Equalize burdens
Published 4:55 pm Saturday, April 6, 2013
Trends at the Capitol point to a likelihood that Austin and other cities that suffered a big reduction in state tax aid two years may get a measure of security, and even some increased funding, before this year’s legislative session is done. That’s a good thing, because it’s the best way Minnesota has to equalize tax burdens and quality of life throughout the state. It would be best, however, if lawmakers attached a few strings to local government aid.
Two years ago in the midst of a budget crisis, lawmakers made deep cuts in state aid to cities. In most communities, including Austin, the result was an increase in local tax levies designed to make up the difference. If state aid increases — or even if guarantees to avoid further shrinkage are put in place — lawmakers should also include some mechanism to see that those benefits flow on to local taxpayers, just as the costs did during hard times. One such mechanism would be to tie at least a portion of any aid increases to corresponding limits on municipal tax levies. It is too much to hope that property owners would see an actual reduction in taxes, but it is not out of the question to think that future increases could — and should — be held in check.
When lawmakers cut spending at the state level, the result is often higher local taxes on real property, for which cities and counties must bear the brunt of taxpayer displeasure. This year seems like a good time to reverse that trend by ensuring that any increases in aid to municipalities provide a direct benefit to property owners.