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Transportation bill shifts funding; transit faces cuts while EV surcharge and bonding ease some highway shortfalls
Summary
MICA’s transportation representative told commissioners that transit took the largest share of general‑fund cuts, the transfer of motor‑vehicle sales‑tax to the trunk highway fund was slowed, an expanded electric‑vehicle surcharge will offset some losses, and bonding boosted local road and wetland mitigation funding.
Amber Backus, MICA's transportation representative from United Strategies, briefed the board on the transportation omnibus agreed during the special session. She said House and Senate targets diverged and leadership ultimately followed a senate general‑fund target that required roughly $113 million in transportation general‑fund reductions, causing transit to bear heavy cuts. She explained the scheduled transfer of motor‑vehicle sales‑tax to the trunk highway fund was slowed (phased down to 41% and lower in later years) and that the legislature increased the EV surcharge (currently $75) with estimates Backus gave of $23 million in 2026‑27 and $53 million in 2028‑29 that will flow to trunk‑highway purposes.
Backus highlighted a concrete local win: $3,000,000 in general‑fund money for the Local Government Road Wetland Replacement Program and larger than expected bonding dollars for local roads and bridges (including $42 million for the local road improvement program and $20 million for local bridges). She warned commissioners that cuts to Greater Minnesota transit totaled $22,000,000 for the upcoming biennium and offered to follow up on distribution details for Crow Wing's combined transit service with Brainerd.
