Signs point to possibly more road improvement talks; Oscarson: State funding shortfalls may force sales tax discussions

Published 10:46 am Friday, August 28, 2015

In light of Freeborn and other surrounding counties approving half-cent sales taxes for roads and bridges, Mower County Coordinator Craig Oscarson said it may only be a matter of time until Mower County is forced to discuss the option.

While updating the county board Tuesday about statewide and regional trends, Oscarson brought up several counties have passed the half-cent sales tax. That puts Mower in a tough spot, according to Oscarson. While he’s seen an uptick in residents voicing concerns about road conditions, the state has failed to address road funding shortfalls.

Oscarson expects staff or the public to push discussions on the issue within the next year or so either at the board or committee level.

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“Nobody likes a tax increase, but nobody likes bad roads,” Oscarson said.

Mower commissioners haven’t stayed quiet about their displeasure since the Minnesota Legislature failed to address road funding in its session, even though it had a $2 billion surplus and transportation had been dubbed a top issues.

In 2013, the state approved a wheelage tax and a half-cent sales tax as options for counties to fund local road and bridge projects, which county officials have called a way for the state to pass off road funding to local government. Mower commissioners approved a $10 wheelage tax in June 2013, which is paid when drivers renew licenses and is estimated to bring in $357,000 a year. However, the board has been more hesitant to discuss the half-cent sales tax. Though the board hasn’t formally discussed the options, the topic has come up several times in discussions on road funding.

Oscarson has pointed out the half-cent sales tax is a double-edged sword. Traditionally much of the road funding money would come from the gas tax or other state revenue sources. A half-cent sales tax would essentially surpass funding shortfalls at the state, but county leaders fear it could send a message to the state that it can continue putting off the problem. Oscarson has urged the board to push the state to address transportation funding concerns, but he’s also noted other counties approving a half-cent sales tax may already be sending the state the message that it can push the issue off.

Freeborn County approved the half-cent sales tax on Aug. 18, and its board also voiced concerns about the issue being passed down.

“This is a state problem that is coming down to us,” said Ryan Nolander, Albert Lea Economic Development Agency executive director, of the deficit last month. “We are either going to have to have a large property tax increase or the sales tax to help fund our roads and bridges.”

Oscarson said Mower’s conditions could deteriorate compared to neighboring counties if funding sources aren’t secured.

“These roads are just crumbling,” Oscarson said.

Public Works Director Mike Hanson previously told the board that money would be used quickly if the county were to ever approve a half-cent sales tax. It would take about $15 million to replace 25 deficient county bridges and about $4.6 million to replace 34 deficient township bridges without even addressing roads, Hanson has said.

Oscarson and Hanson have both noted roads and bridges are vital for the county’s ag community.

“Our roads and bridges are instrumental to our economy,” Oscarson said.

Hanson told the board on township bridges on Aug. 11, telling them not to expect much funding from the state.

To read more about Mower’s road issues, go to www.austindailyherald.com/?p=647732