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Heinzman: Governor, legislature deal big blow to local governments |
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By Don Heinzman
Minnesota Governor Tim Pawlenty and the Minnesota Legislature have dealt local municipal and county government a big blow by legislating a cap on the property tax levy.
The law to restrict the ability of the city councils and county boards to levy necessary property taxes to provide services is not justified.
While a 3.9 percent cap on the local property tax levy along with some local government aid will affect communities and counties differently, the measure takes away the ability of locally-elected lawmakers to levy needed taxes and to be accountable for local services.
Pawlenty and the Republican legislators in particular have been successful in not passing state tax increases and reducing state aid to local government, forcing it to pass tax increases at the local level and to take the blame.
In addition, the state government sends mandates down to the local level without funding them, adding to the burden of councils and boards.
All this comes at a time when property values for tax purposes are declining due to the sour economy. That means local governments will not be able to live off the increments provided in the past by property value increases.
Add to this mix increasing costs, particularly higher costs for fuel, and the local taxing picture looks gloomy.
Pawlenty and the Republican legislators insisted that a cap on the local property tax levy was the linchpin for any final budget deal. At first the governor wanted a 3 percent cap and gave in to a 3.9 percent cap for the next three years.
The Democrats knew they had to bow to his wishes so late in the session to achieve some of their goals. That’s how last-minute, closed-door sessions work.
The legislative action undermines local control because local officials are elected to decide level of services and level of taxation. Taking that power away reduces their ability to raise revenues for needed services and to be accountable.
No question, people are concerned about higher property taxes. What’s troubling is that higher property taxes have resulted in part from the administration’s refusal to raise taxes at the state level, while reducing the state aid to cities and counties leaving them to use their only revenue source, the property tax.
What upsets local officials is that Pawlenty and the Republican party cast doubt on the judgment of locally elected officials to provide local services by insisting the state should control the revenue increases.
Local officials rightfully contend they should do the job for which they were elected and if the electorate doesn’t like it they can throw them out of office. Their inability to raise revenues weakens local government and was unnecessary.
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