As election day nears, local media are taking a closer look at the gubernatorial candidates’ positions on LGA. Candidates Dayton, Emmer and Horner all have very distinct views on the purpose of the LGA program, its funding formula and how much money the program needs in order to effectively provide property tax relief. Thank LGA encourages you to learn more about these viewpoints by reading the articles below:
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29Oct
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27OctCommunity Pools, Jobs, LGA, Libraries, News, Parks & Recreation, Police, Property Taxes, Street Maintenance Leave a Comment
As its population ages and state aid continues to shrink, rural Minnesota may struggle to sustain essential city services for residents, according to a MinnPost report. In the City of Wheaton, a small town of nearly 1,500 along the western edge of the state, deep state aid cuts have had a very real impact on the city’s lean budget:
…[H]ere’s what it has meant for a city that was expecting about $700,000 in Local Government Aid but lost about 12 percent of it: Wheaton didn’t fill a public works supervisor position; it transferred the utility billing clerk off the city payroll; the city administrator must take unpaid leave every Friday afternoon and a week furlough annually; street repaving has been delayed or abandoned; library hours were cut; some upgrades to city facilities to abide by the Americans With Disabilities Act were delayed.
In addition to service cuts, the city has raised its levy by 19 percent since 2007. Struggling to maintain an adequate level of services at an affordable price to its residents, the City of Wheaton is finding itself in a situation that many small cities across the state know well: in order for the city to thrive again, it must increase its tax base by attracting young families and new businesses. However, without sufficient funding, the city cannot invest in the infrastructure and quality-of-life services that new residents and businesses demand. Continue reading »
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14SepCity Stories, Community Pools, Firefighters, Jobs, LGA, Libraries, News, Parks & Recreation, Police, Property Taxes, Senior Centers, Snowplowing, State Budget, Street Maintenance Leave a Comment
Raising property taxes, laying off employees, cutting services, increasing fees and consolidating services with neighboring cities. These are all tactics that greater Minnesota cities are exploring as they weather a financial crisis caused by factors such as declining state aid, aging populations and decreasing property values. Minnesota Public Radio’s Ground Level blog is currently examining the issues facing cities as they piece together their budgets for 2011 and reports that after years of budget cuts, cities have few easy options to pursue. This is a must-read series that anyone interested in the future stability of cities should read. Below are selected entries of particular interest:
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28Jun
On June 17, a tornado ripped through sections of Wadena, Ottertail and Polk counties in northwestern Minnesota and caused significant damage in the city of Wadena. Over twenty homes were declared total losses and both the Wadena-Deer Creek high school and the city’s community center were damaged beyond repair. In an interview with Star Tribune columnist Lori Sturdevant, Wadena Mayor Wayne Wolden credits the LGA program with ensuring that emergency services in both his community and neighboring communities were at-the-ready to respond to residents in need:
“Wadena is a poor community,” the mayor explained. Its 2008 median household income was $35,569, less than two-thirds the statewide median. “But for LGA, we couldn’t afford all the services you see here.”
He elaborated: It made a huge difference that dark Thursday afternoon that Wadena had adequate storm sirens. That it had trained professional police, fire and county sheriff personnel on the scene. That it had an emergency action plan drilled into first responders’ minds. That its neighboring communities had similar state-funded assets and could swing into action.
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03Jun2010 Election, Firefighters, Jobs, LGA, Libraries, News, Police, Property Taxes, Snowplowing, State Budget Leave a Comment
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 »
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21MayFirefighters, Jobs, LGA, Libraries, News, Police, Property Taxes, Snowplowing, State Budget Leave a Comment
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.
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13May
According to the Crookston Daily Times, the City of Crookston may have few options left when it comes to accounting for LGA cuts. Having made reductions across various departments and delayed capital improvements, the city may need to reduce staff, including two police officer positions. From the report:
“No one wanted to cut two police officers and save $115,000, but with talk like we’re hearing tonight, that’s probably moving up the ladder,” said committee chair Marlys Mjoen, from ward two…Capital expenditures have been minimal at best as a moratorium has been in place for more than a year. But Ward Four Council Member Wayne Melbye said holding the line on capital improvements will only help the bottom line so much. “Sooner or later it’s going to be positions,” he said. Continue reading »
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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.”