St. Paul mayor to explain proposed cuts. Show us the city expenditures Coleman.
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posted by Bob at Tuesday, February 10, 2009
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Tuesday, February 10, 2009
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22 Comments:
Pioneer Press
Posted: 02/07/2009 12:01:00 AM CST
St. Paul Mayor Chris Coleman has scheduled a pair of public meetings this month to discuss city spending cuts.
Coleman hasn't announced his proposals yet but has warned they could include closing rec centers and libraries, as well as laying off police officers, firefighters and other city workers.
Coleman is expected to propose about $44 million in cuts over the next two years to fill an anticipated funding gap.
At each meeting, Coleman will outline his proposed cuts and take questions and comments from the public. City Council members, who will vote on any cuts, might be present as well.
The meetings are:
5:30 to 7 p.m. Feb. 17 at the El Rio Vista Rec Center/Neighborhood House auditorium, 179 E. Robie St.
5:30 to 7 p.m. Feb. 24, at the Como Conservatory Visitors Center auditorium.
— Dave Orrick
Thank you for the invitation Mayor.
:-)
Lets go for city workers first.Then cut funding to non profits like the bottom feeders Repke.Close some libraries.Cut some government pay and the if needed police and fire.They should be the last.
Jim
St. Paul: City business as usual is not an option
Pioneer Press
Posted: 02/11/2009 12:01:00 AM CST
We advocate a "same boat" policy for dealing with our current financial crisis, in which all of us grab an oar and help our foundering vessel make it through the storm. It means we all make sacrifices and help out where we can. And when our governments face tough decisions, we should make them together.
It is in that spirit that we encourage St. Paul residents to join city officials in addressing a large and difficult budget problem triggered by the economic downturn. Mayor Chris Coleman is holding two community meetings this month to discuss proposed cuts in financial assistance the state provides to the cities, a program known as Local Government Aid.
The meetings are open to the public. They are:
Feb. 17, 5:30 to 7 p.m., auditorium of El Rio Vista Rec Center/ Neighborhood House, 179 E. Robie St.
Feb. 24, 5:30 to 7 p.m., Bullard Rainforest Auditorium, Como Park Zoo and Conservatory Visitor Center, 1225 Estabrook Drive.
The downturn in the national and state economy has reduced tax revenue coming in to pay for state and local programs. Gov. Tim Pawlenty's proposed budget solution calls for cuts in LGA, which cities like St. Paul use for basic services — police, fire protection, libraries, parks and the like. In the 2008 city budget, roughly one-third of the city's general fund came from the state.
So when the state's revenues take a hit, St. Paul is bound to feel it. Coleman estimates that the proposed LGA cuts mean the city faces a $44 million deficit by 2010. "To illustrate the magnitude of that, we could eliminate all of our libraries, all of our recreation centers and the office of the City Attorney, and we still would not come close to closing the budget gap,'' he said in a statement.
Chances are everyone will have to grab an oar, including city workers and their unions, state and local taxpayers and the businesses and individuals who depend heavily on city services. Business as usual will not be an option and waiting for manna from heaven — or from the Capitol — is not a serious strategy.
We need straight talk from our leaders and good ideas from our citizens. We hope the two community gatherings help move the conversation along.
My response;
What a crock of shit! Try reducing spending on the projects we don't need right now.
Bob, what would you cut?
And, would it be monies that come from the general fund?
Not spending Federal or state road monies don't save us any general fund dollars. Not spending CDBG monies on redevelopment or MFHA monies on housing don't save us any property tax dollars.
The problem that the Mayor faces is that LGA monies that the Governor cut are monies with no strings attached, they and property taxes are the only monies that the City has to pay cops, firefighters, parks and library employees.
The rest of the money that comes into the City are dedicated for certain purposes. So, road dollars pay for Public Works employees to design the road, plan which road, build the road, inspect the road and repair the road. Cutting the number of workers that get paid with road monies might give you 6 more feet of concrete but it won't give you another cop.
I am guessing that you will see a budget that takes a big whack out of administration, finance, attorneys, DSI, parks and freezes cops and fire.
I would not be surprised to see fees and fines go up again, because he will look to make DSI self sustaining.
Just My Opinion Not Those Of My Employers Past Present Or Future
Chuck Repke
Chuck, I have an answer for you and the folks here.
I have a project to do this morning, when I get back I will put my 2 cents here on this subject.
Well, I take that back. I will give yeah all one cent worth of my opinion. :-)
I wouldn't want Chris to change his campaign strategy. Apparently he has some worries now, thus the reason for this "vote for me" meeting.
Chuck said;
Bob, what would you cut?
And, would it be monies that come from the general fund?
My response;
OK.
Please do not put any significance on the order in which I post these solutions to our budget short fall.
*I would re-evaluate fee's paid to vendors. Negotiate new terms to contracts. And if a contractor doesn't like it to bad! These are tough times there is plenty of companies who will fill their shoes. One example, we are paying over $250 to have a lawn care company come out and clean up a vacant property. WAY, to much.
*I would increase vendor fee's for booths at the fair and Taste of Minnesota. They don't like it to bad! Someone else will gladly pay the fee to earn some bucks.
*I would create tax incentives for business's.
*I would establish a City Lottery.
*This one is controversial, but no more controversial than some of the things going on in this city already. I would make ALL marijuana offense's a low priority. This will save us money in the judicial system.
*Give a city owned home to any police officer who will move back to Saint Paul from the suburbs to a Red Zone. Under the condition he or she renovates the home and lives there for a determined amount of time.
A police officer who lives in the city has stock in the city, and reason to care. They may do this > Any officer that lives in Saint Paul should be able to drive their squad car home. The sight of a squad car deters crime. It also let's neighborhood thugs know there is a constant watchful eye around. Wouldn't it be great if cops moved to red zones in numbers? This alone could have a significant impact on visual quality of life street crimes.
I especially would not cut the police spending at a time when crime will most likely increase due to the effects of the economy. I hope Mayor Coleman thinks real hard about this.
*Another controversial subject.
legalize and regulate prostitution. This would bring in huge revenue. Maybe some state laws in the way of this. This one most politicians agree on but it is a political hot potato. There is a lot of benefits to this to many to get into now.
*Cut Zoo hours.
*We don't have to mow the grass along some roads. We don't have to mow the grass as often on others.
*Cut every other street light on Shepard Road and other roads were possible. One of those big street lights burn about $25 to $40 a month in electrical cost. This would save on the cost of replacing some of these bulbs at $40 a piece too.
*No tolerance traffic laws. Traffic offenders have gotten out of hand. Tag and fine them.
*Open that vacant jail in cooperation with the county and rent the rooms out just as they are to low income folks. This creates housing for low income folks. This will also relieve some of the pressures of over occupancy of homes.
*Create ordinances to fine renters for nuisance behavioral issue.
*Cut Kesslers job and Humphreys jobs. FIRE Magner and Lippert. Revamp code enforcement to be building inspectors versus housing code gestapo's. We would save money from litigation brought on by disgruntled property owners. Currently the city is being sued at an all time high to the point the city attorneys office had to transfer attorneys from their criminal division to their civil litigation division. It is the predatory housing code policies that Coleman supports creating this nasty climate that is creating so much disdain for local government and chasing housing investors away.
*Loosen the code compliance ordinances to make the vacant homes affordable to home owners who are willing to put their own sweat into a home to build equity. This will also make the homes affordable to investors. Within a year we could have many of these homes occupied and bringing in property tax revenues. Screw the city's Utopian plan to make this city the most livable city through a predatory code compliance.
*This one should piss Swiftee off. :-) Fuck those Harley's we buy for the cops. The machines are junk compared to a Goldwing Honda. We as citizens pay big bucks for these bikes, they are not as reliable and need more maintenance than a Honda Goldwing. The cops can abuse the hell out of these Goldwings and they keep on running strong.
*Put a freeze on vehicle and office equipment purchases.
*Boat landing fees on all boat landings within the city.
*I wouldn't even consider raising property tax's one bit more. It seems that the city has entered the rental business with these super high property tax's. How many of you out there are starting to feel like you are renting your home from the city?
Well Chuck, that was just off the top of my head.
Must be my age. I forgot something I wanted to add to this.
*CUT SPENDING on anything we do not absolutely need. Chuck let me know where I can see ALL the expenditures of the city and I will tell you what has to go.
OK - Let's see where Bob's cuts would come and if it would get us anywhere.
*I would re-evaluate fee's paid to vendors. Negotiate new terms to contracts. And if a contractor doesn't like it to bad! These are tough times there is plenty of companies who will fill their shoes. One example, we are paying over $250 to have a lawn care company come out and clean up a vacant property. WAY, to much.
- All of those fees are passed on to the land owner, ultimate cost to the City $0 Since those fees are collected at the transfer of property total savings $0
*I would increase vendor fee's for booths at the fair and Taste of Minnesota. They don't like it to bad! Someone else will gladly pay the fee to earn some bucks.
- Nice idea, but neither of those are events run by the City. The fair is a semi-public state agency and the taste is a private company that rents the park land. total additional monies for the City $0, property tax savings $0.
*I would create tax incentives for business's.
- Those are called subsidies and are called tax increases on home owners or revenue decrease in property tax collection. Total savings $0 Property tax (maybe an increase)
*I would establish a City Lottery.
- City can't do that without State approval. The legislature wouldn't let us do River Boat gambling when Thune was talking about it 15 years ago. Revenue increase $0
*This one is controversial, but no more controversial than some of the things going on in this city already. I would make ALL marijuana offense's a low priority. This will save us money in the judicial system.
- Cost savings to city $0. It makes no difference what crimes are attorneys spend time on, and the Courts are the counties problem not the City. ...again $0
*Give a city owned home to any police officer who will move back to Saint Paul from the suburbs to a Red Zone. Under the condition he or she renovates the home and lives there for a determined amount of time.
A police officer who lives in the city has stock in the city, and reason to care. They may do this > Any officer that lives in Saint Paul should be able to drive their squad car home. The sight of a squad car deters crime. It also let's neighborhood thugs know there is a constant watchful eye around. Wouldn't it be great if cops moved to red zones in numbers? This alone could have a significant impact on visual quality of life street crimes.
I especially would not cut the police spending at a time when crime will most likely increase due to the effects of the economy. I hope Mayor Coleman thinks real hard about this.
- Price of homes lets say $175,000 for a guess - 20 guys do it cost to the City 3.5 million dollars. Savings $0 and another tax increase from Bob.
*Another controversial subject.
legalize and regulate prostitution. This would bring in huge revenue. Maybe some state laws in the way of this. This one most politicians agree on but it is a political hot potato. There is a lot of benefits to this to many to get into now.
- Again an issue only the state can do, the City can't and the chances of it passing less than none. Total savings $0.
*Cut Zoo hours.
- I am guessing that happens and we save $50,000.00
*We don't have to mow the grass along some roads. We don't have to mow the grass as often on others.
- City doesn't mow anything but park land, and I am betting we do less of that... highways are mowed by the state. Savings maybe $50,000.
*Cut every other street light on Shepard Road and other roads were possible. One of those big street lights burn about $25 to $40 a month in electrical cost. This would save on the cost of replacing some of these bulbs at $40 a piece too.
- Beats me what those cost, never thought of that... My gut tells me that the bills for road lighting on a road like that would come from our monies dedicated for roads from the state... but you got me there.
*No tolerance traffic laws. Traffic offenders have gotten out of hand. Tag and fine them.
- Monies go to Ramsey County. Savings to city $0.
*Open that vacant jail in cooperation with the county and rent the rooms out just as they are to low income folks. This creates housing for low income folks. This will also relieve some of the pressures of over occupancy of homes.
- would never get it passed the inspectors, and if you could, the city doesn't run that kind of housing, you would have to buy it from the county and sell it to PHA. Or, hire a ton of staff. I am guessing anyone that would be OK with living in a jail cell has little money and the cost of heating the building would eat up the profit.
Savings $0 costs maybe 3-5 million to bring the building up to code for housing.
*Create ordinances to fine renters for nuisance behavioral issue.
- you mean switch the bill from the owner to the renter? No new money there and less chance of collection. Income $0.
*Cut Kesslers job and Humphreys jobs. FIRE Magner and Lippert. Revamp code enforcement to be building inspectors versus housing code gestapo's. We would save money from litigation brought on by disgruntled property owners. Currently the city is being sued at an all time high to the point the city attorneys office had to transfer attorneys from their criminal division to their civil litigation division. It is the predatory housing code policies that Coleman supports creating this nasty climate that is creating so much disdain for local government and chasing housing investors away.
- I think all of their pay comes from fees collected. Even if some of it is not you have to put someone in charge so the cost just transfers. Savings $0.
*Loosen the code compliance ordinances to make the vacant homes affordable to home owners who are willing to put their own sweat into a home to build equity. This will also make the homes affordable to investors. Within a year we could have many of these homes occupied and bringing in property tax revenues. Screw the city's Utopian plan to make this city the most livable city through a predatory code compliance.
...and this would save $0 on the budget since fees pay for code inspections.
*This one should piss Swiftee off. :-) Fuck those Harley's we buy for the cops. The machines are junk compared to a Goldwing Honda. We as citizens pay big bucks for these bikes, they are not as reliable and need more maintenance than a Honda Goldwing. The cops can abuse the hell out of these Goldwings and they keep on running strong.
- We get a discount from Harley, that is why they bought them, Price of new squad cars $500,000 +
*Put a freeze on vehicle and office equipment purchases.
- that will happen
*Boat landing fees on all boat landings within the city.
- The fees match the cost of managing the marina and go up as costs go up.
*I wouldn't even consider raising property tax's one bit more. It seems that the city has entered the rental business with these super high property tax's. How many of you out there are starting to feel like you are renting your home from the city?
- another 5 mil to cut...
Well Chuck, that was just off the top of my head.
- well off of the top of my head it looks like your proposals so far will cost about and extra 10 million and reduce about 5 million in revenue leaving us 15 million more to cut than we already have to cut.
Like I said the issue is finding things that the City can do in the real world and save real money.
But, this was a great example of how things sound good, but don't have an impact the way one would think.
JMONTOMEPPOF
Chuck Repke
Whats being done to finish ( more like start ) the development along the river front ?
So much for those proposed high buck condos .
Kelly and Coleman have failed in this respect to develop it.
The ol jail is still just sitting empty.
How about using solar power to power downtown street lights ?
Slot machines in the bars.
$5 limit black jack in the bars.
Oh thats right, casinos have bought off the legislators so forget about.
North Dakota has it,they have a state budget surplus.
User fees, sporting event fees, parking meter fees, each book or video checked out at a public library would cost .50 or more.
What can the state do to provide sufficient financial support to cities, stop building stadiums.
Lots of novel ideas but taxing is
not a viable option now.
Chuck,
My response-
VENDORS- the city contracts out a lot of work to private vendors. Most this work goes to folks who have connections with the city. Tough to get into this circle without connections. I can understand why you wouldn't want this piece of cake disturbed Chuck, you probably have friends feeding at this troth. I say cut their contracts or replace them.
We can start right here Chuck with future contracts.
Winifred Conduit Installation
$65,000
March 2008
Payne - Edgerton to Bush
$900,000
June 2008
Rice Street Bridge
$2,300,000
April 2008
Maryland Bridge
$1,700,000
April 2008
Superior Tunnel Repair
$1,000,000
December 2008
Como Bonzai Transition Garden
? (Do we really need this?)
Upper Landing Rip Rap
$3,300,000
June 2008 (Depends on Legislature)
(What the hell is this? Can't it wait?)
Recreation Center Renovations
$500,000 +/-
Summer 2008
(This can wait)
Lilydale Picnic & Lakeshore Improvements
$300,000
Fall 2008 (This can wait)
Play Area - Hamline Hague
$250,000
Fall 2008 (This can wait)
Re-Roofing of Bay Areas 2, 6 & 7 at McCarrons Facility
February 4, 2009
Show me that expenditure sheet Chuck and I will get the Mayor where he needs to be! It takes a real leader to make TOUGH decesions. Bunch of PANSIES looking out for their careers and their Utopian ideas. Pretending to be looking out for us now!
I said;
*I would increase vendor fee's for booths at the fair and Taste of Minnesota. They don't like it to bad! Someone else will gladly pay the fee to earn some bucks.
Chuck said;
- Nice idea, but neither of those are events run by the City. The fair is a semi-public state agency and the taste is a private company that rents the park land. total additional monies for the City $0, property tax savings $0.
I say;
Is the park land the city's? If so, raise the RENT 20%. Any of us that has ever gone to either of these events know the food and drinks are a rip off. Make em pay!
I said;
*Create ordinances to fine renters for nuisance behavioral issue.
Chuck said;
- you mean switch the bill from the owner to the renter? No new money there and less chance of collection. Income $0.
I say;
Well Chuck, you made our argument for us concerning an aspect of the Fair housing lawsuits. I say put the responsibility of the crimes with the individual and you want to go after the folks who have money that aren't connected to the crimes.
I said;
*This one should piss Swiftee off. :-) Fuck those Harley's we buy for the cops. The machines are junk compared to a Goldwing Honda. We as citizens pay big bucks for these bikes, they are not as reliable and need more maintenance than a Honda Goldwing. The cops can abuse the hell out of these Goldwings and they keep on running strong.
Chuck said;
- We get a discount from Harley, that is why they bought them, Price of new squad cars $500,000 +
I say;
The discount the city get's will easily be eaten up with maintenance cost.
There is more to the story of the acquisition of these bikes from Saint Paul Harley Davidson. The infamous Aaron Foster Saint Paul's O.J. Simpson lived upstairs as security for the place. Finney is well connected with the motorcycle organization this dealership has put together. Anyone out there reading want to come here and tell all of us about that motorcycle raffle? :)
I said;
*Boat landing fees on all boat landings within the city.
Chuck said;
- The fees match the cost of managing the marina and go up as costs go up.
I say;
There is no fee's at Hidden Falls or Lilydale landings. It wouldn't be hard to put up a honor system pay pole. Park ranger could be responsible for collecting the fee and enforcing the ordinances with a ticket and fine for not paying.
I said;
*I wouldn't even consider raising property tax's one bit more. It seems that the city has entered the rental business with these super high property tax's. How many of you out there are starting to feel like you are renting your home from the city?
Chuck said
- another 5 mil to cut...
I say;
This is where you and I really part ways Chuck. Not raising property tax's is not a CUT! Leaving this money in the hands of home owners stimulates the economy. Of coarse that is against everything you believe in. You like the folks who are running our country now think big government is the answer to everything. I for one am SICK of my government taking away more and more of our freedoms and telling us how to live our lives.
Bob all of these:
Winifred Conduit Installation
$65,000
March 2008
Payne - Edgerton to Bush
$900,000
June 2008
Rice Street Bridge
$2,300,000
April 2008
Maryland Bridge
$1,700,000
April 2008
Superior Tunnel Repair
$1,000,000
December 2008
Como Bonzai Transition Garden
? (Do we really need this?)
Upper Landing Rip Rap
$3,300,000
June 2008 (Depends on Legislature)
(What the hell is this? Can't it wait?)
Recreation Center Renovations
$500,000 +/-
Summer 2008
(This can wait)
Lilydale Picnic & Lakeshore Improvements
$300,000
Fall 2008 (This can wait)
Play Area - Hamline Hague
$250,000
Fall 2008 (This can wait)
Re-Roofing of Bay Areas 2, 6 & 7 at McCarrons Facility
If you cut them all you would save $0 nothing from your property taxes. All of those are projects that were paid for with either CDBG monies (Federal) or state dedicated road monies.
You could cut them but you wouldn't change one thing in what you need to do to cut the city's budget. It isn't the road money from the state or CDBG that got cut. What got cut is the money that pays for cops, firefighters, lawyers, clerks, park rangers...
This is what I have been saying over and over again. You don't spend that money and it goes back to the Federal Government and they spend it in North Dakota.
...and again Bob the State Fair grounds isn't in Saint paul - they can't do a thing about that.
...and the Taste of Minnesota had been FREE to everyone until this year... they were not making enough and are going to have charge now.
JMONTOMEPPOF
Chuck Repke
Anonymous said...
Well, this is as good of place as any to put this, but did Bob just delete an entire thread on the City budget or am a dreaming that I was in a debate with him?
I some how remember pointing out to Bob that he like most other people have no idea how the budget works or where funding comes from and the limits there are on the City and then POOF!! the entire thread is gone.
Chuck Repke
10:06 AM
I changed the title Chuck and accidentally hit draft instead of publish. I didn't even know of my error until now.
I think we made a good point here Chuck. The fact is NONE of us, except folks like you who hold their hand out for city money, could help the mayor with the budget period without some crucial information. "THE BUDGET EXPENDITURE SHEET for the city of Saint Paul. WHERE IS IT SO WE CAN ALL HELP THE MAYOR CHUCK?
The fact is, these up coming meetings with the public are nothing more than a whitewash scheme to save his ass.
I have a call to duty for the readers of A Democracy. I want a list of all the PORK the city is spending money on.
Chuck, who pays for the poems in the side walks and all those dedication plaques to dead folks in Mounds Park?
Of coarse you could keep us all from guessing what the city pays for and what they don't by directing us to the information so we can look for ourselves. You don't have the gut's to do that.
How bout that $25 million slated for "Invest in Saint Paul". It isn't doing jack shit but lining folks like your pockets in non profits Chuck. It would be better spent in a grass roots effort to end the blight of vacant housing.
http://mn-stpaul.civicplus.com/index.asp?NID=2731
That is the page where the budget documents are Bob. Feel free to review.
The reason that I understand where the money comes from and goes to is that I spent from 1/1/90 until 12/31/97 at City Hall and every year working for Thune I spent hundreds of hours working with budget numbers and funding priorities.
Before I went to work there I didn't have a clue either. It just isn't very simple.
As I has been saying the best way to think of the City's budget is that most money is given to the City to do something particular. Like state road dollars. The state says, here is 10 million bucks to build or repair high traffic roads that meet certain conditions. The City can use that money to pay someone to plan the road, design the road, build the road, light the road and repair the road... but they can't build a park with it or pay for a cop.
Money to pay for cops, firefighters, parks, libraries, lawyers, and administrative staff and debt service, comes from two sources, your property taxes and State LGA. When the governor cuts LGA, that is where the cuts have to come from.
What I am hearing on the street is that 3 parks will close, 3 will be turned over to non-profits to run, one library will close, several fire rigs will be cut and we will loose several hundred employees.
Its a big cut coming, plenty of police officers and firefighters.
You will be happy to know that I haven't gotten any Invest Saint Paul monies. But, almost all of that money is going to dealing with the vacant property problem in disricts 3,4,5,6,7,8, and 9.
In District 2 we were able to direct the City to acquire one vacant house for purchase, and demo and to redeem one house in forecloser (a mutual friend of ours suggested that one). That was the entire allocation for my neck of the woods to this point.
I know that breaks your heart.
JMONTOMEPPOF
Chuck Repke
When you down load the budget, go to the "general fund." It explains that about 30% comes from property taxes, 35% from LGA and 35% from franchise or user fees.
That is the section of the budget where the cuts have to come from because that is the only place where the City spends "clean/general fund" money.
If it isn't on that list, you can cut it if you want to but it isn't going to do you any good.
Got it? What is on the general fund budget is where the cuts have to come from.
JMONTOMEPPOF
Chuck Repke
Thank you Chuck.. You have been a great help bringing understanding to this issue.
Another thing, we wasted a lot of money demolishing a good number of homes that were worth saving. At a cost of $4000 to $15,000 each.
So, let me get this straight. our city has collected what amounts to welfare from the state (LGA) , And now we have been cut off we are screwed. Why is it other cities do just fine without collecting welfare from the state?
Don't give me that stuff they owe us Chuck. That is what I heard from welfare recipients most my handyman career.
I need more time to slap the stupid off of Repke's BS than I have right now.
Suffice to say that re-negotiating vendor contracts is one way to cut significant amounts off expenditures. If the examples given come from dedicated funds, it doesn't mean that the city doesn't pay millions from the general fund to other companies.
And I've heard nothing bout pay freezes. My fellow employees and I received a 10% cut in salary to help our employer make it through these tough times. I've not heard one complaint.
Repke's response is typical of a Democrat faced with tough decisions....cry, whine, make excuses, do nothing.
You need to tell your elected assnozzles that there *is no* magic money bag coming from the state. The state is broke.
If Chris Coleman is incapable of managing the city; if the best he can do is stand on the street corner, squirt tears and piss his pants, he needs to step aside and let an adult take over.
Bob, its your income tax money. Its not welfare. More than thirty years ago the legislature voted to raise your income taxes and send that money back to almost (about a dozen don't get it) every municipality in the state as LGA to help keep property taxes down and they capped how much Cities could raise in property taxes.
Its your money. The tax was put in place for this purpose. Now Pawlenty is stealing your money to take care of his budget problem. He didn't cut that tax did he? I didn't miss something, did I? You aren't getting it back and he isn't changing the law to allow the cities to do their own income tax collection is he?
Saint Paul isn't the only city cutting, it is happening everywhere.
JMONTOMEPPOF
Chuck Repke
St. Paul, Minn. — The state of Minnesota doles out about $3 billion dollars every two years to cities and counties, using income, corporate and other taxes to help buy down property taxes on homes and businesses.
It's a little less than 10 percent of the state's general fund budget.
For a couple of reasons, it's one of the first things that gets squeezed when the state has to tighten its belt.
First, no one sees the money directly. At its most visible, it's one of just dozens of things listed on annual property tax statements. There's almost never a check in the mail.
The other reason this gets squeezed? Cities, can get the money in other ways: raise taxes on homes, businesses and apartments.
That's what's happened in the past, as cities raised their levies at two and three times the rate of inflation or even more after aid cuts in 2003 and 2004.
In the last five years, county aid alone has declined about half a billion dollars, according to Jeff Van Wychen, a tax analyst with Minnesota 2020, a think tank founded by former DFL legislator Matt Entenza.
"Adjusted for inflation, for example, cities have lost about 45 percent of their local government aid, in inflation ajudsted dollars, per capita," Van Wychen said. "Total aid to counties, adjusted for inflation is down about 25 percent. There's no way that local government aids can absorb another large aid cut without having property tax increases."
Gov. Pawlenty proposed slicing another 15 percent over the next two-year budget from inflation-adjusted tax and local government aids.
And when property taxes go up as a result, residents may find their city services have less to offer.
Jim Miller, executive director of the League of Minnesota cities, an association of local governments around the state, says services will have to change.
"I don't know of a mayor or a council member in the state of minnesota that's going to say, 'Well, we have call kinds of options, but lets for the fun of it cut the police department,' Miller said. "Only as a very last result will citizens see diminishment in those critical services. Having said that, things like hours of recreation centers or the availability of soccer fields or even hockey rinks might be seriously affected by these sorts of things."
But Gov. Pawlenty reacted testily to the suggestion that he was just shifting the state's financial problems to property tax payers.
He cited a 3.9 percent property tax cap passed by the Legislature last year. Taxes actually rose more than that, but even critics think it helped.
Pawlenty also said that he thought local officials need to rethink their priorities in a time of unprecedented economic crisis.
"It is not preordained that every time a governmental entity gets a reduction in funding that they must increase taxes. There are other options for many of those governmental organizations," Pawlenty said. "And if you look at the behavior of some of these local units of government, some of them do a fantastic job. Others not so much. We've got county boards in this state, who on the very day that they are complaining about reductions in state aid, they are voting themselves and their employees a pay raise when nobody else in Minnesota is getting a raise."
All told, Pawlenty expects Minnesota to cut more than half a billion dollars from local government aids in the next two years.
That's about a quarter of more than $2 billion dollars in cuts he wants to make, adjusted for inflation.
LGA cuts would take local governments back to the Clinton administration
By Joe Kimball | Published Thu, Feb 5 2009 10:12 am
Gov. Tim Pawlenty's proposed changes in Local Government Aid would take state funding for cities and counties back a dozen years, to a time when Bill Clinton was president. That's an era when Arne Carlson was governor, gasoline was $1.15 a gallon and Google was two people in a garage, according to Steve Peterson of the Coalition of Greater Minnesota Cities.
Back then, Minnesota cities received $368 million in Local Government Aid; the current proposal would put LGA back to $368 million, according to a story by Don Davis in the Bemidji Pioneer.
At a meeting of the House Property Tax Committee Wednesday, Peterson lamented the governor's proposed 25 percent cut in LGA.
But Revenue Commissioner Ward Einess defended the governor's plans, saying it was an essential part of the effort to deal with a nearly $5 billion deficit.
Rep. Morrie Lanning, R-Moorhead, wondered why state agencies are taking only a 5 percent cut under the Pawlenty plan, while local aid is cut 25 percent.
“I would look more closely at state government,” Lanning said, adding that the local cut percentages should be closer to state cuts.
Large losses in state aid to cities have caused property taxes to shoot up at the same time that investment in local services and infrastructure takes a nose dive. Minnesota's major city organizations have united in an effort to halt this ongoing erosion of state support for property tax relief and local services.
In the past, cities have disagreed among themselves regarding the best way to distribute state aid. Disputes between the central cities, metropolitan suburbs, greater Minnesota regional centers, and small cities about who should get the largest slice of the local government aid (LGA) pie have been a road block to reversing the large cuts in city LGA made in 2003 and 2004.
Minnesota Cities Work for Unity Plan Amidst LGA Cuts
Minnesota cities decided to bury the hatchet this year (and not into each other). The "City Unity" LGA proposal has been endorsed by the leaders of the largest city organizations in the state and by the mayors of Minneapolis and Saint Paul. The League of Minnesota Cities, whose membership includes 829 of Minnesota's 854 cities, also endorsed the plan.
The per capita decline in LGA in Minneapolis and Saint Paul has been more than three times greater than that of other Minnesota cities. The Unity LGA proposal restores only a portion of the aid cuts in these cities.
However, given that aid to the central cities has continued to shrink in recent years and given that this decline is projected to continue into 2009 unless changes to the LGA program are made, leaders in both cities are supporting the Unity LGA proposal.
Saint Paul Mayor Chris Coleman noted the severe impact that aid cuts have had on the budget of his city.
"Even with recent property tax increases, the real purchasing power of the city's revenue base has declined by 24 percent since 2002 after adjusting for inflation," said Mayor Coleman. "This has lead to painful cuts in parks and recreation, consolidated departments, and tough choices on spending."
"The LGA increase in the Unity proposal won't solve all of Saint Paul's budget problems, but it's a good start," added Coleman.
Many inner-ring suburbs are experiencing some of the same problems as Saint Paul and Minneapolis, as crime and other social problems spill beyond the borders of the core cities. These communities also have aging infrastructure, presenting additional costs for maintenance of roads, sewers, and public buildings.
According to Tom Goodwin, President of Metro Cities and an Apple Valley Council Member, "Many metro area cities have lost all of their LGA in recent years, at the same time that their need for state assistance and property tax relief is increasing."
Goodwin notes that more than 50 metro cities have lost all of their LGA since 2002, including older and relatively low tax base communities such as Blaine, Brooklyn Park, Cottage Grove, and Champlin.
While some metropolitan cities have managed to hold on to some LGA, nearly all have seen extremely deep cuts. Cities like Brooklyn Center and Richfield have lost up to half or more of their LGA since 2002 after adjusting for inflation. Overall, from 2002 to 2008 the LGA received by metropolitan cities has declined by 48 percent in constant 2008 dollars.
"The thing about the Unity proposal that I like is that it recognizes the urban problems that our core cities and older suburbs are facing," argued Goodwin. "Many of the cities that were facing the choice of either increasing taxes or cutting services are finally getting some relief."
A problem with the current LGA system is that a city's state aid can vary significantly from year to year, making it difficult for cities to plan their budgets. According to Bill Barnhart, a lobbyist representing the North Metro Mayors Association, the Unity proposal largely eliminates this volatility problem.
According to Barnhart, "The current system has resulted in large annual aid variations for many cities. This has been a particular problem for northern suburbs. The Unity proposal fixes this problem."
Rural cities rely more heavily on LGA than most metropolitan cities because of their smaller tax bases and because many rural cities serve as regional centers, drawing in people from surrounding areas to work, shop, and take advantage of city facilities such as libraries and hospitals.
"The influx of people coming into our cities creates the need for public services that is difficult for many rural cities to afford," said Tim Flaherty, lead lobbyist for the Coalition of Greater Minnesota Cities. "The average income in greater Minnesota is much less than in the metro area. Without LGA, many of our cities would have a very hard time paying for adequate public services."
The City Unity LGA proposal eliminates "greater Minnesota regional center aid," which currently sends $25 million annually to larger cities outside of the metropolitan area. However, the proposal creates a new type of aid that distributes dollars to both rural and metro cities based on the concentration of jobs in each city. According to Flaherty, "the job aid portion of the city proposal helps to target aid to cities with overburden. Both rural and metro cities considered this to be a reasonable compromise."
Of the 854 cities in Minnesota, more than 700 have populations under 5,000. There is tremendous diversity among these small cities in terms of their need for public services and their ability to pay for these services locally. LGA experts have long struggled to come up with a way of distributing aid to small cities in a way the adequately accounts for variation in the need for state assistance.
The City Unity proposal provides small cities with an additional $6 per capita per year.
"Six bucks per person per year may not seem like a lot of money," said Dave Engstrom, Director of the Minnesota Association of Small Cities, "but it goes a long way in some of our communities. The $6 per capita increase helps to get assistance to small cities in a way that does not cost the state a lot of money."
The $6 per capita feature of the Unity proposal comes to $4 million statewide.
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