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State Representative Tom Anzelc

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Posted: 2010-03-22 00:00:00
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Press/News Releases

House Passes Bill to Help Solve Budget Deficit



Protects Property Taxpayers

St. Paul, MN – The Minnesota House took action today to close one third of the state budget shortfall with a bill to cut $313 million from the state budget. State Rep. Tom Anzelc (DFL – Balsam Township) said some the cuts will be difficult, but was pleased they were able to preserve critical funding for local cities and counties that the Governor wanted to eliminate.

“The biggest difference between the Governor’s budget and our budget is that we are protecting property taxes and jobs and the Governor is increasing property taxes and eliminating jobs," said Anzelc. “At a time when our local economies are starting to improve we should not be balancing our budget with unfair property tax increases on hardworking families and seniors.”

The Governor’s budget would eliminate $250 million in local government aid (LGA) and county program aid (CPA) for 2010. This would come in addition to the $300 million that he already unalloted last year. The House budget would cut less than half the Governor’s amount, $105 million.

There is a stark difference in the amount of LGA that is cut from area cities and counties for 2010.

City/County Governor’s Cut House Cut
• Koochiching County $207,078 $86,925
• Lake of the Woods County $110,835 $46,525
• Itasca County $1,367,019 $573,831
• International Falls $498,007 $173,012
• Grand Rapids $519,912 $218,512
• Coleraine $89,186 $31,948
• Keewatin $79,238 $32,564
• Nashwauk $73,641 $26,376
• Bovey $43,682 $18,359
• Baudette $45,941 $19,309
• Littlefork $26,245 $11,030
• Calumet $23,121 $9,717
• Williams $8,327 $3,500
• Northome $9,508 $3,996
• Effie $2,742 $1,152
• Warba $4,398 $1,848
• Mizpah $713 $300

Anzelc said the bill spreads out cuts across nearly every budget area including higher education, agriculture, state government and the courts. K-12 education and the Health and Human Services budget were not included and veterans’ services received a small funding increase.

The Legislature is pursuing a step-by-step process to balance the budget due in part to the uncertainty about federal money coming into the state as a result of the federal health care reform legislation. What’s remaining after federal dollars are calculated will be used to determine funding levels or cuts to schools and the human services budget.

“This bill is a big step in the right direction toward a balanced budget, but we still have more work to do balance our budget responsibly,” said Anzelc.



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