Road work on Highway 210 in Fergus Falls, May 2026. (Derek Sidian, KBRF News)
St. Paul, MN – Minnesota cities, counties, and townships will soon pay less for state road construction projects under a new cost-sharing policy from MnDOT.
Agency officials say the updated formula will save local governments about $20 million annually by basing their contribution on tax capacity rather than a one-size-fits-all approach.
MnDOT Planning Director Philip Schaffner says some small communities were previously asked to contribute hundreds of thousands of dollars, sometimes more than half their annual budget.
The new policy takes effect July 1st and has the support of both the League of Minnesota Cities and the Association of Minnesota Counties.
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