The Mankato Free Press editorial board recently provided some insightful commentary on area city and county budget challenges that are resulting from Governor Pawlenty’s state aid unallotments. But more importantly, the Free Press hits the nail on the head when it comes to the ”big picture” impacts of these cuts: small-town Minnesota  may become a less viable place to live and do business. Thank LGA encourages you to read the full editorial here.

The governor’s direction appears to be toward breaking off state and local government partnerships and letting lots of small communities more or less fend for themselves.

That would create an entirely different outstate Minnesota, an entirely different small-town Minnesota. There is likely to develop, under this scenario, a mishmash of fees and costs uneven across cities in Minnesota. It will create a tax and fee structure that will be less understandable, and less accountable for businesses and residents. (Mankato Free Press, 8/29/09)

In the latest update to our “It’s Hitting Home” series, city and county officials in the Mankato area discuss the “perfect storm” that will hit local property taxpayers as a result of state aid cuts.

Mankato:
2010 budgets worrisome, Mankato Free Press (8/28/09)

State aid is slashed. Property values are dwindling. According to Blue Earth County Administrator Dennis McCoy, that combination creates “the perfect storm.” Even though spending is staying essentially flat in the area, home and business owners will see an increase in their property taxes just so that cities and counties can provide an adequate level of services.

As a matter of scale, it’s not often that Minnesota and California are grouped together when discussing state budget woes. So what do the two have in common? Massive cuts in aid to local governments that are resulting in layoffs, cuts in essential city services, and increased property taxes.

According to a piece from Stateline.org, residents in Minnesota and other states that raided local government aid programs face challenging times in the upcoming years. Local-state relationships have been severely damaged, and the burden of funding critical services and raising revenues has been shifted downward to local governments.

Inevitably, these costs are shifted to those who have already been repeatedly stung by the recession: home and business owners. When aid to local governments is cut, property taxes go up and services that make our communities attractive places to live and work suffer. And it’s not just in Minnesota, either; the same is happening for residents in California, Pennsylvania, and Massachusetts, as Stateline.org cites.

That’s why the 2010 state elections are so important. Minnesotans need a governor and legislature that believe in strong, affordable communities and will advocate for proven property tax relief programs, such as LGA.  When candidates come to your city, ask them if they support LGA. Without their commitment, home and business owners are going to be left with a ballooning tab, and communities across the state will be less safe and less livable.

As city councils across the state begin their 2010 budgeting discussions, cuts to LGA will force tough decisions, and residents will be confronted with reduced services and increased property taxes.

Over the next few months, Thank LGA will be bringing these city stories directly to you through our It’s Hitting Home series. The common connection between these stories is clear: cutting LGA results in cuts to essential services and increases in property taxes. LGA is what keeps Minnesota communities strong, and it needs to be protected in 2010.

St. Paul
Tax increases, spending cuts proposed for 2010 St. Paul budget, Pioneer Press, 8/11/09

To address a steep cut in state aid, Mayor Chris Coleman has proposed increasing the city’s levy by 6% and the public works right-of-way assessment by 6.8%. The city may also have to lay off as many as 45 people next year, which will negatively impact the various services they provide.

Bemidji
Budget crunch hits city; City Council votes 4-3 to cut one position, Bemidji Pioneer, 8/11/09

In a contentious decision, the Bemidji City Council voted to eliminate the city’s community development director position. This position performed such tasks as grant-writing, managing the city’s economic development programs, and maintaining communications with the Greater Bemidji Area Joint Planning office.

North Mankato
North Mankato weighing budget options, Mankato Free Press, 8/11/09

The City of North Mankato expresses its frustrations with what appears to be an impossible situation: a nearly $500,000 budget hole from lost LGA and few favorable solutions.