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Last week, Northstar Corridor Development Authority (NCDA) approved Minnesota Gov. Tim Pawlenty’s proposal to provide the Northstar Corridor commuter-rail project $88.3 million in state and $44.2 million in local funds.

The state and local funding commitment enables the authority to apply for matching federal funds.

In 2004, NCDA would receive $37.5 million from the state and local regional rail authorities; the authority would receive the balance in 2006. NCDA approved the proposal with the conditions that local commitments would not exceed one-third of the construction costs, and that the authority can develop alternatives to increasing local property taxes to pay its share of construction and operating costs.

The project’s first phase is a 40-mile segment between Minneapolis and Big Lake, Minn.

NCDA is comprised of 30 cities, townships and counties along the proposed Northstar Corridor. Each local authority now must decide whether to approve their local funding share.