Hennepin County is no longer on the hook for the roughly $25 million a year it was spending to subsidize several transit lines, thanks to a change in state law that shifts those costs to a newly increased sales tax.
The County Board is expected to sign off Tuesday on changes to contracts with the Metropolitan Council that end operational subsidies for the Green and Blue light-rail lines, the Northstar commuter rail and Orange Line Bus Rapid Transit.
"That's great news and certainly provides some opportunities for us to do some amazing work moving into the future," said Commissioner Kevin Anderson, who chairs the County Board public works committee.
Starting Oct. 1, a 0.75% increase in sales taxes in the Twin Cities metro will cover the cost of operating the transit lines that Hennepin County started subsidizing in 2017. State officials estimate the tax increase will generate more than $500 million a year for transit.
The shift is part of transit funding changes approved this spring by the Democratic-Farmer-Labor Party led state Legislature. Lawmakers approved two metro sales tax hikes — 0.75% for transit and 0.25% for affordable housing.
Hennepin County had committed to paying 50% of the operating costs of the Blue Line, 30% of the Green Line, 43% of the Orange Line and 9.3% of the Northstar rail.
By ending the subsidies Sept. 30 the county expects to recoup about $3 million it had planned to spend on transit operations and maintenance through the end of the year. The savings comes after the county pays about $3 million in previous Orange Line costs, dating to its opening in 2021, which had not previously been paid.
Ramsey County planned to pay $6 million in Green Line subsidies in 2023, county officials said.
