Browsing by Author "Stinson, Thomas"

Now showing 1 - 4 of 4
  • Thumbnail Image
    Item
    Local Road Funding History in Minnesota
    (Minnesota Department of Transportation, 2007-06) Ryan, Barry; Stinson, Thomas
    Between 1993 and 2003 per capita city and county spending for streets and roads in Minnesota increased by about 0.9 percent per year after adjusting for inflation. Local expenditures for the construction of new roads and the expansion of existing road increased by 17 percent during that period. But, local operating spending on roads, which includes expenditures for road maintenance, fell by 3 percent. Per capita county and city receipts from state highway aid declined 5 percent during that 10-year period on an inflation adjusted basis. Although the ratio of local government spending to personal income fell by 0.5 percentage points between 1993 and 2004, the proportion of Minnesota personal income going for local streets and roads fell by less than 0.1 percentage points.
  • Thumbnail Image
    Item
    Minnesota State Road Taxes in 2030: Will revenues keep pace with inflation?
    (2005-06-01) Ryan, Barry; Stinson, Thomas
    The future adequacy of Minnesota road funding is evaluated in a 27-year forecast of current law road taxes (motor vehicle registration tax, motor vehicle sales tax, and motor fuels excise tax). Revenue projections are compared with inflation-adjusted base costs in three economic growth scenarios (Trend, Optimistic, and Pessimistic), using two price deflators (core-CPI and state/local government costs). The Trend scenario predicts road tax revenues will lose purchasing power to inflation by 2020, but over the forecast period cumulative revenues and costs nearly balance out. According to this scenario, current tax policy can support 2003 service levels into the future, but not fund system improvements. The Optimistic scenario forecasts a surplus in purchasing power in all 27 years, providing the opportunity for significant new spending without changing current law. Under the Pessimistic scenario, tax revenues fall short of inflationary costs by 2012, with the annual loss in purchasing power reaching $1 billion by 2030. In this scenario, road tax policy changes are needed to avert significant declines in road service.
  • Thumbnail Image
    Item
    Paying for Minnesota Roads: A Tax Policy Assessment
    (2003-10-01) Ryan, Barry; Stinson, Thomas
    Minnesota state and local roads generate 52 billion vehicle miles of travel (VMT) annually at a cost of $2.6 billion. Spending averages 5 cents per VMT statewide, but travel on local government roads, especially low volume networks, costs more. State road aid reduces the local tax effort significantly in most high cost areas. State and local road funding is supported primarily with motor fuels excise taxes, vehicle registration and sales taxes, local property taxes, and state property tax relief. The average Minnesota household pays about $600 annually for roads, but this estimate varies widely with household characteristics. Substituting travel-dependent taxes for fixed or hidden charges could improve the tax system efficiency, and potentially distribute the road tax burden more fairly. Compared to current law, even radical tax reform may not change the road tax bill for some households. Thomas F. Stinson is an Associate Professor in the Department of Applied Economics at the University of Minnesota, St. Paul. Barry Ryan is a Research Fellow in the Department of Applied Economics at the University of Minnesota, St. Paul. Ple ase direct all comments or questions to Barry Ryan at phone number 612-625-7233, e-mail, ryanx020@umn.edu
  • Thumbnail Image
    Item
    Road Finance Alternatives: An Analysis of Metro Area Road Taxes
    (2002-03-01) Ryan, Barry; Stinson, Thomas
    The average Twin Cities household paid about $500 in state and local taxes for roads in 1996. The total tax burden for the region was nearly $1 billion, with two-thirds coming from revenues that are fixed or hidden from the traveler's perspective. Tax alternatives that favor use-related charges can send travelers a clear price signal, ultimately encouraging more efficient travel behavior. Tax policy might have an effect on housing location decisions at the rural-urban fringe, where farmland development premiums are still small. Road tax policy will need to change in order to keep pace with higher construction costs.