Lawmakers on Sunday sent the governor a $1.3 billion deal bolstering Minnesota's extensive transportation network over the next two years — an agreement that Democrats called "historic," while Republicans fumed over a last-minute move that would boost the state's gas tax.
The House passed the measure 69-61 Sunday following vigorous debate. The Senate soon followed, passing it on a party-line vote with Sen. Eric Pratt, R-Prior Lake, absent.
If Gov. Tim Walz signs it as expected, the bill would index the gas tax to inflation, resulting in a 5-cent increase over the current rate of 28.5 cents a gallon by fiscal year 2027. The bill being debated on Sunday would also raise a metro-area sales tax to fund transit projects and add a 50-cent fee on deliveries over $100.
The gas tax increase would generate an estimated $155 million over two years.
"So many of our [transportation] needs were put off for so long," said Rep. Frank Hornstein, DFL-Minneapolis, who chairs the House Transportation Finance and Policy Committee. "We couldn't afford to do nothing. Successful regions have great infrastructure."
But Waseca Rep. John Petersburg, the lead Republican on the transportation committee, characterized the gas tax increase and other fees as "regressive," hurting "those who are having the most troubles."
Walz said indexing the gas tax to inflation will give the state a more reliable transportation funding source over the next 20 years. Walz, whose proposal to raise the gas tax in 2019 went nowhere under divided government, pushed back on the notion that Democrats "overreached" this year.
"It's not an overreach to fix the roads," Walz said.