The Coalition of Greater Minnesota Cities announced a bill this morning that would reduce the 2010 unallotment of LGA and MVC to their 2009 unallotment level, which would help communities avoid making deep cuts in essential services and protect property taxpayers from unaffordable tax increases. To learn more about this moderate approach bill, click here.
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26Feb
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15Jan
This week, State Auditor Rebecca Otto released her office’s annual report on city finances. The press release for the report can be found here and the full report can be found here.
The State Auditor’s key finding is that cities are responding to cuts in state funding programs, such as LGA, by relying more and more on property taxes. In fact, between 1999 and 2008, the report notes, revenues derived from property taxes have jumped 37% when adjusted for inflation.
But cities aren’t just increasing property taxes to combat reduced state aid and other economic factors such as declining property values. According to the State Auditor’s report, both city revenues and expenditures have decreased 7% between 1999 and 2008, when adjusted for inflation. This means that cities are spending less than they did 10 years ago, and as costs for items such as fuel, health care, and road maintenance balloon beyond inflation, a city’s dollar today doesn’t stretch as far as it did in 1999.
Moving forward into the 2010 legislative session, LGA and the viability of Minnesota’s communities will be a main topic of debate, to which the State Auditor offered the following caution:
The State is facing a large budget deficit. If the Legislature and Governor further cut local government aids, this will continue the trend of a greater reliance on property taxes,” Auditor Otto said. “I will meet with Legislative leaders to share this very important information for consideration in budget negotiations.
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08DecEvents, Firefighters, Jobs, News, Police, Property Taxes, Snowplowing, State Budget, Video No Comments
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.
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02Dec
From Thank LGA partner www.greatermncities.org:
Today’s budget forecast projects that the state is facing a $1.2 billion deficit for the current 2010-2011 biennium and a $5.4 billion deficit for the 2012-2013 biennium. Documentation on the budget forecast is available here.
To close the current biennium’s $1.2 billion budget gap, Governor Pawlenty noted in a press conference today that he would prefer to work with the legislature on the final solution. However, the governor also cited that because the December 2009 LGA payment is due in a matter a weeks, it will likely be impacted regardless of the legislature’s input. This means the December LGA payment could be reduced through unallotment, delayed, or a combination of both.
In response to this news, Wadena Mayor Wayne Wolden, CGMC spokesperson and former CGMC president, issued the following statement:
“It is outrageous that all signs are pointing to local communities being asked again to disproportionately bear the burden of balancing the state’s budget. Communities are repeatedly targeted for cuts, yet the state’s long-term structural budget problems persist. It’s time to pursue meaningful solutions that actually improve the stability of Minnesota’s financial future.
“This news couldn’t come at a worse time for Minnesota cities. The result of additional cuts to LGA-on top of the $150 million cut from last June-will mean that Minnesota families will see even higher property taxes and deeper cuts to public safety, libraries, parks, winter snow plowing.
“Minnesotans have had it with the lack of leadership at the Capitol. It is long time for the governor and legislature to show some backbone and work together to address the state’s financial situation.”
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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 »
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30Sep
Worthington City Administrator Craig Clark wrote a compelling letter published in the Daily Globe today that explains how the city plans to cope with LGA cuts:
The city has to make budgetary decisions for the long-run to ensure the continued financial health of the city. A short term contraction might make good headlines for one year, but we owe it to our residents to make solid fiscal considerations especially in light of the states substantial decline in partnership with local governments.
Read the full article here.
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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, 9/16/09The 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, 9/16/09Alexandria 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, 9/16/09Budget 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:
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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.