The Minnesota State Auditor issued a report this month that shows Minnesota cities’ property tax revenues have increased 102 percent since 1999. State Sen. Gary Kubly, DFL-Granite Falls, said this report confirms the trend that the Minnesota Senate has been warning against: when state funding to local governments go down, property taxes inevitably go up.
“I don’t think the average Minnesota family needed a report to tell them that property taxes have gone up,” Sen. Kubly said. “A simple glance at a property tax statement confirms that fact. However, this report is important because it draws a direct link between the amount of state support provided to local governments and the increase in property taxes.”
According to the auditor’s 2008 City Finances Report, the percent of cities’ budgets coming from Local Government Aid and other government sources decreased from 32 percent in 1999 to 25 percent in 2008. In that same period, the amount of city revenue coming from property taxes surged from 24 percent in 1999 to 35 percent in 2008.
Since 2003, Gov. Tim Pawlenty has relied on LGA cuts to balance the state’s continuing budget shortfalls. This is a cut that hits rural areas in a disproportionate negative way. In just the past year, he used unallotment twice to independently cut $400 million from city and county budgets through 2010. In contrast, the Senate has presented numerous budget plans since 2003 that maintained support for local governments and lowered property taxes, most of which were rejected by the governor.
“Our cities and counties are working hard to make do with less money,” Sen. Kubly said. “Even though state aid has been cut drastically, total city spending has decreased 7 percent in the last 10 years. Cities are spending much less, but are still unable to make ends meet. The simple fact is that when the state cuts millions of dollars from city budgets each year, they must make a tough choice: cut critical needs, like police and fire protection, or raise the local levy to keep the city running.”
The auditor’s report showed streets, highways, and public-safety costs make up almost half of cities’ budgets.
“When the state hands down such substantial budget cuts, police, fire, and transportation services are the most at risk for cuts,” Sen. Kubly said. “We encountered one city on the bonding tour that had eliminated their police department of seven employees.”
“The state’s ability to take on some of the cost of core local services, like snowplowing and public safety, is a key tool to keep property taxes down,” he said. “Traditionally, Minnesota has used this partnership to maintain relatively low property taxes compared to neighboring states. The more that partnership erodes, the more likely it is that Minnesota will become a high property tax state.”
“We have to make a choice about Minnesota’s future,” Sen. Kubly added. “If the governor wants to continue to cut state funding for local governments, then he has to accept the fact that Minnesota’s property taxes will continue to go up. Personally, I just don’t think we should be balancing the state’s budget on the backs of rural property owners.”
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The Minnesota State Auditor issued a report this month that shows Minnesota cities’ property tax revenues have increased 102 percent since 1999. State Sen. Gary Kubly, DFL-Granite Falls, said this report confirms the trend that the Minnesota Senate has been warning against: when state funding to local governments go down, property taxes inevitably go up.
“I don’t think the average Minnesota family needed a report to tell them that property taxes have gone up,” Sen. Kubly said. “A simple glance at a property tax statement confirms that fact. However, this report is important because it draws a direct link between the amount of state support provided to local governments and the increase in property taxes.”
According to the auditor’s 2008 City Finances Report, the percent of cities’ budgets coming from Local Government Aid and other government sources decreased from 32 percent in 1999 to 25 percent in 2008. In that same period, the amount of city revenue coming from property taxes surged from 24 percent in 1999 to 35 percent in 2008.
Since 2003, Gov. Tim Pawlenty has relied on LGA cuts to balance the state’s continuing budget shortfalls. This is a cut that hits rural areas in a disproportionate negative way. In just the past year, he used unallotment twice to independently cut $400 million from city and county budgets through 2010. In contrast, the Senate has presented numerous budget plans since 2003 that maintained support for local governments and lowered property taxes, most of which were rejected by the governor.
“Our cities and counties are working hard to make do with less money,” Sen. Kubly said. “Even though state aid has been cut drastically, total city spending has decreased 7 percent in the last 10 years. Cities are spending much less, but are still unable to make ends meet. The simple fact is that when the state cuts millions of dollars from city budgets each year, they must make a tough choice: cut critical needs, like police and fire protection, or raise the local levy to keep the city running.”
The auditor’s report showed streets, highways, and public-safety costs make up almost half of cities’ budgets.
“When the state hands down such substantial budget cuts, police, fire, and transportation services are the most at risk for cuts,” Sen. Kubly said. “We encountered one city on the bonding tour that had eliminated their police department of seven employees.”
“The state’s ability to take on some of the cost of core local services, like snowplowing and public safety, is a key tool to keep property taxes down,” he said. “Traditionally, Minnesota has used this partnership to maintain relatively low property taxes compared to neighboring states. The more that partnership erodes, the more likely it is that Minnesota will become a high property tax state.”
“We have to make a choice about Minnesota’s future,” Sen. Kubly added. “If the governor wants to continue to cut state funding for local governments, then he has to accept the fact that Minnesota’s property taxes will continue to go up. Personally, I just don’t think we should be balancing the state’s budget on the backs of rural property owners.”
