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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.

  • 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 »

  • 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.”

  • 28Apr

    Alexandria Mayor H. Dan Ness and Moorhead Mayor Mark Voxland collaborated on an op-ed piece featured in today’s Alexandria Echo Press. The city leaders point to the upcoming governor’s race as pivotal in defining the future of LGA:

    As the election season looms, we are calling on all Minnesotans—Democrats, Republicans and Independents—to meet the candidates, ask them what their plans are for LGA, and how they intend to keep property taxes low and fund police, fire, streets and core services.

    The next four years will be a critical time for rural communities across the state. It very well might be the season that determines our fate. We hope that Minnesotans ask questions and demand answers from the candidates as this important decision nears.

    Read the full op-ed here.

  • 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 »

  • 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.

  • 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.

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