Municipal State Aid
The State of Minnesota provides Municipal State Aid (MSA) funding to cities with populations of 5,000 or more for use in local State Aid street construction and maintenance. In accordance with state statutes, one-half of the annual funding is based on each city’s estimated construction needs, with the remaining half based on city population. The Minnesota Department of Transportation (MnDOT) administers the MSA program and determines official construction “Needs” for each city according to a complex set of formulas. In 2010, a decision to update MnDOT’s MSA software system presented an opportunity to review the underlying methods and assumptions used to estimate construction Needs, which were first developed over 50 years ago.
In May 2010, the Municipal Screening Board (MSB), which provides direction for the determination of street construction Needs, unanimously recommended the creation of a stakeholder committee to evaluate a new system to determine Needs for the MSA Cities. The Needs Study Task Force was formed in response to the MSB’s directive, with a representative from each MnDOT district and two cities of the first class. The MSB asked the Task Force to commit to a 2-3 year process and to present updates on their work at each fall and spring Screening Board Meeting.
As chair of the Needs Study Task Force, Lee will present a summary of the task force’s work and its recommendations.
Speaker Bio
Lee Gustafson has served as the Director of Engineering for the City of Minnetonka for the past 18 years. Prior to Minnetonka, he worked for the cities of Hopkins and Robbinsdale as their public works director and city engineer. He is currently president of the American Public Works Association – Minnesota Chapter, and is a past president of City Engineers Association of Minnesota. He graduated from the University of Minnesota with a degree in civil engineering. He is currently chair of the Municipal State Aid Needs Task Force.
