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Since the distribution of MSA funding to Minnesota cities is determined by the state Constitution, <br />nothing short of a Constitutional amendment to increase the share of Highway User Tax Distribution <br />Funds to cities will increase the cities' share of the total pool. The only means of generating additional <br />MSA revenues without amending the Constituion is to increase total HUTDF revenues. If the size of <br />the MSA system is to continue to increase (which it is likely to do given demographic trends) then a <br />reasonable response is to increase total MSA funding. <br /> <br />There are essentially just three options to increase revenues to the Highway User Tax Distribution <br />Fund. <br /> <br />o <br /> <br />Increase the gas tax from the 20 cents per gallon that was last increased 14 years ago in 1988. <br />Increase vehicle registration fees ("tab fees") that were reduced under Governor Ventura's <br />administration. <br />Provide other revenue growth to the Highway User Tax Distribution Fund. The most likely <br />candidate for increasing revenues to the fund would be by dedicating funds currently deposited <br />into the General Fund, i.e. the Motor Vehicle Sales Tax. <br /> <br />43 <br /> <br /> <br />