City of Saint Paul Hiring Freeze.
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posted by Bob at Wednesday, June 13, 2007
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Wednesday, June 13, 2007
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4 Comments:
Editorial: St. Paul shows toll of 'no new taxes'
Hiring freeze is harbinger of more trouble.
Published: June 13, 2007
St. Paul residents -- and anybody else -- can try their hand at balancing the city's budget with the Budget Cruncher at www.ci.stpaul.mn.us. That's also where to go to send budget advice to city leaders.
"No new taxes" is having its intended effect on Minnesota's tax-burden ranking among the states. The U.S. Census Bureau figures released this week confirm what a Minnesota Taxpayers Association report first told last summer. Minnesota no longer ranks among the top 10 states with the highest state and local taxes.
For those who measure quality of life by such things, that's gratifying news. But it's a decidedly mixed blessing for those whose definition of the good life encompasses things government secures or supplies -- things like good schools, safe streets, passable roadways, a clean environment. "No new taxes" has meant backsliding on those fronts.
The city of St. Paul seems about to give Minnesotans an object lesson in the consequences of taking "no new taxes" to an extreme. Mayor Chris Coleman announced a hiring freeze last week, one week after the veto of the 2007 Legislature's tax bill by Gov. Tim Pawlenty took $9 million in local government aid away from the revenue side of the city's 2008 budget ledger. It's a $186 million budget that already looks to be running $15.8 million in the red.
That deficit is the predictable legacy of two previous mayors' devotion to the "no new taxes" governing credo. Property tax levies were held flat for more than a decade in the Capital City, as budgets were maneuvered to keep the bottom line in the black. The moves included the raiding of reserve funds, putting some services on fee support, and relying -- precariously -- on state aid to help pay for basics such as police and fire.
When the grip of "no new taxes" at the Capitol squeezed state spending in 2003, St. Paul's share of city aid dropped from $76 million in 2002 to $60 million this year. Because of a formula quirk -- and the veto of the tax bill -- it's expected to drop to $58 million next year. "Two million dollars might not sound like much," said city finance director Matt Smith, "but that's 30 cops."
St. Paul's bag of budget tricks is now empty. The city's hiring freeze is a harbinger of more cost-cutting to come. Coleman's budget for next year is due in mid-August. It's likely to include a sizable levy increase -- the second in as many years -- and more cuts in the services St. Paul residents expect, and upon which they depend.
St. Paul staved off levy increases longer than most. But St. Paul is far from the only Minnesota city looking at red ink in 2008. For example: Tuesday, the Bemidji Pioneer reported that in that city, a 9.9 percent levy increase is under consideration at City Hall.
A League of Minnesota Cities staffer reports numerous calls in recent days from distressed city officials, seeking word that a special session of the Legislature might be called to send more help their way. Those calls might be better directed to the office of the only person who can call legislators to action: Gov. Tim Pawlenty.
"things like good schools, safe streets, passable roadways, a clean environment. "No new taxes" has meant backsliding on those fronts."
Can't wait to see how you blame the Democrats for this one. Pawlenty and the republican legislature (Dems took over in Feb)screwed us.
Eric M.
The city should put a freeze on hiring dip-shits
SAINT PAUL IS IN BIG TROUBLE AND TAXES IS ONLY THE HALF OF IT THE PROBLEM IS THAT UNIVERSITY AVE A FINE EXAMPLE ALMOST NOTHING IS AMERICAN OWNED ANYMORE IN SAINT PAUL SO IN THAT NO MORE JOBS FOR THE PEOPLE WHO BUILT THE COUNTRY THIS IS NOT A ATTACK IT IS JUST THE SAD TRUTH I THINK THE FREEZE HAS TO DO WITH THAT THE JOBS ARE JUST SIMPLY TAKEN TO MANY PEOPLE NOT ENOUGH JOBS THATS ABOUT THE GIST OF IT.
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