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Post Archives

  • 03Jun

    In the past week, editorial boards from greater Minnesota newspapers have been weighing in on state actions that have significantly reduced their communities’ state funding dollars. Programs like LGA and Market Value Credit (MVC) help alleviate property tax disparities that exist between rural Minnesota and wealthier communities, which in turn strengthens the economic viability of the state as a whole. These programs also help communities provide essential services like police, fire protection, libraries, parks, and safe roads while keeping property taxes affordable. With the state having cut LGA by over $1 billion since 2002, communities that receive LGA are sacrificing quality-of-life services and asking property taxpayers to pay more for less, causing editorial writers to question the direction in which lawmakers are taking greater Minnesota.

    The Mankato Free Press is concerned that LGA cuts will negatively impact the business climate in rural Minnesota, which is dependent on affordable property tax rates in order to attract and retain small businesses. Continue reading »

  • 21May

    The Star Tribune Editorial Board weighed in today on the results of deep cuts to LGA that Minnesota lawmakers have made over the past years. Across the state, the editorial says, cities are cutting essential public safety and quality-of-life services such as library hours, parks, and safe roads.

    Reductions in city services have become so commonplace in Minnesota that they barely attract local mention, let alone notice at the State Capitol. State aid cuts and freezes since 2003 and declining property values since 2008 have wrung things deemed easily expendable out of the budgets of cities all across the map.

    But after the 2010 Legislature’s latest $66 million cut and its affirmation of Gov. Tim Pawlenty’s $150 million unallotment of state aid to cities, decisions are being made in Minnesota’s city halls that ought to get state lawmakers’ attention. The services that city leaders typically protect when budgets get tight—police and fire—are on the chopping block now.

    Read the full editorial here.

  • 19Apr

    News reports from across the state are echoing the same theme: cities continue to make difficult decisions as they budget with fewer LGA dollars. In many cases, these decisions will have a lasting impact on the strength and affordability of Minnesota’s communities. Below are just a few snapshots of what LGA cuts look like.

    According to the Pioneer Press, metro area libraries are feeling the sting of state aid cuts. Because most libraries are funded through city revenue streams, the loss of LGA over the past decade has dried up library resources. While most libraries across the state have reduced hours, book-buying budgets, and employee costs, some small metro libraries may consolidate with those in nearby larger cities or are already shrinking in size to accommodate sharing space with other city programs, such as recreation centers. These service reductions come during a time when many libraries are reporting their largest usership rates. Continue reading »

  • 09Apr

    With Governor Pawlenty signing the legislature’s supplemental budget bill into law last week, cities across the state are engaging in budget cutting discussions now that they have a clearer sense of their state aid reductions. Under the bill, LGA  and the Market Value Homestead Credit will be cut by $52.5 million in 2010 and $56.5 million in 2011. This is a vast improvement on the governor’s original budget proposal, which would have cut these programs by $125 million in 2010 and $252 million in 2011.

    It’s difficult to imagine the consequences of the governor’s proposal on Minnesota’s communities considering that the legislature’s smaller cuts will still have a significant impact on essential city services and the affordability of being a city resident. Years of repeated cuts to LGA have left cities with few budget-cutting options to choose from—reserves are drained, hiring freezes are in place, capital equipment and improvements have been delayed. Below are just a few examples gathered since the budget bill signing of how cities are adjusting their 2010 budgets in the wake of these most recent cuts. Continue reading »

  • 16Mar

    Proposed cuts to library services spurred editorial writers from the Ely Timberjay and Mankato Free Press to offer their thoughts on the future of essential services in their cities in light of possible LGA reductions. For Ely, the library’s share of the governor’s proposed LGA cuts would mean a severe drop in services: Continue reading »

  • 09Sep

    The proposed cuts range from reductions in overtime and temporary employee hours to elimination of school crossing guards to wholesale cutbacks in street seal coating.The latest update in our “It’s hitting home” series looks at budget challenges facing Glencoe, East Grand Forks, Winona, Mankato, and North Mankato. These cities are grappling with difficult choices to raise property taxes or cut services as a result of cuts to LGA.

    Glencoe:
    Council facing tough decisions on budget; cuts vs. new funding, McLeod County Chronicle (9/9/09)

    The Glencoe City Council is considering a plan to raise property taxes by 3%. This plan would also involve cuts to road maintenance, cuts to the city’s trail system and campgrounds, potentially delaying the purchase of a new fire truck, and delaying the replacement of two police officers and a street department position. The city may also have to implement new fees.

    East Grand Forks:
    EGF: 2010 budget ‘will be cut’, Grand Forks Herald (9/9/09)

    The East Grand Forks City Council set a preliminary property tax increase at a 12.8%, but plans to work this down to a more acceptable figure through tough budget cuts.

    Winona:
    City council considers staff cuts, tax increase, Winona Daily News (9/9/09)

    The Winona City Council approved a plan to cut 12 city positions, including the library director and a liaison officer who works in the public schools, and raise the property tax levy 5%.

    Mankato:
    Mankato eyes 4-5 percent levy hike, Mankato Free Press (9/9/09)

    During a work session, the Mankato City Council discussed raising property taxes by 4% to 5%. Along with budget cuts already in the 2010 plan, the council and city manager discussed freezing their salaries for 2010, cutting the parks maintenance budget, and making other minor staffing changes.

    North Mankato:
    North Mankato approves cuts, Mankato Free Press (9/9/09)

    North Mankato’s 2010 preliminary budget includes $220,000 worth of service cuts. According to the report, “the proposed cuts range from reductions in overtime and temporary employee hours to elimination of school crossing guards to wholesale cutbacks in street seal coating.” The proposed budget would also require a 3% property tax increase.

  • 02Sep

    Even though library usership is spiking across the country as a result of the recession, book-buying budgets, library hours, and staff numbers are taking a hit. That’s the case in Austin and Albert Lea, according to the Albert Lea Tribune. Both cities are facing budgetary challenges as a result of cut LGA.

    Libraries deal with budget reductions, Albert Lea Tribune, 9/2/09

    In Austin, ”a librarian position open as the result of a retirement is not expected to be filled until 2011, and the city’s preliminary budget for the library in 2010 is slightly smaller than the original 2009 budget…’We’re a full staff person short,’ [librarian Ann] Hokanson said. ‘It’s been a very stressful summer.’” 

    In Albert Lea, “Library Director Peggy Havener said the library has proposed cutting open hours from 55 to 44 during the week, which could mean two less days of operation.

    In addition, the Albert Lea Public Library is planning on cutting three part-time employees, while reducing the hours for two more part-time staffers.

    While the cuts still need city council approval, Havener said they are likely to go forward and speak toward the dire situation facing the library.

    ‘It’s the only way we really had to go,’ she said. ‘It’s not something we want to do.’”

  • 11Aug

    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.

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