Minnesota Senate Democrats have made public a transportation plan that would raise the state’s fuel tax a nickel a gallon and increase vehicle license tab fees, according to local media.
The proposal is expected to meet stiff resistance since House Republicans and Gov. Tim Pawlenty are against boosting the fuel tax.
The Senate plan would spend $1.4 billion in state money during the next two years, the West Central Tribune reported. Pawlenty proposes borrowing $1.1 billion for road improvements, but would not raise any transportation-related taxes or fees. Both plans count on advance money from the federal government.
The Democrats would raise $820 million in new fuel tax payments and $585 million in license tab fee increases.
The governor’s proposal, which has been approved by the House Transportation Finance Committee, would acquire $210 million in state Transportation Department savings over the next five years; the Senate plan would obtain $150 million over two years.