• 19Apr

  Libraries, public land, pools, and community centers all on the chopping block

  City Stories, Community Pools, Jobs, LGA, Libraries, News, Senior Centers Leave a Comment

  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

  How are cities adjusting budgets now that LGA cuts are law?

  Firefighters, Jobs, LGA, Libraries, News, Police, Senior Centers, Snowplowing, State Budget Leave a Comment

  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

  Editorials weigh in on local pain of LGA cuts

  LGA, Libraries, News, Property Taxes Leave a Comment

  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 »

• 12Mar

  In Brainerd, personnel bear the brunt of LGA cuts

  Firefighters, Jobs, LGA, News Leave a Comment

  Staring down the governor’s proposed LGA cut of over $600,000 for 2010, the City of Brainerd is taking a tough look at what services and personnel the city can do without. The biggest cost savings in the city manager’s preliminary proposal is to cut six full-time firefighters in favor of transitioning the department from full-time to on-call. Continue reading »

• 26Feb

  Coalition proposes bill to protect essential services and property taxpayers

  Jobs, LGA, News, Property Taxes Leave a Comment

  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.

• 10Feb

  Updated City Stories

  City Stories Leave a Comment

  The Coalition of Greater Minnesota Cities recently surveyed its members to learn how LGA unallotments are impacting their 2010 budgets. To find the new city stories, click here, or simply click the “City Stories” link at the top of the page.

• 05Feb

  Bemidji mayor responds to governor’s ‘drive-by rant’ on LGA

  City Stories, News Leave a Comment

  Bemidji Mayor Richard Lehmann responded to comments Governor Tim Pawlenty made last week on his radio show about the city and its LGA funding. To read the full column, click here. Here’s just a taste:

  In Bemidji, we’re proud of the way we have planned for hard times like these. But make no mistake: Cuts to LGA mean cuts to essential city services and increases in property taxes. Bemidji now joins the growing legion of rural cities “featured” on the governor’s radio show — a list that includes Albert Lea, Wadena and Mankato, among others — that he apparently feels he can run better than the local residents do.

  Rather than dispense his budgeting critiques from an isolated recording studio in St. Paul, I invite Gov. Pawlenty to sit down with me and my statewide counterparts to have a constructive conversation on the future he envisions for greater Minnesota. Dialogue is a two-way street, and when the governor is ready to learn about the consequences of his policy decisions, the city of Bemidji will be here.

• 15Jan

  State Auditor finds that reliance on property taxes grows when LGA cut

  News, Property Taxes, State Budget Leave a Comment

  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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