Politics

ST. PAUL (AP) ― Lawmakers sent Gov. Tim Pawlenty a bill Thursday that would sink $660 million more per year into Minnesota's transportation system, escalating a battle of wills expected to culminate in a veto override attempt as early as next week.

The Republican governor has promised to strike down the bill, which would raise the state gas tax for the first time in two decades.

Democratic backers made a last-minute change to attract extra Republican support, shaving down a metropolitan transit sales tax and winning over six House Republicans and two GOP senators. But with the "no" votes of two Democrats, the House vote was 89-44, short of the 90 votes needed to override Pawlenty.

"There's room for upward movement," said Majority Leader Tony Sertich, DFL-Chisholm.

Republican Rep. Jim Abeler of Anoka is among those being pressured to vote for an override. He said a Minnesota Chamber of Commerce-backed compromise was crucial to gaining his support during round one of voting, as was an e-mail from a boyhood friend who recently laid off 50 employees at his road materials business.

"The road ahead is a little unclear," Abeler said. "But I hope the governor who is concerned about taxes will look at what this provides."

The Senate voted 47-20 for the bill, a veto-proof margin deemed "rock solid" by Sen. Steve Murphy, the bill's Senate sponsor.

House and Senate leaders said they won't write another transportation bill if this one fails to become law. Murphy said the package was already downsized by nearly $2 billion to make it more palatable.

"What's there left to talk about?" said Murphy, DFL-Red Wing.

The bill pays for ramped-up road and bridge construction by raising the gasoline tax by a nickel a gallon this year. The quarter-per-gallon tax would climb another 3 1/2 cents in coming years to pay for borrowing that sponsors promised would be put to priority road projects and repairing ailing bridges. The cost of registering new vehicles would also rise, with the amount based on a car's purchase price.

The bill pays for Twin Cities-area rail and bus lines with a 0.25 percent addition to the sales tax in seven metropolitan counties. The other 80 counties could raise their sales tax by up to a half-cent, provided voters give their consent in a referendum.

The transportation finance issue has stymied the Legislature for more than a decade, causing the state's estimated yearly road needs to approach $2 billion. The issue took on new prominence after the Aug. 1 collapse of the Interstate 35W bridge.

Advocates believe they greatly improved the bill's chance of ultimate passage by cutting a new sales tax in the seven-county metropolitan area from a half-cent to a quarter-cent.

Rep. Frank Hornstein, DFL-Minneapolis, said reducing the sales tax was a major concession.

"We're doing this in the spirit of compromise, in the spirit of progress, in the spirit of moving our state forward," he said.

Not all Republicans were swayed.

"On the House floor, the word compromise means take a lot or take a little less than a lot," said Rep. Mark Buesgens, R-Jordan. "Sure doesn't sound like compromise to me."

Still, it was enough to swing an influential lobbying organization, the Minnesota Chamber of Commerce. In a letter to lawmakers, the chamber urged a "yes" vote on the changed bill and it said it would work to secure final passage.

Chamber president David Olson said in an interview that it was a "big stretch" for businesses to get behind the package of tax increases for transportation.

"Our members are tired of the legislative gridlock on this whole transportation bill," Olson said. "Year after year, it's all or nothing."

Since it was introduced on Feb. 12, the bill underwent a series of revisions that cut the total price tag by almost $2 billion over a decade.

In the Senate, Republican Julianne Ortman of Chanhassen said the bill's reliance on consumption taxes -- the gas tax and the sales tax -- is the wrong route to go. People at lower income rungs will feel the greatest pinch, she said.

"You're asking the poorest of the poor Minnesotans to subsidize transportation," she said. "You're asking them to pay more in gas tax and they can barely afford to get to work."

The bill provides a $25 tax credit for some Minnesotans as a way to mitigate the gas tax hike.

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