Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Covering revenue shortfalls

Published (2/20/2009)
By Sonja Hegman
Share on: 

Local units of government could have another tool to use in times of economic distress.

HF686, sponsored by Rep. Ann Lenczewski (DFL-Bloomington), would give cities, counties and towns the authority to issue emergency debt certificates to finance unexpected revenue shortfalls during the fiscal year. It was laid over Feb. 18 for possible inclusion in the House Property and Local Sales Tax Division’s report.

The bill came about as a result of Gov. Tim Pawlenty’s December unallotment of state aid payments, which occurred after local levy limits had already been certified. Because they would be used in only emergency circumstances, the certificates would be issued without voter approval. Certificates would have to be paid off within two years of the end of the fiscal year that they were issued.

“This is just another tool to help them get some relief,” Lenczewski said.

Gary Carlson, director of intergovernmental relations for the League of Minnesota Cities, said this bill was an alternative to allowing the recertification of local levies in January, something that has never been done before. He also stressed that any circumstances would have to be unforeseen to issue the certificates.

“I hope no one has to use this,” Carlson said. “But we would like to have a safety net in place.”

A companion, SF520, sponsored by Sen. Tom Bakk (DFL-Cook), awaits action by the Senate Taxes Committee.

Session Weekly More...

Session Weekly Home

Related Stories

Revenue raiser raises none
Tax reprieve for flood victims
(view full story) Published 6/1/2010

Betting on TIF
Expanded use of development tool key component to ‘jobs’ new law
(view full story) Published 4/8/2010

Finding funding
Tax ‘jobs’ bill struggles its way to the House floor
(view full story) Published 3/25/2010

Targeting investment
Projects ready to go by July 1, 2011, could benefit from tax bill
(view full story) Published 3/18/2010

At Issue: Holding firm on funding positions
Historic deficit magnifies differences on how to pay for state services
(view full story) Published 5/29/2009

At Issue: Dealing with difficult reform
Tax bill squeaks by House floor, conferees begin work
(view full story) Published 5/1/2009

First Reading: Mustering courage and bold reform
‘Tough’ choices made in tax bill; new bracket created, some loopholes closed
(view full story) Published 4/24/2009

Minnesota Index: Taxes
Figures and statistics on taxes in Minnesota
(view full story) Published 4/24/2009

At Issue: Innovating property taxes
House division chair takes a stab at reform
(view full story) Published 4/3/2009

At Issue: Giving back local control
Counties could have option to impose sales tax
(view full story) Published 3/27/2009

First Reading: Making the state more progressive
Tax chairs take a stab at reform
(view full story) Published 3/20/2009

At Issue: Challenges ahead for taxpayers
Division seeks public’s input into property tax issues
(view full story) Published 1/9/2009