sustainability ratio requirement. According to testimony from staff, the A46 “delays it until the beginning of fiscal year 02/1930” so stakeholders can study the metric and assess budgetary impacts on the State Transportation Improvement Program and the Statewide Transportation Improvement Program. Sen. Pappas moved the amendment and it passed by voice vote.

- Metro loan for Highway 65/F Line: The committee added language authorizing the Metropolitan Council to loan up to $250 million of metropolitan-area sales tax proceeds to MnDOT to fund corridor improvements on Trunk Highway 65 so they can be coordinated with planned rapid-transit (F Line) infrastructure. The bill requires a mutually agreed loan agreement, including repayment terms. Judd Shetnan, government affairs director for the Metropolitan Council, told the committee the council expects the loan could include interest; Sen. Pratt successfully offered a floor amendment specifying a 0% interest loan and the amendment was accepted as “friendly.”

- Revenue and appropriation fixes: Staff and agency witnesses explained A45 and an amendment-to-amendment A51 are technical adjustments that add riders and correct appropriation citations so revenue from the electric vehicle surcharge and other changes flow to county-state-aid and municipal-state-aid accounts as intended.

- Bonding and program carveouts: Senator Pappas offered A52 to remove a U.S. Highway 8 “bonding” impact from the bill because inclusion would have required a two-thirds vote for constitutional bonding changes; A52 passed by voice vote.

- Microtransit language removed: The committee removed a microtransit capital-only restriction (A49), restoring flexibility for opt-out transit providers to use metro-area sales tax funds for operations as well as capital if the providers prefer. Senators said stakeholders and providers asked for that change.

- Washington Avenue pedestrian bridge: The bill included a $9 million appropriation identified for the Washington Avenue pedestrian/pedestrian bridge project; the appropriation was described as an award to the University of Minnesota for a joint project with Hennepin County, and committee members emphasized the funds would be locked for bridge work only.

Discussion highlights and concerns

Committee discussion focused on protecting highway-dedicated revenues while accommodating multimodal investments. Sen. Jasinski, Sen. Drazinski, and other members expressed concern about any expansion of the constitutional or statutory definition of “highway purposes” that could divert Highway User Tax Distribution Fund (HUTDF) revenues to non-highway projects. Sen. Dibble framed his policy language as an effort to consider “transportation for all users” and asked that debates continue in conference committee.

Several members noted stakeholder outreach: Sen. Gable (Gibble in transcript) said stakeholders were unhappy but understood delaying A46 for study while the bill moves forward to conference.

Votes and outcome

The committee approved the package as amended and instructed staff to make technical and conforming changes. Voice votes were used for individual amendments unless noted; the final motion to recommend passage was adopted by voice vote.

Ending

The committee recessed briefly after the vote to prepare materials for the next bill on the agenda. The transportation omnibus now moves on for further consideration consistent with the Senate’s calendar and the committee’s instruction to staff for non-substantive drafting changes.

Quotes

- "The A46 amendment delays it until the beginning of fiscal year 02/1930," Mr. Greenfield said during debate on the asset-sustainability ratio amendment. - "We do believe that this would include the ability for the council to charge interest on that loan," Judd Shetnan, government affairs director for the Metropolitan Council, said when describing the proposed Metro Council loan. - "If it's the position of the Senate that it be a no interest loan, we'd be happy to work with the legislature on that as well," Sen. Dibble said after Sen. Pratt offered the oral amendment making the loan 0% interest.

(See 'Actions' and provenance sections for formal motions, amendment results and transcript evidence.)