Pioneer Press Tue, 25 Mar 2008 22:54:59 -0600
Taxes OK'd in Ramsey, Anoka counties: A closer look at the votes. Page 5A Fight erupts over new sales taxes for transit
Article Last Updated: 03/25/2008 11:54:59 PM CDT What did you think would happen? On Tuesday, the day some cheered passage of new taxes for transit projects, partisan sparring broke out over how the new money â" perhaps $100 million a year â" would be spent in a dumpy economy. It's not about one train project versus another but whether a sales tax hike and motor vehicle tax enacted by some Twin Cities counties should be used to patch a possible hole in the Metropolitan Council's transit budget. The squabble, echoing from the Anoka County Government Center to the Capitol, could mean the difference between fare increases and service cuts on Metro Transit buses and whether the planned Central Corridor light rail linking St. Paul and Minneapolis is delayed. On Tuesday morning, commissioners in Anoka and Ramsey counties adopted a 0.25 percent sales tax increase and a $20 per-vehicle excise sales tax, creating the state's first dedicated funding source for new train, bus or bike routes. Hennepin and Dakota counties are expected to follow suit, and Washington County is on the fence. Carver County said no, and Scott County is expected to opt out as well. Only counties that support the new taxes will pay them and have a say in where the money goes. Moments after their vote, Ramsey County officials began distributing position papers underscoring that they believe the new money must "supplement and not supplant" the normal funding of the Met Council, which operates the region's poised-to-grow transit system. It was a response to Republican Gov. Tim Pawlenty, whose proposed budget seeks to address a $930 million projected shortfall by cutting the Met Council's budget. That budget is already shrinking because its dedicated funding stream â" motor vehicle sales taxes â" is sagging with the economy. Met Council Chairman Peter Bell, a Pawlenty appointee, has been telling lawmakers he suspects a resulting $47.5 million budget hole could force fare increases or â" worse â" service cuts, if cash from the new taxes isn't injected into the Met Council's coffers.
[[keywords: PublicWorks;PropertyTax;Ramsey;]]