The Minnesota Department of Transportation is expected to be short $155 million of its original forecast for this year's estimated highway revenue. | Pixabay
The Minnesota Department of Transportation is expected to be short $155 million of its original forecast for this year's estimated highway revenue. | Pixabay
The Minnesota Department of Transportation (MnDOT) is expected to be short $155 million of its original forecast for this year's estimated highway revenue.
The losses can give thanks to COVID-19, but the losses aren't as large as expected.
Once the pandemic hit, 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 at an annual Transportation Alliance meeting that it was "a little less bad than forecasted."
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 lower, motor vehicle sales tax dropped by $29 million and other revenue sources lowered by $18 million. All of these figures are better than anticipated given the circumstances, Finance & Commerce reported.
Knatterud-Hubinger gave a reminder that unemployment remains at pre-pandemic levels and COVID-19 cases continue to increase.
MnDOT plans to reveal the budget forecast in early December which will assist in the budgeting processes in the 2021 legislative season.
Alerts Sign-up