MnDOT adopts revised cost participation policy with new "ability-to-pay" cap MnDOT told the House Transportation Committee it adopted an updated cost participation policy and manual that adds an "ability to pay" provision capping a local agency's MnDOT-initiated project contributions at 0.8% of a community's five-year adjusted average net tax capacity; MnDOT estimated the change shifts roughly $20 million in prior local contributions to the state and said the policy takes effect for projects starting in FY2027.

Minnesota's new cost participation policy could save local governments up to $10,000 on MnDOT projects, shifting $20 million in costs to the state!

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