There is more to the proposed 2009 Mower County property tax levy and budget that met the eyes of taxpayers at last Thursday night’s Truth In Taxation hearing.

Much more.

Lurking like a giant gorilla is the impact of the state’s handing of the expected $5.27-billion budget shortfall over the next biennium.

If the state tries to deal with that deficit like it has done with other deficits, it will mean more cost-shifts to local governments.

Given the enormity of the nation’s economic crisis, there may be no other options for state government than asking local government to shoulder a larger share of the burden created by the budget shortfall.

That prospect has county officials and staff waving yellow flags of caution over levy and spending proposals for 2009.

Since the Mower County Auditor-Treasurer’s office staff sent out proposed property tax statements, as well as valuation and tax classification notices in late-November, angry, frustrated and puzzled taxpayers have inundated county staff with telephone calls and face-to-face encounters.

Ray Tucker and Dick Lang, Second and Fourth districts’ commissioners and members of the county board’s finance committee acknowledged that at the 2008 TNT hearing.

Craig Oscarson and Donna Welsh, county coordinator and finance director, respectively, are also receiving telephone calls.

At the TNT hearing, Oscarson warned taxpayers, “You may be at the wrong meeting if your concerns are with valuations and tax classifications.” Both are matters handled by Mower County Assessor Rich Peterson at the behest of the state Department of Revenue.

A year ago, more than 500 property owners in Mower County suffered double-digit valuation increased with changes from the ag-homestead classification to rural residential.

Their complaints and those of this year’s victims should be directed to township and county equalization and review boards; not the county commissioners, according to Oscarson.

Tucker, chairman of the finance committee, announced to disgruntled rural taxpayers at the TNT hearing, “Burn this into your brain: The deadline for appealing the valuation and classification changes is Dec. 15. After that, it’s too late.”

Oscarson and Welsh went a step further and invited taxpayers to make appointments with the county assessor and Welsh to discuss their individual situations.

Much was also made of the announcement a review of the anticipated wind energy tax revenues is higher than originally expected.

The County now anticipates a wind energy tax windfall of $878,000, which will allow a four percent reduction from the proposed levy figure of 21.7 percent to 17.9 percent: 3.9 percent of which will go to general operating expenses and the rest to the jail/justice center project.

Any decrease in the proposed property tax levy will be welcomed.

But push aside individual taxpayers’ personal stakes in the annual county levy and budget process and study the external factors that are out of the county commissioners’ control.

Caution: State

deficit ahead

The Mower County Department of Human Services budget will realize the largest increase in 2009. “This is mainly due to funding reductions from the state of Minnesota in mandated program areas,” Oscarson said.

According to the county coordinator, the shift accounted for $527,277 in additional expenditures by the County this year. Next year, another $218.034 of state cost-shifts will be picked up by the County.

That’s a two-year total of $745,311 in monies Mower County must supply for programs previously funded by the state.

The county is budgeting for only two new positions in 2009: The DHS will get a new financial worker and the Austin – Mower County Law Enforcement Center will get another dispatcher.

The dispatcher position will be 50 percent funded by the city of Austin.

The financial worker position will be 50 percent funded by federal reimbursement.

The proposed new county budget also calls for distributing $371,244 to outside agencies. It represents an increase of only $2,600 over this year’s allocations.

One cut sure to raise eyebrows will happen to the Development Corporation of Austin.

This year, the DCA is receiving $23,400 from the County.

For 2009, the DCA asked the County for $40,000.

It is budgeted to receive $20,000.

The Mower County Senior Center in Austin will receive the largest increase: $5,000 to push the 2009 allocation to $45,000.

However, the increase is not due to increased usage of the Senior Center. It’s coming because of anticipated hikes in energy bills, according to Oscarson.

A 2.7 percent increase in the County’s allocation to the County Library budget is mandated by the state of Minnesota under a “maintenance of effort” agreement.

Despite mandating the increase in funding, the state did not fund the increase.

What options?

The Austin City Council has approved a 7.08 percent levy increase for the county’s largest population center in 2009.

The county’s is 17.9 percent.

A $36-million jail and justice center project will consume the majority of that proposed increase.

And the caution flags waved by local government units watching the state budget deficit reach into greater Minnesota.

“If the state does shift some of their budget problems locally without relieving the County of mandates,” warned Oscarson, “the county will need to look at mid-year budget options.”

And what might those options be?

Answers: Using rainy day funds, reducing allocations in areas not mandates and …… drum roll please ….. reduction in programs and services and layoffs.

Copies of the proposed 2009 Mower County property tax levy and budget are available by visiting the county coordinator’s office on the street-level of the government center in downtown Austin.