Governor, your cuts to cities go too far
As a Republican mayor, I share Gov. Tim Pawlenty’s conservative
viewpoint that, at its best, government balances the public’s desire
for services with fiscal prudence. Ironically, it is because we share
this belief in protecting taxpayers that I am disappointed in the
governor’s proposed cuts to the Local Government Aid program. To
me and to the other Republican, Democratic and independent mayors who
share my support of LGA, being a taxpayer watchdog means protecting our
residents from paying exorbitant property taxes for the services all
Minnesotans are entitled to, such as public safety, access to a
regional airport, libraries and parks. The LGA program helps cities
provide these services at an affordable price. Faced with deep cuts to
the program, city officials across the state will be forced to
significantly reduce services or increase property taxes. There
really is no third option. While the governor has suggested cities dry
up their “rainy day funds,” this quick fix is fiscally irresponsible.
Because cities only receive revenues twice a year, we rely on cash-flow
accounts between paychecks to keep street lights on at night and our
police officers ready at a moment’s notice. Depleting these funds would
require cities to short-term borrow in order to pay the bills, which we
can all agree is not a wise way to manage any budget, neither a
family’s nor a city’s. A better way to manage a budget during a
crisis is to acknowledge the harsh realities of the times and act
responsibly. For city leaders, this means making what are always
difficult and frequently unpopular decisions. In inflation-adjusted
dollars, the LGA program received $247 million less in 2008 than it did
in 2002. As a result, cities have shrunk their workforce by 6 percent
between 2003 and 2008, while the state’s workforce has ballooned by 10
percent in the same period. The loss of these jobs at the local level
translates into lost services — fewer police on the street, less
frequently plowed roads, and delays in park maintenance. Similarly,
funding for state programs has actually increased 3.2 percent since
2002, while the revenues available for local spending have decreased
13.7 percent. In a city’s daily operations, this drop in dollars has
meant leaving police and fire positions vacant, reducing library hours,
and closing city parks, in addition to other cost saving measures. All
of these efforts demonstrate that cities are willing and able to make
the hard choices to control spending. Yet despite our best
efforts to account for LGA cuts through spending reductions alone,
property taxes have increased drastically since 2002. Some folks,
including the governor, have asked where this increased revenue is
going if cities also need state aid to pay for services. It’s really
quite simple: property taxes have increased because residents still
require a basic level of services that lower property taxes and a
stripped-down LGA program are failing to support. In both greater
Minnesota and the Twin Cities, property tax rates need more stability
and fairness, and this is what an adequately funded LGA program ensures. Contrary
to what the governor has stated publicly, cities have never suggested
that they should be immune from any cuts whatsoever this session. The
state’s budget deficit is deep, and everyone needs to share in the
sacrifice. We simply feel that the governor’s proposed cuts to LGA —
which amount to $246 million over the 2009-10 biennium, or a 23 percent
cut to the program — will further damage the LGA program’s ability to
keep property taxes and service levels fair statewide. That’s why
we have advocated for cuts similar to the House’s proposal, which
entail an $85 million cut in the 2009-10 biennium. This figure is on
top of the governor’s $54 million year-end cut to LGA in 2008 that many
cities are accounting for in 2009. In the end, protecting LGA
from steep cuts is about keeping Minnesota communities safe,
affordable, and viable. With the stakes high, property taxpayers need
the governor on their side when it comes to LGA.
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