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Bill Would Provide One-Time Funding for Small Cities Assistance Program
The proposed legislation would provide $25 million to be distributed this July to cities with populations below 5,000 for street maintenance, repairs, and reconstruction.
A League-supported bill, SF 4899/HF 4872, was laid over for inclusion in omnibus funding packages in the Senate Transportation Committee and the House Transportation Finance and Policy Committee. Authored by Sen. John Jasinski (R-Faribault) and Rep. Jeff Brand (DFL-St. Peter), the measure would help cities with populations below 5,000 pay for street maintenance, repairs, and reconstruction.
The measure is necessary due to a delay in new revenues that will flow to small cities from the Transportation Advancement Account (TAA) that was created in 2023. The effective date of the retail delivery fee combined with the relatively slow phase-in of the dedication of the auto parts sales tax, which fund the account, means there will not be meaningful TAA funds available until fiscal year 2026 (beginning July 1, 2025).
If enacted, the $25 million in funds would be distributed to small cities on a formula basis in July 2024. Omnibus transportation bills have not yet been assembled, but the League will advocate that Small Cities Assistance Program funds be included in the package in both the House and Senate.