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Thursday, September 02, 2010
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| | Email this article • Print this article | Lost local government aid may never come back
If the chief lobbyists for cities and counties - the League of Minnesota Cities and the Association of Minnesota Counties (AMC) - agree that the state's aid to local units of government is about to disappear, local taxpayers had better start paying attention.
If local government aid (LGA) disappears, it will have a major impact on outstate cities like Glencoe as well as McLeod County. A good chunk of their budgets come from state funds.
The LGA came out of the "Minnesota Miracle" of nearly a half century ago. The Miracle was designed to ensure that the basic services were equalized throughout the state. Those who could least afford it, received the larger chunk of LGA. Those more affluent suburbs received little or none.
But the experts think LGA and the "Minnesota Miracle" are dead, never to return.
If that happens, our elected officials will need to either replace that lost funding somehow, or reduce the local services being offered.
It may be an either-or proposition. Either the cities and county begin to raise additional tax revenues, begin to increase fees for its services, or they may simply say they can no longer provide some services in the manner taxpayers have come to expect.
The lobbyists - Jim Miller of the League and Joe Mathews of AMC - explained the Legislature's thinking during a panel discussion at the courthouse last week, and said the state's budget deficits have placed LGA in the crosshairs of legislators and the governor.
To balance the state's budget, an easy target is LGA, which many legislators and the governor think LGA can be replaced by simply increasing local levies. In other words, let the local elected officials face their constituents, and take the heat.
But the state not only cut aid to cities and counties last year, and will likely repeat it this year, they also placed levy limits, thus forcing some tough decisions at the local level.
Locally, the cities and counties have responded responsibly. But that cannot go on forever. There is a limit to cuts and belt-tightening.
Coupled with that are the endless mandates from the state and federal levels. If funding gets cut, will the mandates be eased as well? Not likely.
So the squeeze is on at the local level. The debate will be over raising taxes, or cutting services. Pick your poison.
Taxpayers need to get engaged in the conversation sooner rather than later; now is the time for taxpayers to give their elected officials input on what services are vital and what are expendable. Or if taxpayers are willing to pay additional taxes and fees to maintain the local standard of service.
If taxpayers get involved only during the Truth in Taxation hearings later in the year, it's too late. Taxpayers need to be involved during the preliminary budget process in the spring and summer in order to have more effective input.
And elected officials need to make those early budget debates easily accessible to the public. They need the public's input, too.
So as the state continues to balance its budget on the backs of local units of government, we need to let our local officials know what we expect of them.
- R.G.
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