Samantha Smart wrote:
".I am proposing a four-pronged financial solution <for the financial shortfalls for the >Library System>
* The City of Minneapolis should assess a dedicated property tax levy that would go >specifically for Libraries.
The Library Board already has a dedicated property tax levy. The Park Board, the Public Housing Authority, the Municipal Building Commission (City Hall), four pensions, and the Board of Estimate and Taxation also have dedicated property taxes.
*The City of Minneapolis should also assess Library Building Impact Fees, a property >tax assessment placed on new building and significant renovations (i.e, conversions to >"lofts" and condos).
Impact fees are currently illegal in Minneapolis. Also impact fees are typically used when there is a growing population who need new infrastructure. Minneapolis was completely built out in 1950 and Minneapolis's population and housing stock has been remarkably stable since then. This makes it hard to argue for a special tax only on new development. Also, impact fees would create an economic disincentive to development in Minneapolis. Over the next 30 years, a million people are moving into our region. Minneapolis needs to capture as many of those people as possible to expand its tax base and maintain vitality.
*Minneapolis and the Library Board should be much more forceful and persuasive >about lobbying the Governor and State Legislature to return previous levels of LGA >funding.
I would agree that one factor in library funding reductions has been the cuts in local government aid (LGA). In 2004 alone, LGA was cut from $117.5 M to $80.4 M, a reduction of $37 M. Some of this has been restored in the last budget, but not nearly as much as has been cut.
We also have to acknowledge getting more LGA is an uphill battle and that there is no free lunch. LGA has been a decreasing share of the state general fund over the last ten years. K-12, Higher Ed, and social service programs related to health care and the elderly have been claiming an increasing portion of the State's General Fund. Slowly over time the Minnesota Miracle that created LGA is being undone, leaving Minneapolis residents rather than the state to pay for the higher costs associated with being the center of the region.
Two other major factors in the financial problems of the library are the economic downturn which reduced the value of commercial properties and the changes in the property tax system since 1998 which have shifted tax burdens onto homeowners. There should be some recovery of the commercial/industrial tax base but this will not completely offset the losses from the property tax changes. Undoing the changes in the property tax system will be ferociously opposed by big business, the wealthy, and big rental property owners who received the lion's share of the tax breaks.
And simply raising property taxes isn't the answer either. Property tax collections, in real dollars taken out of people's pockets, have increased from $152.6 M in 2002 to $186.7 M in 2005, or an increase of 22%. And due to the changes in the property tax system, the average homeowner is seeing increases much larger than this because commercial/industrial and other properties have seen substantial decreases. Taxes on my bungalow have gone up 75% over the last 10 years and I count myself lucky compared to many other people.
As tempting as it is to advocate for one government service, one has to also maintain the broad financial vision of the City. As fervently as some people love their libraries, there are others that love parks or feel we need additional police officers or fire fighters or more pothole repair or increased snow plowing, all of which come out of the same pot of money. The trick becomes in balancing among all these needs and not taxing people out of Minneapolis.
Carol Becker Longfellow Candidate for the Board of Estimate and Taxation Geek is Good! REMINDERS: 1. Be civil! Please read the NEW RULES at http://www.e-democracy.org/rules. If you think a member is in violation, contact the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A Civil City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[email protected] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
