4.15.15 Presentation given by Messerli & Kramer

LEGISLATIVE UPDATE MESSERLI & KRAMER

April 15, 2015 Board Meeting

1

Senate Transportation Bill • SF 87 – Article 4 – Sales Tax Article – ¾ cent increase, 5 counties – Protects CTIB’s first ¼ % – 1/8 to counties for roads/transit, w/ nexus • Hennepin County limited to transit projects only

– Provides 8.5% of net proceeds to CTIB • Transitway Improvements • State’s 10%

2

Senate Transportation Bill • GEARS Board Eliminated • Met Council gets rest of money for projects consistent with the Council’s long-range transportation policy plan • Sets out priority use of funds • Repeals statute requiring state to pay 50% of operating costs of light rail transit that are not paid by the federal government

3

House Transportation Bill • HF 4 – Article 3 – Sales Tax Article – No new resources for Transit – Modifies priority of uses for CTIB funds • Must fully fund operations/maintenance on existing transitways the board has previously funded • Cannot award grants to continue work on new transitways unless all debt service and operating costs met • Repeals supplement but not supplant requirement

4

House Transportation Bill • Expands use of CTIB funds to include capital/operating assistance for bus operations and ABRT • Redefines transitway to guideway to include passenger rail, commuter rail, LRT, streetcars, highway BRT, express bus in a dedicated ROW and multi-modal stations serving two or more lines, does not include ABRT, limited stop bus service and express bus on roads (excludes pass rail) • Clarifies political subd can plan,conduct feasibility analyses, commence project development but may not complete until legislature acts 5

House Transportation Bill • Prohibits Council from issuing bonds backed by pledge of the MVST revenues • Provides for 100% of operating costs for LRT must be paid from non-state sources. Council may not use GF approps or MVST fund for LRT • All tax provisions sent to House Tax Cmte (48 shifts) • Increase in bus shelters by 50% paid by CTIB (not offered) • Honor system for fare collection (withdrawn) • CTIB/Met Council funds reinstated (defeated) 6

Other Bills of Interest • HF 1478 Garofalo/SF 1979 Thompson – Current .25 sales tax would not apply to sale/purchase of electricity/natural gas ($6.1m in 2013 dollars)

• HF1411 Hornstein/SF 1560 Dibble – Task Force on Metropolitan Governance • Bonding Update 7