MCDA executive director Steve Cramer sent this reply to my question about
how the proposed state property-tax deal will affect Minneapolis finances:
I'm not the best authority, but I can give an overview. Bill Barnhart from
the City Coordinators Intergovernmental Relations Office or Pat Born the
Finance Officer could provide more detail. Generally I don't think the
property tax reform package will decrease City revenues from property taxes
or local aids much if at all in the immediate term.
Who pays what proportion of taxes (lower value homes versus higher value
homes versus commercial property, etc...) will definitely change, which is
the crux of the on-going tension between Senate and House tax conferees. And
municipal levy limits will also be imposed as I understand it, which may
eventually constrain the City's ability to generate property tax revenue.
To put my own two cents in, I'm concerned that in addition to the impact on
development finance which has been discussed the last two days the property
tax reform package is underfunded, relying on the "good times" to generate
enough state revenue to take over school funding and maintain local
government assistance. When the good times become less good, what will be
the first to give?
--forwarded by David Brauer, list manager
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