Dakota County and other metro counties would lose an estimated $93 million in sales tax revenue intended for local transportation projects in a surprise state budget proposal.
Those tax dollars — half of the total that counties expected to receive over the next two years — would be diverted to the Metropolitan Council for unspecified bus rapid transit (BRT) projects. The revenue comes from a regional sales tax that was part of a large transportation funding agreement reached in 2023.
“Taxpayers should be furious," Dakota County Board Chair Mike Slavik said. “This backroom deal violates the agreement we worked so hard for in 2023. This was never debated in public. This is a terrible process and precedent to shift taxpayer dollars."
State law outlines the percentage of regional sales tax revenue that must go to counties and how it can be spent. The new proposal dramatically changes that. As a result, the Met Council would receive millions of dollars it did not request publicly, all at the expense of the metro counties. The change would divert an estimated $192 million from counties to the Met Council over the next four years.
The proposal would take an estimated $14 million from Dakota County alone over the next two years — roughly $7 million a year. That revenue helps pay for dozens of transportation projects in nearly every city and many townships in Dakota County, including:
- Repaving highways in Apple Valley, Burnsville, Eagan, Farmington, Inver Grove Heights, Lakeville, and Hampton and Randolph townships.
- Increasing pedestrian and bike transportation throughout the county, including planned projects in Burnsville, Eagan and West St. Paul.
- Completing engineering work in Rosemount and Inver Grove Heights that is needed for future projects.
- Extending the county's greenway system, which provides safe, scenic routes for walkers, bicyclists and others.
The proposal was not heard in a public meeting during the legislative session and it was not included in either the House or Senate transportation budget bills. Those bills were reconciled by a legislative Transportation Working Group as part of overall state budget negotiations underway at the Capitol.
Not only would counties lose nearly $100 million, but the Met Council did not publicly request the change. Metro counties are unaware of any Met Council BRT projects set for construction that need more dollars, and the new proposal does not identify specific projects that would be funded. Plus, most of the Met Council's BRT plans do not involve suburban counties, including Dakota.
Dakota County commissioners, along with other metro county leaders, are urging state lawmakers to reject the transportation proposal.
“We have tried hard to work with legislators this session to help resolve a very challenging state budget," Slavik said. “Throughout the process, we've simply asked to be part of budget discussions that affect counties. Unfortunately for taxpayers, we were left out of this plan."