Resolution 22-06 MVST Amendment

WHEREAS, a well planned and well funded Minnesota transportation system is essential to the flow of goods and people throughout the state; and

WHEREAS, the state of Minnesota�s highway and transit needs continue to he under funded each year while construction costs continue to increase; and

WHEREAS, the Minnesota transportation system should be funded by a comprehensive plan that benefits the entire State-not a piecemeal approach; and

WHEREAS, the Motor Vehicle Sales Tax (MVST) constitutional amendment is not a solution to Minnesota�s transportation funding problems and will generate less than 18% of the state�s $1.7 billion in estimated yearly transportation needs; and

WHEREAS, the proposed constitutional amendment does not guarantee any funding for highways-only transit funding is guaranteed; and

WHEREAS, legislators already have the authority to use the sales tax on cars for transit or highways without a constitutional amendment and are more likely to pass a first-rate, comprehensive transportation funding plan if the MVST amendment is not adopted-legislators and the Governor should do their job; and

WHEREAS, the MVST constitutional amendment will leave a $300 million hole in the general fund which could result in a cutback in spending on education, health care and property tax relief and/or an increase in taxes; and

WHEREAS, state government has not proposed any revenue sources to fill the $300 million hole MVST would leave in the general fund; and

WHEREAS, the proposed constitutional amendment will mislead the voters into thinking 60% of the revenues are constitutionally guaranteed for highways-the voters should not be misled by the ballot language or the constitutional amendment;

NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MOUNTAIN IRON, MINNESOTA, that the City of Mountain Iron Opposes the Motor Vehicle Sales Tax constitutional amendment and urges the next legislature and Governor to do its job and pass a comprehensive transportation funding package.

DULY ADOPTED BY THE CITY COUNCIL THIS 5th DAY OF SEPTEMBER, 2006.