Revenue allocation from the regional transportation sales tax for student transit and replacement services modification

SF 3523 modifies how regional transportation sales tax revenue is allocated in Minnesota. It sets aside 1.837% of this tax revenue specifically for the University of Minnesota Board of Regents to fund student transit services. The bill also creates a new funding category (subdivision 2a) requiring the Metropolitan Council to provide additional financial assistance to the Minnesota Valley Transit Authority for replacement services, on top of existing funding. These changes take effect July 1, 2025, and directly affect the University of Minnesota's student transit programs and the Minnesota Valley Transit Authority's service operations.