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B. Transportation Funding - Transportation funding for <br />non -interstate highways in the State of Minnesota in <br />recent years has become exceedingly scarce. Since the <br />beginning of the inter -state system Minnesota has <br />directed a substantial amount of its available State <br />funds into the Federal Highway Interstate programs <br />where it could get the best leverage for its money (the <br />split on Interstate funds is 90% Federal and 10% State <br />together with the fact than the appropriation is made <br />every 5 years and there is no State limitation on the <br />total. For Federally funded State highway, such as <br />Highway 12, the funding mechanism while the split is <br />77-231 between Federal and State does carry a $50 <br />million annual cap at present for all State trunk <br />highways. Therefore, because of this limitation the <br />State often may be required to fund 100% of the cost of <br />an improvement.) <br />As a result of the beat leveraging of funds the State <br />has been left in relatively good shape as it relates of <br />Interstate system, but the balance of its Federal trunk <br />system throughout the State, of which there in a total <br />of 12,000 miles, has not been maintained to a great a <br />degree. <br />C. Corridor Route Change) - Because of the <br />constitutional designation of the highway there are <br />certain requirements that relate to the highway serving <br />of certain Cities and Villages which does have an impact <br />on potential routings for the corridor. In addition <br />State law sets forth a process for any improvement or <br />upgrade requiring municipal approval and if disapproved <br />the process by which the Transporation Department has to <br />receive approval. In the case of Highway 12 such <br />limitations will impact the routing as there may be <br />objections to changes from both mun,r_ipali_ies and <br />3 <br />