Funding Surface Transportation in Minnesota
Funding Surface Transportation in Minnesota

Author: Zhirong Zhao

Publisher:

Published: 2010

Total Pages: 80

ISBN-13:

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Transportation systems play an imperative role in enhancing the productivity and the quality of life in the United States. The funding and financing of transportation is a complex process requiring joint efforts of federal, state, and local governments. To meet current and future transportation needs, policymakers must constantly assess the mechanism of transportation finance to ensure adequate and sustainable investment. In recent years, depleting state and local budgets and growing capital and maintenance costs related to transportation have been a common challenge. The state of Minnesota is estimated to have billions in unmet transportation needs to keep up with inflation and the increase in transportation demands. This report reviews the funding of public surface transportation systems (including highways, transit and local roads) in Minnesota. We look at how transportation projects have been funded, identify current and future policy issues likely to affect transportation funding, and go over some of the funding options suggested by other researchers. The aim is to encourage better understanding and management of issues related to transportation funding in Minnesota.

Transportation Investment and Job Creation in Minnesota Counties
Transportation Investment and Job Creation in Minnesota Counties

Author: Zhirong Jerry Zhao

Publisher:

Published: 2018

Total Pages: 33

ISBN-13:

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Numerous studies have been conducted about the impact of transportation investment on economic development. These studies typically use a conventional production function model of economic development augmented by a public capital input, such as highways, rail, or other transportation investments. The findings, in general, confirm a positive elasticity between transportation investment and economic development, but the range of the effects varies widely among studies. In a recent research project, Zhao (2015) quantifies long-term transportation capital stocks in Minnesota counties and finds that these stocks have positive returns on property values. This study extends Zhao (2015)’s methodology to study the link between transportation investment and job creation. We find that long-term transportation investments contribute significantly to employment in Minnesota counties. The results have several policy implications. First, investments on local roads within a county can increase the employment rate in the county. Second, investments on trunk highway surrounding a county can increase the employment rate in the county. Lastly, in the context of Minnesota, it could be more effective to invest in rural areas compared to urban areas, as far as employment growth in concerned.