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Senate Bill Would Reduce City Cost Participation in Trunk Highway Projects
The League-supported measure would prohibit the Minnesota Department of Transportation from requiring a local government to pay for project costs within a trunk highway right-of-way.
A bill heard in the Senate Transportation Committee on Feb. 5 would prohibit the Minnesota Department of Transportation (MnDOT) from requiring a local government
to pay for project costs within trunk a highway right-of-way, including utility relocation costs, regardless of facility ownership. The measure, SF 285 authored by Sen. John Jasinski (R-Faribault), was discussed and laid over for possible inclusion in an omnibus transportation funding package.
Testimony and background
Richfield Mayor Mary Supple testified in favor of the bill on behalf of the League, while Elk River’s public works director and chief engineer spoke in support as a representative of the City Engineers Association of Minnesota.
The bill would address challenges experienced by cities of all sizes, which face steep cost share obligations when MnDOT engages in trunk highway improvements within city limits. The current MnDOT cost participation policy forces local governments to contribute to trunk highway projects regardless of timing or ability to pay. Cities have authority withhold municipal consent, the process MnDOT follows for municipal approval of final layout for a project on a trunk highway, but trunk highway projects are typically regional in nature and require cooperation by multiple local governments.
Cities facing cost participation obligations often shift funds from other priorities such as street maintenance on their own systems. The current system puts additional pressure on local budgets and property taxpayers.
As drafted, the bill has a blank appropriation. Legislators and stakeholders understand the bill would need to be funded, and the price tag could be prohibitive for the state. The measure will not likely be revisited until budget targets and priorities are negotiated.
Your next step
City leaders are encouraged to stay informed about transportation fundings proposals and other legislative developments by subscribing to the Cities Bulletin e-newsletter and reading the latest news on the League’s website.