Business & Tech

Twin Cities Chambers Condemn Failure of Transit Tax

The proposed sales tax for transit improvements did not make it into the final transportation bill.

The presidents of the Minneapolis Regional Chamber and Saint Paul Area Chamber on Sunday condemned the Legislature’s inability to approve a dedicated funding source to expand Twin Cities transit.

Last month, the Minneapolis and Saint Paul chambers endorsed a metrowide sales tax of up to half a cent that would have funded transit improvements.

Transit tax proposals presented during the session ranged from a quarter of a cent to three-quarters of a cent. However, a sales tax for transit did not make it in to the final version of the Omnibus Transportation Finance bill.

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The bill did include $37 million to keep the Southwest Light Rail Transit project moving forward. But Minneapolis chamber President Todd Klingel and Saint Paul chamber President Matt Kramer said the Legislature should’ve done more. They released the following joint statement:

It’s unfortunate that the legislature was unable to make significant progress this year towards building a comprehensive transit system. We know from conversations, polling, and research that businesses and citizens are demanding a 21st century transportation system.

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We’re pleased that funding was included to keep Southwest LRT on track. This extension of the light rail system will serve one of our region’s key economic corridors and will help connect more workers with job opportunities. SWLRT has been designated as a top project by the federal government and this state support is an important step forward.

Although this funding is good news, we believe it is important to make an ongoing investment in a transportation system that will help us compete with our peer cities and keep and grow jobs here. The Itasca Project’s study found a complete transit system would produce regional benefits of $2 to $9 billion. For the Twin Cities to thrive, we need to find a way to make that system a reality.


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