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Action Alert: Transit Proposed to be Cut - Again!

mntransit.org


Transit Proposed to be Cut - Again!

You can take action on this alert by reading the information below and following the directions at the bottom.

Issue

Proposal would cut budgets and keep motor vehicle sales tax revenue at 2004 funding level

Background

With a forecasted deficit of $160 million (compared to $4.2 billion last year), the Governor and the legislature need to find a way to balance the budget. The Governor has proposed that all state agencies be cut by 3%. This includes both the Metropolitan Council and MnDOT. For the Metropolitan Council, the 3% translates into a $1.7 million cut with most of that hitting transit services.

More importantly, the House has passed legislation out of the Transportation Committee and the Tax Committee that would change the motor vehicle sales tax revenue dedicated to transit from a percentage of MVST to a flat dollar amount. This means that transit funding from MVST will be frozen at 2004 levels and will not increase with inflation. Projections show that MVST revenue is expected to increase in the future and transit budgets would not see any of that growth. This will have a huge negative impact on transit systems all over the state with a projected loss of $6 million for this year alone.

Message To Be Sent To
Your message will be sent to each of the following targets:

Governor
Your State Representative
Your State Senator
Message
A sample message appears below, which you may edit before sending.

Transit Systems Can't Take Another Funding Cut


Dear Governor,

Transit systems all across the State of Minnesota have participated in the efforts to balance the state's budget in the face of budget deficits. Our transit budgets have been cut three years in a row. But we simply can't take yet another budget cut this biennium. Fares have been increased, routes have been reduced, people have been laid off. More budget cuts will cripple our bus systems.

We're particularly concerned about a proposal in the House Transportation Finance bill that would change the amount of revenue dedicated to transit from the motor vehicle sales from a percentage of MVST to a flat dollar amount. This means our revenue will be frozen at 2004 levels -- permanently. This translates into a $6 million dollar cut for 2005.

When the Legislature eliminated the transit property tax levy in 2001, we were told that the revenue would be replaced with funding from the motor vehicle sales tax. If this proposal goes through, that revenue will not replace the amount of revenue that would have been generated through the property tax levy and transit systems will be going backward.

Please keep the promise made to replace the transit property tax levy with a level of funding from the motor vehicles sales tax that actually replaces that lost revenue. Transit sytems can't take any more cuts without leaving Minnesota residents stranded.

I look forward to hearing from you on this important issue.

Sincerely,

Your name and address here


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