Minnesota Political Battle Holding Up $105 Million in FAST Act Funding

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David Paul Morris/Bloomberg News

A dispute between Minnesota Gov. Mark Dayton, a Democrat, and the state’s House Republican majority over who gets to dictate how funds are distributed, is hanging up $105 million in FAST Act dollars. This on the eve of Minnesota’s legislative elections in which the House could join the Senate in becoming controlled by the Democrats.

Dayton’s Department of Transportation wants to use the money for road and bridge work on Interstate 35 as well as several other freight routes in Minnesota such as U.S. 2, 14, 52, 59, 71 and 169 and Minnesota 11.

“The U.S. roadways … handle a lot of freight traffic, much of it interregionally,” MnDOT spokesman Kevin Gutknecht said. “[Minnesota] 11 is an important route that runs across the northern edge of the state from International Falls to the North Dakota border.”

Minnesota Rep. Tim Kelly, the retiring chairman of the Transportation Committee, objected in a letter to Department of Management and Budget Commissioner Myron Frans on Oct. 19, saying that the Legislature has to sign off on all funding even when the dollars are federal.



“This is unprecedented,” Kelly said in an exclusive interview with Transport Topics. “The department still has to go through a budgeting process that’s approved by the Legislature. The request was to spend the dollars we have coming [in the FAST Act] and put them in our budget without our blessing, basically.

"The process is the process for a reason. The [2017 legislative] session will start in January. Every legislator will have the opportunity to vote on [the projects]. That’s $105 million of taxpayer money. It shouldn’t be controversial.”

Kelly added that since nonemergency road construction has ceased in Minnesota until May, “The Department said it doesn’t need the money until 2017, anyway, because these projects are all for 2017.”

In his letter to Frans, Kelly wrote, “MnDOT leadership staff recently stated that these appropriations could be dealt with next session in conversations [with] at least two committee staff.”

In his Oct. 25 response to Kelly, Dayton wrote, “You have had ample opportunity to work with your colleagues … and send to my desk a significant transportation funding package that not only utilizes these federal dollars, but provides a long-term approach to fix our crumbling highway road and bridge infrastructure. … You are now compounding that failure with the misconceived notion that this … request is somehow precedent setting.  …

"MnDOT was clearly within its prerogative to request the use of these funds. In fact, they have already designated projects that will now undoubtedly be delayed based on your objection. What you are really doing is … telling communities throughout Minnesota that their local roads, bridges and safety improvements can wait.”

As for what happens next, Gutknecht said, “Rep. Kelly has the option of withdrawing the objection by Nov. 8. Until then, we won’t know the status of those projects. Anything else at this time would be speculation.” 

Kelly and his Senate counterpart, Scott Dibble, agreed on a $600 million transportation package before the 2016 session ended May 23, but they couldn’t bring their caucuses along and Dayton opted not to call a special session to try solve Minnesota’s 16-year, $20 billion funding shortfall.