Pawlenty: LGA not a lock
Published 12:00 am Friday, December 13, 2002
The amount of local government aid cities receive may depend on the level of "neediness," Gov.-elect Tim Pawlenty said in his visit to Austin Thursday.
"First we need to find a definition of what needy is." Pawlenty said.
In determining the core criteria of Pawlenty said, "It's going to be the ability to provide services on local level. In other words how much local tax capacity do you have? Social and regional demand markets that cause over-burden is something that we would definitely look at."
The original point of the program, Pawlenty explained, is to help communities that could not fairly raise enough revenue by themselves with local taxes.
"If the state government is going to be tightening its belt, we expect the local government to do the same," Pawlenty said.
Currently, the LGA received from the state amounts to 66 percent of Austin's general fund.
With enrollment numbers, the younger population is declining in outer Minnesota and the budget deficit, public education is also at risk for cuts.
Lack of economic opportunity affects the local education, Pawlenty said.
Sending more aid out to local governments is helpful, but in the long run Pawlenty said he thinks bringing in more business is the key.
The funding for K-12 education in recent years has been so significant that it has triggered a crisis Pawlenty. Funding formulas used distribute the money unevenly and unfairly, he said.
"We need more equalized formulas. We'll try to hold K-12 education harmless. But we keep having the cost of a running a school going up 10, 15 percent every biennium. The first we can do is not make it worse," Pawlenty said.
Pawlenty also addressed the loss of jobs in the manufacturing business. Minnesota has lost more than 35,000 manufacturing jobs in the past four years, or about 80 percent in the last decade. Manufacturing jobs are essential because they help fill the gap between jobs in the high-tech and retail sectors, Pawlenty said.
"It is going to be ugly. It's going to be difficult but I am going to do it. I can't stand here and promise big increases, but I am going to do the best I can," he said.
Mayor Bonnie Rietz thanked Pawlenty for helping Austin receive $2.5 million in aide from the federal government and $2 million from the state to buy and relocate the homes of the flood plane. Rietz pointed out the importance of local government aid to Austin.
"As a city we have been very prudent," Rietz said.
Others present at the meeting include Sen. Grace Schwab, Joel Johnson, chairman, president and chief executive officer of Hormel Foods Corp., and Sandy Forstner, director of the Austin Area Chamber of Commerce.
Pawlenty's visit to Austin is part of his tour of southern Minnesota. He visited Albert Lea, Rochester and Winona. On Friday, he and Lt. Gov. Carol Molnau were expected to visit Worthington, Marshall, New Ulm and Mankato.
Roxana Orellana can be reached at 434-2214 or by e-mail at roxana.orellana@austindailyherald.com