Statement on Callison 1: Proposed 2020 Budget Amendment
Thank you to everyone who reached out to our office yesterday, 11/25/19, about the Commissioner Amendments proposed to the 2020 Budget. The item we received the most feedback on is “Callison 1: Utilization of Unprogrammed Transportation Sales & Use Tax Collections.” Thank you to the hundreds of people who interacted, asked questions, and shared—your participation is an integral component to strong governance.
The overall concern seems to be that this amendment would create a permanent funding stream for roads and bridges from the Transportation Sales & Use Tax—a tax that has been historically used for transit projects. This statement addresses many of the issues you brought forward, and outlines the approach I will take in today’s meeting.
History of the Transportation Sales and Use Tax
After the dissolution of Counties Transit Improvement Board (CTIB) in 2017, Hennepin County passed the Sales and Use Transportation Tax Implementation Plan for the purpose of funding transit in Hennepin County. The County designates the following as eligible to be funded with the proceeds of this tax under Minnesota Statutes Section 297A.993:
A portion of the capital costs of the Green Line Extension (Southwest), Blue Line Extension (Bottineau), Riverview Corridor and Orange Line transit projects.
A portion of the operating costs of the Green Line (including any extensions), the Blue Line (including any extensions), Riverview Corridor, Orange Line, and Northstar transit projects.
Capital costs associated with other transportation or transit projects or improvements, as identified in Hennepin County’s Capital Improvement Program (CIP), and operating costs, to the extent designated in the future by the County Board after a public hearing.
Unprogrammed Dollars from the Transportation Sales and Use Tax in 2020
At the end of 2020, after programmed expenses from the first two uses listed above, approximately $98M will remain in Transportation Sales and Use Tax collections. I was disheartened to learn this—it means Hennepin does not have enough transit projects queued up to use what we collect through this tax every year. Beginning next year, I will work with County staff to ensure that Hennepin develops a more extensive transit plan, so that we dedicate more of these funds toward transit uses.
Unprogrammed dollars collected from this tax are eligible to be used toward the third use listed in the section above: “transportation or transit projects or improvements, as identified in Hennepin County’s CIP,” which brings us to the action in front of us today.
The Action Before Us in Callison 1
Today's action is Commissioner Callison’s Amendment 1, which directs staff to do work within the authorities of the current policy, is not a decision point for any specific projects, nor is it a blanket approval. This amendment asks Hennepin staff to create a proposal for utilization of unprogrammed dollars from the Transportation Sales and Use Tax. The plan must be presented to the Board in Q1 of 2020 and include a briefing schedule, recommendations for funding levels, a plan for project identification and prioritization, a plan for appropriate staffing levels for increased project delivery, a timeline for board approval, and a timeline for the public hearing process.
First, I am in favor of this amendment because it creates a more transparent process for these dollars. Since a public hearing is required for any project to move forward, the approval would take place over several weeks or more. Through this, I see benefits for everyone—staff expertise is utilized for the project recommendations, community members can voice opinions through the public hearing, and the County Board is able to consider decisions over time and with data in front of us.
Second, I'm in favor of this amendment because it opens up an opportunity to be imaginative about how we implement the current policy. I'm grateful that Hennepin has prioritized these funds toward transit, and I expect the original intention of this policy to play a key role in the projects staff presents. Below, I outline some considerations for staff as they review projects, which are especially important because the County's infrastructural needs continue to grow more complex—due to climate change, population growth, density, and more.
Specifically, I recommend that staff prioritizes projects that:
Advance Hennepin's regional transit commitment—such as designing roads to be more transit ready (like Lyndale Ave S), including specific transit projects (like the D Line), or selecting areas that could increase local economic development (like Lowry Ave NE).
Do so in alignment with Hennepin’s Complete Streets Policy. These projects should allow the County to be responsive to recent events, by investing in the safety of pedestrians and cyclists.
Have been delayed or present unique funding challenges, such as the dozens of aging bridges presented to the Board a couple months ago.