Failure to invest in Minnesota's infrastructure and transportation needs is costing Duluthians an extra $400 per year and is stunting the state's economy, a St. Paul-based group said Wednesday.
In a study released Wednesday, members of Minnesota 2020, a public policy think tank, criticized Republican Gov. Tim Pawlenty and the Minnesota Chamber of Commerce for not making the issue more of a priority.
They presented highlights of the study Wednesday afternoon during a stop at Monaco Air Duluth.
Board chairman Matt Entenza, a former state Democratic-Farmer-Labor politician, said the state has not spent enough money on roads, bridges and other transportation projects and is having its economy sapped by gridlock, transportation inefficiencies and a compromised ability to attract new businesses.
A lack of investment in transportation and infrastructure projects also is costing Northeastern Minnesota residents $200 extra in car maintenance because of poor road conditions and an extra $200 in property taxes, since other funding avenues for transportation expenses have not been approved.
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"All Minnesotans are paying a lot of money out of their pocket for inaction," Entenza said.
Entenza said the most pressing transportation issue in Northeastern Minnesota is improving the condition of the region's roads.
"As both a port city and a key hub for Northeastern Minnesota, the investment in roads is essential for the economic survival of Duluth. Businesses are not going to invest if the quality of roads continues to decrease," he said.
Bob Zelenka, executive director of the Minnesota Grain and Feed Association, said improving road conditions would facilitate the movement of grain into the port of Duluth.
"What we're running into is some roads that are narrow, they may be bumpy, we have bridges that are restricted, we have spring weight restrictions ... those kind if infrastructure improvements need to be made to help us be more competitive," he said. "In a world market, every little bit of efficiency improvement helps a lot."
To raise transportation and infrastructure funds, Minnesota 2020 calls for several new taxes and fee increases, including:
A gas tax increase of at least 10 cents per gallon.
Higher vehicle registration fees, especially on "newer luxury cars."
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Authority for counties to levy "wheelage taxes" of at least $20 per year.
A sales tax increase of up to half a cent in counties that vote to approve it.
Members of Minnesota 2020 said that most of the taxes and fees are arranged on a "drive more, pay more" system, so those who drive most pay more than those who don't drive as much.
They also said implementing their plan would cost only $270 per person -- less than the $400 they say "inaction" is costing each person now.
"The evidence is overwhelming that it will actually help our economy," said Conrad deFiebre, a transportation fellow with the group.
A spokesman for Pawlenty said the governor is interested in improving the state's transportation infrastructure, but doesn't think Minnesota 2020's plan is the way to do it.
"In a time of $3-per-gallon gas and family budgets that are already stretched, Governor Pawlenty doesn't believe we should be piling on a large number of tax increases like Minnesota 2020 proposes," spokesman Alex Carey said in a prepared statement.
