06Apr
A report from MPR this weekend profiled South St. Paul and how the city may be affected by LGA cuts. The city has exhausted several cost-saving measures to little avail, including laying off worker and consolidating the city’s fire department with West St. Paul’s. To deal with future cuts, the city may consolidate its police force and cut park and recreation programs. At the same time that LGA is being cut, the city anticipates lower property tax revenues as a result of the housing crisis. Although the governor has repeatedly said that cities carry excessive reserves that should be able to blunt the LGA cuts, South St. Paul’s reserve balance is already dangerously low; further reductions could affect the city’s bond rating.
The governor’s hometown is on thin ice, and if LGA is significantly cut, the cracks could spread. In tough economic times, LGA helps safeguard communities like South St. Paul from taking desperate measures—such as reducing public safety efforts or draining reserve funds—that ultimately may be irreversible or difficult to restore. To keep your city strong, contact your legislators and the governor, and tell them to protect LGA funding.
06Apr
The Star Tribune reported this weekend that north metro cities are struggling to manage their budgets as cuts to LGA loom. Preparing for the worst case scenario, cities have cut staff, delayed equipment purchases (which will cost taxpayers more in the future when these items increase in price), and forced staff—including public safety personnel—to take unpaid furloughs. Some cities have become so frustrated with the broken local-state fiscal relationship that they plan to prepare future budgets without accounting for state aid. In the end, this could drive up property taxes for local taxpayers in a time when they are already stretched to their limits.
Cities need LGA in order to keep communities strong, and this funding needs to be reliable. Over the past decade, LGA has seen significant cuts, and as a result, services have been cut and property taxes have increased dramatically. It’s time for the state to fulfill its promise to taxpayers—that no matter what corner of the state you live in, you have a right to needed services at an affordable price. Contact your legislators and the governor today, and tell them to adequately fund LGA.
02Apr
The City of Richfield may be unable to shield its residents from the negative impacts of LGA cuts for very much longer, according to an article today from the Star Tribune. Already, the city has implemented a street lighting fee, eliminated the city forester position (which will mean delayed removal of Dutch elm infested trees), laid off several city workers, and has kept unfilled positions vacant. Richfield’s city manager notes that these cost saving measures were not “budgetary fat”; all future reductions in LGA will cut into the bone of city services. Continue reading »
