MnDOT Updates Transportation Advancement Account Website and City Distribution Estimates

May 6, 2024

The agency has provided the fiscal year 2024 actual distribution and updated a fiscal year 2025 forecast distribution to the Larger Cities Assistance Account. For the Small Cities Assistance Account, the agency has provided distribution forecasts for both fiscal years.

On April 26, the Minnesota Department of Transportation (MnDOT) announced has updated the Transportation Advancement Account (TAA) webpage. The TAA is a new account established by the 2023 omnibus transportation bill, Chapter 68. It will provide ongoing funding for the Small Cities Assistance Program and the Larger Cities Assistance Account.

The Small Cities Assistance Program provides formula-based funding for roads in cities with populations below 5,000. The Larger Cities Assistance Account is a new program that will provide formula-based funding for cities with populations above 5,000. The funds provided by the TAA can be spent on any roads under the authority of the entity that receives the funds.

The agency has provided the fiscal year 2024 actual distribution and updated the fiscal year 2025 forecast distribution to the Larger Cities Assistance Account.

For the Small Cities Assistance Account, the agency has provided distribution forecasts for fiscal year 2024 and fiscal year 2025. Note these amounts may change if the Legislature provides one-time funding for the current fiscal year for the Small Cities Assistance Program. The League is supporting provisions in the House and Senate omnibus transportation bills that provide one-time funding.

Amounts in both accounts are expected to grow when the funding sources for the TAA are fully phased in. These sources include the retail delivery fee that will begin July 1, 2024, and a phase-in of the dedication of the sales tax on auto parts to the TAA.

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