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Legislative News and Views - Rep. Jennifer Schultz (DFL)

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Lawmaker's View: Reducing Duluth’s state aid would kill Duluth’s dreams, rebirth

Wednesday, April 22, 2015
Last week the Minnesota House majority made clear part of its “solution” to a nonexistent budget crisis would be to cut $85 million in local government aid payments to the cities of Duluth, Minneapolis and St. Paul.
 
Efforts to cut LGA while Minnesota has a budget surplus are shortsighted and reckless and will hurt Duluth taxpayers and families.
 
The proposed $20 million cut to Duluth accounts for 25 percent of our city budget. The loss of that money would require a combination of huge property tax increases and deep cuts to city services, including street repair, fire protection, police, utility services and services to our neighbors.
 
Majority members in the House have spoken at length this session about how Minnesota’s budget needs to be resolved the same way Minnesota families resolve their own budgets. Last week, Rep. Sarah Anderson was quoted as saying, “I think what we’re trying to do here is just give confidence to Minnesotans that we’re doing our due diligence and tightening our belt just like they’ve had to tighten their belt in their family budgets.”
 
I’m sure most of us can relate. When my family decides how best to spend the income we earn, we budget to pay our immediate expenses, save money in the short term and find ways to save for the long term. Family budgeting is a pretty straightforward principle that most Minnesota families value and employ in their own lives.  
 
That’s why I was shocked when I heard the majority plan was to cut local government aid to Duluth by $20 million, a 70 percent cut, when we actually have a state budget surplus.
 
For a moment I’d like the majority members to put themselves in the position of a family in Duluth. Duluth families are just beginning to feel the recovery from the Great Recession. Families paying back student loans, trying to save to buy homes, trying to send children to college and making hard choices to cover rent or mortgages, groceries, child care, heating and other household expenses will now face large increases in property taxes or rent to cover the $20 million the House majority wants to cut. Dreams fueled by the ongoing economic recovery would die.
 
David Montgomery, Duluth’s chief administrative officer, said, “Our entire Fire Department budget is $14.8 million. We could eliminate our Fire Department completely and we would still have to find $5 million to cut.”
 
The economic success of cities like Duluth is a major factor in the success of Minnesota’s entire economy. In addition to our own residents, every day, thousands of people visit our city for commerce, education, entertainment and medical care. When these Minnesotans visit Duluth, they expect to find nice streets and safe sidewalks, to drink clean water and to receive prompt emergency responses. When Duluth tries to attract new businesses, these things all are on display. These amenities are made affordable with the help of local government aid.
 
These cuts would risk ending the rebirth Duluth has enjoyed in the past few  years, raising taxes, forcing major spending cuts and curtailing any new projects designed to improve our city and stimulate economic growth. Duluth has been pulled back from the brink, but it is still possible to turn it into the Detroit of the North. We cannot allow this to happen.
 
I am imploring my Republican colleagues to make good on their promise of concern for nonmetro Minnesota and take a second look at the damaging effects property tax increases would have on family budgets in Duluth if their LGA cuts become a reality — and to think about that the next time they visit our beautiful city.
 
Rep. Jennifer Schultz represents eastern-Duluth’s District 7A in the Minnesota House.