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The state Legislature is considering Governor Walz’s proposal to add 20 cents per gallon to Minnesota’s gas tax over the next two years.
Walz believes the tax is essential to repair Minnesota’s crumbling roads and bridges, as he calls them. The gas tax, if implemented, would eventually raise the gas tax to 48.6 cents per gallon. The governor proposes to increase the tax by a nickel every six months or so for two years. Then, he wants the gas tax tied to inflation.
Fixing roads and bridges has broad popular appeal. Walz touted his position loudly during his campaign, and he hasn’t been shy in telling the Legislature that Minnesotans elected him governor knowing he’d work to raise the gas tax.
Republicans point out that they kept control of the state Senate, in part, because they opposed the gas tax.
Minnesotans already pay a significant amount of taxes through user fees, property taxes, income taxes and license fees. While the gas tax is constitutionally dedicated to transportation, there is nothing preventing the Legislature from allocating some of that other tax money for roads, bridges, and other transportation infrastructure.
If the gas tax were used only for gas-related transportation, we wouldn’t need a gas tax increase. But it’s not. Other transportation needs are partially supported by the gas tax, such as light rail and the proposed Duluth-to-Minneapolis train, also known as the Northern Lights Express. These projects have little to do with the “spirit” of the gas tax, which is to provide revenue for keeping the roads vehicles use in decent shape. Diverting gas tax revenue to other transportation projects is not good governing, even if some of those projects are otherwise worthwhile.
In fact, the Legislature doesn’t allocate enough money from the general fund toward transportation. Transportation, along with welfare, security, and education are the core functions of state government. Tax revenue — even revenue from other sources besides gas tax and vehicle registration fees — should be allocated to transportation issues. For example, expanding public transportation in urban areas would reduce the need to widen highways, add roads and build expensive bridges. If that happens, the gas tax increase won’t be necessary.
Some point out that the price of gas is as volatile as the product itself: not too long ago, gas was over $4 per gallon and not many predicted it would go down much. More recently, gas was under $2 per gallon and has risen 70 cents since then. A mere 20 cents per gallon to the state is no big deal, they say.
They are right. Now is the best time to raise gas taxes, as the economy is strong and gas prices are bouncing around, which will make the increase unnoticed.
But I think that argument misses the point: there are better ways to fix our roads. It’s nice to have the high-quality roads we have, but in some remote areas, expensive roads (and the routine maintenance that comes with them) just aren’t needed.
I may regret my position someday. If some alternatives are not pursued, tax revenue may soon be insufficient to keep our current transportation systems in good repair. But I am optimistic that there’s a better solution than a gas tax increase.
And, at 20 cents per gallon, the tax is simply too much, too fast. A more modest proposal, or no gas tax increase at all, is best for Minnesota.
Pete Radosevich is the publisher of the Pine Knot News community newspaper and an attorney in Esko who hosts the talk show Harry’s Gang on CAT-7. He can be reached at [email protected].