Jan says: > I am absolutely convinced that the new state administration will cut the > Local Government Aid (LGA) money in order to close that $3 billion deficit, > and that Minneapolis will take the biggest hit. Then in order to keep up > services, Minneapolis will have to drastically raise property taxes. Not a > pretty picture.
I can't offer a solution, Jan - that will be a good topic in coming days - but I thought it might be helpful to review candidate Pawlenty's own thoughts, as expressed in Skyway News/Southwest Journal last month. Don't know if it offers any comfort, but FY everyone's I.... Skyway News/SW Journal reporter Kevin Featherly: Many say that to balance its budget, the state is going to have to cut local government aids (LGA), a major part of city revenues. Would you cut LGA, and if so, how much? Pawlenty: As I've said, I'm not interested in raising taxes in Minnesota. We're taxed high enough so you can't do things to local government aids that just automatically trigger tax increases. And so, what I'll do is I'll try to protect local government aids but there's going to need to be some changes in Minnesota's budgeting process. We have a state budget that's doubled in 10 years, it's gone up 40 percent in the last five years, it's scheduled to go up 11 percent from the biennium that we're in now to the next biennium automatically, which we're already committed to before any discretionary increases. So we're on pace for probably a 12 to 15 percent increase in the next biennium. Our $2 billion deficit assumes a $3 billion increase in spending for starters. And so we need to slow down the spending train in Minnesota and we need to have a leader who's going to hold these programs accountable, not just for how much money we are spending, but for the results that we're getting. There's a reason for LGA, it's a good program. It's to kind of smooth out disparities and economic resources and tax base between communities and provide some assistance to equalize that. But we need to also make sure that we are approaching it in a responsible fashion. I don't have any plans to cut LGA. But I have also said that besides K-12 education, everything has to be on the table if we're going to be realistic about solving this budget. Featherly: This is a very important issue to the city leaders of Minneapolis. In fact one of the city councilmembers today reminded me to ask you about it. What do you plan to do in terms of letting them in on the conversation? Are you going to prepare them to think that LGA needs to be reconceptualized, a discussion about what it really is and if it is going to work? Pawlenty: Well, I don't have a specific proposal at the moment other than to say that we have a budget deficit that may be as much as two or three million, and we're going to be landing in a new financial world. And the old assumptions and the old way of doing things are going to have to be challenged. And that's not just to limit LGA, that's everything. -end of interview- Obviously, LGA will be cut. But...I would think a key question about whether LGA cuts disproportionately affect MINNEAPOLIS is, how likely is the Senate DFL caucus going to stick together? After all, while the caucus's numbers have been cut, it is relatively more dominated by Minneapolis and St. Paul legislators. I heard Dick Day say he would try to peel off a couple of DFLers to try to get a working majority - if that happens, Minneapolis is in BIG trouble, at least as far as state support is concerned. Can any Minneapolis insiders comment on how likely DFL Senators will hold? I ask strictly within the context of Minneapolis keeping its sole opportunity for legislative power. David Brauer Editor, Skyway News/SW Journal Kingfield _______________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:mpls@;mnforum.org Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
