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State Representative Jeanne Poppe
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4193
For more information contact: Sandy Connolly 651-296-8877
NEWS COLUMN
WHO PAYS FOR LOCAL GOVERNMENT?
How cities and counties pay for local services, such as infrastructure, social services, public safety, libraries, public health, and sewer and water, may not be a question that weighs heavily on the mind of most Minnesotans. We all know we pay property taxes, which can include additional amounts for schools or improvements such as curb and gutter. And when we shop sometimes we pay sales taxes that go to local projects. But is all of this enough to cover the cost of local government?
For many of our local cities and counties, it is not. In fact, our cities also receive Local Government Aid (LGA) and our counties get County Program Aid (CPA) from the state, funding that supplements the income generated through property taxes. LGA was first implemented in 1971, dubbed the “Minnesota Miracle" because it assumed the majority cost of school funding and was designed to allow all cities to have equitable core services. However, this has been adjusted over the past several years. As a result of a series of budget deficits in recent years, the state has made drastic cuts to the amount of aid provided to local governments – money that has been recouped in large part through property tax increases. In fact, since 2003, property taxes have increased statewide by $3.2 billion.
CPA helps cover the services provided at the county level. A newly released report from the Minnesota state auditor’s office underlines the result of less CPA sent to counties. Between 2003 and 2007, the counties’ share of revenue from taxes increased from 37.5 percent to 41.5 percent, while their share of revenues from state grants fell from 33.3 percent to 28.8 percent, the report found. To help cover rising costs and continue to provide essential services, Minnesota counties have been steadily shifting the tax burden on to residents to make up for this dwindling state aid. We pay taxes to sustain our quality of life and to pay for essential services. Locally we pay for services provided through cities, counties and schools. Statewide our taxes are collected to pay for services and programs within the state’s budget.
This year, the Governor is again proposing cuts to both LGA and CPA. If his budget is enacted, LGA to the city of Austin will be cut by just under $580 thousand. CPA to Mower County will be cut by almost $970 thousand over the next two years, and aid to Fillmore County will be cut by $492 thousand. Our local units of government will need to adjust their spending to accommodate this loss in revenue, which will likely mean greater cuts to services and elimination of programs.
In the very near future the MN legislature and Governor will conclude this legislative session with a balanced state budget accounting for a $6.4 billion forecasted shortfall in the general fund. Without new revenue, balancing this budget will mean substantially cutting long expected services and programs. The more severe the cuts are the greater likelihood you will be impacted. Feeling the impact of the reduction in our quality of life including the services and programs we consider essential to life in Minnesota will make us all more aware of the value of our tax dollars at work.
Please contact me with your thoughts on how to best move our state forward. I can be reached at (651) 296-4193 via e-mail at rep.jeanne.poppe@house.mn.
News Items
- POPPE SELECTED AS AGRICULTURE POLICY COMMITTEE CHAIR - (Posted: 2012-11-16 00:00:00)
- Rep. Jeanne Poppe Encourages High School Juniors to Apply for Minnesota House of Representatives Page Program - Application Deadline is November 19th - (Posted: 2012-11-12 00:00:00)
- HORMEL INSTITUTE EXPANSION SIGNED INTO LAW - 2012 legislative session adjourns sine die - (Posted: 2012-05-11 00:00:00)
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