A reader raised a question in responding to yesterday’s post Let your voice be heard – Minnesota GO: “How can MN build infrastructure with a $5 billion deficit?”
I think Minnesota, or the US in general, cannot afford not to build a better infrastructure. Even public transportation in China is much more advanced than in the US. Here is a post I wrote on this topic after my trip to China last summer.
Yes, Minnesota has an estimated $5.03 billion two-year budget deficit. But Mn/DOT’s funding comes mostly from designated sources, almost half of its funding comes from the fuel tax. Approximately 80 percent of Mn/DOT funds are appropriated by the legislature and 20 percent is statutorily appropriated.
The following charts show where Minnesota’s transportation funding comes from and where it goes (for fiscal Year 2010)
Sources of Minnesota state transportation funds
Uses of Minnesota state transportation funds
Mn/DOT is a multi-modal agency. Its activities include transit; aeronautics; freight and commercial vehicles; construction; maintenance; and operation of 12,000 miles of state highways. Approximately 30 percent of Mn/DOT’s appropriations are state aid to local governments for road and bridge projects and other activities.
*Source of information: Mn/DOT Funding and Finances