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Dayton makes two offers on transportation funding

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Updated at 1:20 p.m. with comments from Dayton and Daudt

Gov. Mark Dayton released two funding proposals Monday to try to break an impasse with House Republicans over a transportation bill.

With the 2016 session in its final week, Dayton asked state lawmakers to consider two alternatives for compromise. One proposal includes a 5 cent per gallon gas tax increase. The other does not.

Both plans would increase license tab fees and use existing general fund revenues.

Both plans would raise the sales tax in the metro area by half a cent to fund mass transit.

Both proposals would generate $600 million per year for roads and bridges.

Dayton said legislators need to accept things they don’t agree with in order to reach a compromise and pass a transportation bill this session.

“Inaction is really a failure on behalf of Minnesota, because it means if nothing is done conditions will continue to get worse,” Dayton said. “I don’t believe that’s something anybody can justify to the people of this state.”

House Republicans have said they won’t accept any plan that includes a gas tax increase.

House Speaker Kurt Daudt, R-Zimmerman, said he was pleased to see the governor use general fund money and leave out the gas tax in one proposal. But Daudt criticized Dayton’s proposed tab fee increase as a different kind of tax increase.

“I think we might be willing to discuss a small amount, but it’s tough to say you’re going to double the amount that people are paying for their license tabs and not feel like there’s going to be some pushback from the public,” Daudt said.

Still, Daudt said he thinks a deal can be reached this week.

Dayton presented the offer to GOP and DFL legislative leaders during a closed door meeting Monday morning.

Here's a summary off the two offers released by the governor's office.