Jasinski proposal for MnDOT could create savings  for cities and counties

John Jasinski

The Senate Transportation Committee on Feb. 18 heard MnDOT’s presentation on a major update to the state’s cost participation policy, which will significantly reduce the financial burden on cities and counties across Minnesota. The update is a bipartisan reform is the result of a bill Sen. John Jasinski authored that was included in the 2025 transportation budget.
The new policy caps local cost responsibility on state-initiated trunk highway projects using a brand-new ability-to-pay provision tied to local tax capacity, and includes draft language that would allow MnDOT to reimburse local governments for utility relocation costs. Multiple local government testifiers described these changes as “a game changer” that will save communities hundreds of thousands of dollars and make long-needed projects affordable.
“Testifiers from local government groups said it repeatedly, but it’s true that this is going to be a game changer for cities and counties across Minnesota,” Jasinski said. “It took a lot of hard work and a lot of discussion, but everyone seems rightfully thrilled about the new policy. It will make it much, much more financially feasible for small cities around the state to complete their urgent road projects. When you listen to folks from the cities and counties, you can feel their excitement. It’s going to save our residents a lot of money.”
Minnesota’s cost participation policy was first adopted in 1985 and last updated in 2016. Over time, cities and counties increasingly raised concerns that the formula placed too much financial burden on local taxpayers, especially for projects launched by the state. In some cases, local governments were required to contribute hundreds of thousands of dollars toward projects they did not initiate, and often had to front-load payments before reimbursement. Smaller communities, in particular, argued that the structure limited their ability to invest in their own local streets and infrastructure.
Local government groups from across Minnesota — including counties, cities, townships, and engineers — testified that the updated policy will significantly reduce financial burdens and, in many cases, make projects possible that would otherwise not move forward.