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  • 06May

    Mayors from St. Paul, Minneapolis and greater Minnesota gathered at the Capitol today to deliver the follow message regarding the governor’s latest plan to cut LGA:

    St. Paul, Minn.—Devastating, disproportionate and irresponsible. That’s how Minnesota city leaders characterized Governor Tim Pawlenty’s latest round of proposed cuts to local government aid (LGA). Mayors from across the state met in St. Paul today to reject the governor’s recently announced budget plan and call on lawmakers to clean up the state’s budget mess before asking cities to do the dirty work.

    “Cities have made the tough choices,” St. Paul Mayor Chris Coleman said.  “We have done more with less, found new efficiencies, made painful cuts and even raised property taxes.  It’s time for leaders at the Capitol to make some tough decisions and come together to solve the state’s long term deficit without shifting the burden to our cities.” 

    The stakes are high, and the decisions made in St. Paul over the next few weeks will be felt across Minnesota for a generation, Coleman stated. 

    “We are here today to deliver a message that our cities, big and small, are going to stand and speak with one voice to ensure that we have the resources we need to keep our economy growing, keep our cities safe and to keep Minnesota strong.” 

    Since 2002, LGA has been reduced by over $1 billion and property taxes have increased over 60 percent statewide. In the last three years, the governor reduced the program by another $200 million via his unallotment power. Combining the governor’s 2010 unallotment and latest proposed reduction of at least $87.5 million with a $52.5 million cut passed by the legislature this session, city aids and credits face a 43 percent cut for 2010.

    “Our communities can’t sustain this magnitude of cut, our communities are at stake” said Cloquet Mayor Bruce Ahlgren. “It will simply be devastating to our residents and small businesses. In our city, it’s come to the point where police and emergency services are on the chopping block. Communities—especially those in greater Minnesota—are facing a tough road to economic recovery having lost such a significant source of funding.”

    Governor Pawlenty’s plan attempts to close a budget hole of over $400 million that will remain open unless anticipated federal money reaches the state before the legislature adjourns May 17. City officials agreed that it was wise to have a contingency plan in place should these funds be delayed, but stressed that the governor’s plan simply shifts the burden of budget-balancing to the local level.

    “Tough times require tough choices—the state has failed to make them, while cities and communities have. We have structurally balanced our own budgets and reformed the way we do business while staying focused on the basics of keeping people safe, creating good jobs and creating good futures for kids,” said Minneapolis Mayor R.T. Rybak.

    “Strong communities where businesses want to create jobs and families want to raise their kids are what will pull our economy out of its downturn. Minnesotans have a right to expect that legislators and the governor will stop using their cities and communities as a short-term fix and will finally come together to solve the state’s long-term budget crisis once and for all.”

  • 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 »

  • 08Dec

    St. Paul Mayor Chris Coleman and Wadena Mayor Wayne Wolden, spokesperson for the Coalition of Greater Minnesota Cities, released the following statement in response to Governor Pawlenty’s decision to spare LGA from December unallotment:

    We applaud and thank Governor Pawlenty for recognizing that Minnesota cities have hit the financial edge and additional cuts would jeopardize public safety and do further harm to our fledgling economy.

    Over the past year we have done everything we can to speak out for cities across the state to show how critical services like police, fire, snowplowing, libraries and property taxes have been affected by continued cuts to local government aid.

    Over the past seven years Minnesota cities have lost $754 million in LGA and the consequences have been profound-a 64% increase in property taxes and significant cuts to core services like police, fire, snow plowing and libraries.

    As a major winter storm is bearing down on us, the critical role our cities play in the lives of our citizens is no more apparent than today.  Across the state, cities are battling the storm by plowing streets, dropping salt and doing everything we can to protect the safety of Minnesota families.   All of us know that this comes at a cost.

    We look forward to working with the governor and the legislature in the upcoming session to ensure our cities will continue to be protected.

  • 16Nov

    The Park Rapids Enterprise reports that the city councils in Akeley and Nevis recently decided to reduce their public safety services. In Akeley, the police chief’s hours will be cut down to 20 hours per week, and all part-time officers will be eliminated, resulting in a $40,000 savings. In Nevis, the city council voted to disband the police department, which was staffed by a single constable. This reduction amounts to an $18,000 savings for the city.  The city will contract with the county to provide future public safety.

    Cities across the state are making difficult budget choices as a result of steep state aid cuts. As the mayor of Akeley noted, the city can only afford to fund the most “serious necessities,” such as water, sewers, and roads. Cutting down to the bone has serious ramifications for the viability of greater Minnesota. Strong, affordable services are imperative to attracting new businesses, jobs, and families to greater Minnesota communities, and right now, cities can’t afford to invest in these services. The state must recommit to the LGA program in order to ensure the future economic health of our communities.

  • 30Sep

    St.Paul, MN—Saying that the next governor will determine the fate of cities across the state, mayors announced at a State Capitol press conference that they are turning their attention to the 2010 governor’s race and will be traveling the state to call on candidates to address local government aid (LGA).

    “Minnesotans have had it. We are standing here today because our citizens are demanding answers. Our citizens are bearing the brunt of year after year of property tax increases and cuts to local police, fire, libraries, community pools, street maintenance and snow plowing,” said Wadena Mayor Wayne Wolden, who is also a spokesperson with the Coalition of Greater Minnesota Cities-an organization of nearly 80 outstate cities that is organizing the effort.

    “If you are running for governor, Minnesotans want to know where you stand: will you uphold the state’s commitment to strong, affordable cities, or will you continue to allow property taxes to skyrocket across the state?” Wolden asked. Continue reading »

  • 16Sep

    City councils across the state continue to discuss ways to account for significant losses in LGA, and many are finding that the outcome will mean deep cuts to the services that keep our communities safe and strong and increases in property taxes. Cuts to LGA mean pay more, get less.

    Faribault:
    City seeks $500,000 in cuts, Faribault Daily News, 9/16/09

    The Faribault City Council recently set its preliminary 2010 levy with a maximum 9.95% tax increase. The City Council hopes to drop that figure to 6% by making an additional $500,000 in spending cuts. As City Administrator Tim Madigan commented, ”When you cut down to the basics, you start eliminating not only bodies, but services.” The City of Faribault has lost $845,000 through Governor Pawlenty’s unallotment.

    Alexandria:
    City budget set, Alexandria Echo Press, 9/16/09

    Alexandria Mayor Dan Ness sums up what cities across the state are experiencing as they set their 2010 budgets: “It’s not a spending problem, it’s a revenue problem.” Alexandria lost $226,358 in the final two weeks of 2008 and $206,691 in 2009 through the unallotment of state aid, and stands to lose an additional $476,915 in 2010.

    Minneapolis:
    More Mpls Budget Cuts, More Firefighter Layoffs, Fox 9 News, 9/15/09
    Minneapolis Police Department shuts down narcotics unit, Star Tribune, 9/16/09

    Budget cuts in Minneapolis could lead to the loss of 27 firefighters, potentially resulting in decreased response times and increased health risks to firefighters. Minneapolis has also shut down its narcotics unit in response to budget cuts, making Minneapolis the only major city in the U.S. to not have a dedicated unit to narcotics enforcement.

    Watch the full report from Fox 9 below:

  • 10Sep

    The Albert Lea Tribune is reporting today that the City of Albert Lea did not receive two key grants that would have helped it maintain its full police force. As a result, the police department is $160,000 short in its budget, which already took a $320,000 hit (made up through the attrition of 3.5 positions) earlier in the year. To close the new gap, the city may have to layoff personnel in the police department or make deeper cuts in other departments. Through Governor Pawlenty’s LGA unallotment, Albert Lea lost $400,000 in the last two weeks of its 2008 budget year and is scheduled to lose more than $1 million in 2009 and 2010.

  • 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.

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