The Minnesota Department of Transportation is projected to take a $155 million hit in projected highway revenue. | Pixabay
The Minnesota Department of Transportation is projected to take a $155 million hit in projected highway revenue. | Pixabay
A $155 million loss was discovered compared to the Minnesota Department of Transportation's (MnDOT) original forecast for this year's estimated highway revenue.
Luckily, the losses were expected to be much worse.
Once COVID-19 surfaced in the United States, MnDOT edited its forecast for the 2020-2021 fiscal year in May. The revision revealed that there would be a 20% reduction or $300 million for the Highway User Tax Distribution Fund.
MnDot Budget Director Josh Knatterud-Hubinger said that this was "a little less bad than forecasted" at an annual Transportation Alliance meeting, Finance & Commerce reported.
A 10% or $155 million hit occurred from April to October.
Gas taxes were $75 million short of projected revenue, tab fees were $33 million or 7% lower, motor vehicle sales tax dropped by $29 million or 9%, and other revenue sources lowered by $18 million or 14%. All figures were better than anticipated.
Knatterud-Hubinger reminded everyone that unemployment remains at pre-pandemic levels and COVID-19 cases continue to increase.
MnDOT intends to release the budget forecast in early December which will assist in the budgeting processes in the 2021 legislative season.
Alerts Sign-up