CGMC proposes plan that would cut less LGA funding
Published 12:00 am Saturday, March 15, 2003
The Coalition of Greater Minnesota Cities (CGMC) has created a proposal concerning cuts to city aid that they say is more fair than the cuts proposed by Gov. Tim Pawlenty.
Pawlenty has proposed cutting $376 million in Local Government Aid (LGA) over the next two years. CGMC's proposal has the cities contributing $191 million, a 14 percent cut in aid to all cities.
"(Outstate cities) will take a cut out front that is reasonable and fairly applied so that all cities share the sacrifice," John Sundvor, senior media consultant for the coalition said. "With the (state) deficit at 14 percent of the general fund, we think it would be fair for the cut (in city aid) to be 14 percent."
Most of that $191 million would come from cutting funding for Market Value Credit, a program that reimburses cities for money lost due to a decrease in property taxes. A cut in Market Value Credit would shift the burden more toward areas with a larger tax base -- the suburbs.
"The cities that got LGA in general got the least benefit from the tax relief," Sundvor said. "Now they're asking those cities to pick up the tab. We don't think that's right. We think they should be asking the wealthy cities to help pick up the tab."
Cutting the Market Value Credit program would cost the city of Austin $522,000 this year, which is less than the proposed $933,000 cut.
To make up the rest of the $376 million, CGMC says one option is to repeal the state takeover of the local bus levies. Sundvor said 90 percent of the funding for that program goes to the Twin Cities.
Austin Mayor Bonnie Rietz, who is also the CGMC property taxes and local government aid committee chair, said that the suburbs do not have to fund as many programs as outstate cities, so they could better cope with a cut. Volunteer fire departments, regional libraries and use of the metro airport all contribute to lesser amount of funding responsibility placed on suburban cities, she said.
"We're trying to protect public safety," Rietz said. "In doing that it cuts so deep into the public works system, the library, parks and rec and other things."
Sundvor is representing the CGMC in a tour of local press organizations. He hopes to demonstrate to people that Pawlenty is "attempting to vilify the cities and make them the scapegoat in a situation they had no part in."
He is distributing a CD with Pawlenty's speech at the Gubernatorial Candidate Forum in Worthington on Aug. 1, 2002, in which Pawlenty said, among other things, "… you know you can't run around the state and say, 'I'm not going to increase taxes and then cut LGA in a way that drives up local property taxes. I understand that.'"
The governor's office did not reply to phone calls for comment.
Matt Merritt can be reached at 434-2214 or by e-mail at matt.merritt@austindailyherald.com