• Abstract and Figures
• Public Full-text

MARCH 7, 2003 VOLUME 20, NUMBER 9 In this issue: LOCAL GOVERNMENT AID BUDGET FORECAST, COURT COSTS, AND MORE HF668-HF773 ESSION S Weekly Session Weekly is a nonpartisan publication of the Minnesota House of Representatives Public Information Services. During the 2003-2004 Legislative Session, each issue reports daily House ac- tion between Thursdays of each week, lists bill introductions and upcoming commit- tee meeting schedules, and provides other information. The publication is a service of the Minnesota House. No fee. CONTENTS To subscribe, contact: Minnesota House of Representatives HIGHLIGHTS Public Information Services 175 State Office Building Agriculture • 5 Environment • 10 Law • 14 St. Paul, MN 55155-1298 Business • 5 Family • 11 Local Government • 15 (651) 296-2146 or Children • 6 Government • 11 Recreation • 15 1-800-657-3550 Crime • 7 Health • 12 Safety • 16 TTY (651) 296-9896 Development • 7 Higher Education • 13 Taxes • 16 Director Education • 7 Industry • 13 Transportation • 17 Barry LaGrave Elections • 9 Insurance • 14 Assistant Director LeClair G. Lambert Editor/Assistant Director FEATURES Michelle Kibiger AT ISSUE: BUDGET— Lawmakers must account for an additional $125 mil- Assistant Editor Mike Cook lion in spending reductions according to the Department of Finance’s February forecast. • 19 Art & Production Coordinator Paul Battaglia AT ISSUE: LAW— Judicial branch officials say Gov. Tim Pawlenty’s proposed Writers budget would severely affect court operations in the state. • 20 Miranda Bryant, Patty Janovec, Jeff Jones, Tom Lonergan PEOPLE—Rep. Michael Beard (R-Shakopee) brings a background in busi- Chief Photographer ness, religion, and transportation to his new role as legislator. • 21 Tom Olmscheid Photographers PEOPLE—Rep. Laura Brod (R-New Prague) has been preparing for her role Andrew Von Bank, Kristine Larsen as policymaker since she was a little girl. • 22 Office Manager Nicole Wood PEOPLE—Rep. John Lesch (DFL-St. Paul) hopes to help his constituents connect with the issues at the State Capitol as a member of the House. • 23 Staff Assistants Christy Novak, Joseph Rude PEOPLE—Rep. Doug Lindgren (R-Bagley) brings many years of local gov- Session Weekly (ISSN 1049-8176) is published ernment experience to his role as lawmaker. • 24 weekly during the legislative session by the Minnesota House of Representatives Public Information Services, 175 State Office Building, St. Paul, MN 55155-1298. Periodicals postage paid at St. Paul, MN, and at additional mailing DEPARTMENTS/RESOURCES offices. POSTMASTER: Send address changes to Session Weekly, Public Information Services, Minnesota House of Representatives, It’s A Fact: Gov. Stephen Miller • 4 Committee Schedule (March 10-14) • 29 175 State Office Building, St. Paul, Resources: State and Federal Offices • 25 Reflections: What’s in a Name? • 31 MN 55155-1298. Bill Introductions (HF668-HF773) • 26 Minnesota Index: Unemployment • 32 Printed on recycled paper which is 50% recycled, 30% post-consumer content. On the cover: The striking architectural features that are the grand arches of the Capitol Rotunda catch and echo the sounds of many daily visitors to the building Cass Gilbert designed. —Photo by Tom Olmscheid 2 March 7, 2003 IRST READING F★ ★ ★ aid formulas and do not address county fund- ing. Both were presented by Rep. Ann Lenczewski Restructuring funding (DFL-Bloomington) to the House Taxes Com- mittee March 4. No action was taken, but both Pair of bills would alter the way that local government aid is bills may be included in the committee’s larger allocated to Minnesota cities omnibus tax bill, according to Rep. Ron Abrams, (R-Minnetonka), the committee chair and a co- sponsor on both bills. BY MIRANDA BRYANT funds have been targeted for specific mandated HF172 would gradually remove the 1993 he system by which the state gives money programs, including Family Preservation Aid grandfathered amount from the formula — to cities and counties for the provision of and County Criminal Justice Aid. which is the most contentious portion — and T government services needs a major over- So exactly how is an individual city’s aid al- replace it dollar-for-dollar with the “needs” vs. haul, according to top-level officials, includ- location determined? “ability to pay” component. ing the governor himself. A two-part formula considered the The most any one city stands to lose under A short-term fix has been proposed in Gov. “grandfathered” 1993 aid appropriation, and a HF172 is 3 percent annually of local govern- Tim Pawlenty’s 2004-05 budget, which in- city’s “need” and its “ability to pay.” The formula ment aid, Lenczewski said. However, some cit- cludes a deep $1.16 billion cut in state aid. And for determining need considers population, ies would eventually lose all state aid if the new while cities and counties continue to assess population decline, housing built before 1940, formula finds a city doesn’t need it. how the reduction would alter services pro- and commercial and industrial property values. Abrams said the bill appears to redistribute vided to residents, two bills presented In 2002, $565 million was distributed to cit- money from suburban and non-metro re- March 4 would create a longer-term solution. ies. Many recipients rely heavily on the aid, gional areas to smaller cities. Local government aid has two purposes: to including Albert Lea, Duluth, Willmar, St. Paul, Lenczewski responded by asking members reduce property taxes, and to bring equity to and Minneapolis. And some get no aid, such to focus on the bill’s policy and not on the communities by providing state money for as Edina, while others receive minimal amount their community would lose or gain. services, including police and fire, road main- amounts, such as Twin Cities suburbs Eagan, The bill, she said, would do away with two tenance, and administration. Woodbury, Shoreview, Plymouth, Mendota things: the argument that local government aid Advocates say local government aid is criti- Heights, and Chanhassen. is unfairly allocated based on previous spend- cal to communities with low population Property taxes and local government aid are ing habits and not on need; and interest on growth and low property values, as well as for the two biggest revenue sources for most of the part of legislators and governors in tam- large urban cities with ever-growing needs. But the state’s 850-plus cities. pering with the formula to make it fairer. critics say local government aid is flawed be- HF172 and HF593 deal exclusively with city “We have a lot of members across the state cause it distributes money who are in similarly situated based on previous spending cities where one gets a lot of aid habits. Indeed, part of the com- and one doesn’t and they can’t plicated funding formula guar- really explain why,” Lenczewski antees cities their 1993 state said. allocation. She added, “I know this bill The history of local govern- is threatening, but I think it’s ment aid can be traced to a 1971 the right thing to do.” property tax reform measure The bill, which has been in- called the “Minnesota Miracle,” troduced in prior years by both ushered in by Gov. Wendell Republicans and DFL mem- Anderson, that relieved local bers, was enacted into law as property taxes of much of K-12 part of a 1993 local govern- education funding. Likewise, ment aid reform package, but local government aid also aims was repealed in 1994 before it to keep property taxes in check took effect. by distributing state sales and HF593 is probably more income taxes to needy cities. controversial, Lenczewski said. While the program began It would add to a city’s tax with provisions for cities, coun- base the monetary amount a ties, towns, and special taxing city gives up by dedicating districts, today only cities re- PHOTO ILLUSTRATION BY PAUL BATTAGLIA property taxes under tax incre- Lawmakers are grappling with proposed changes to the state’s local government ceive local government aid. aid system, which cities use for such services as public safety. Gov. Tim Pawlenty ment financing to improve- Counties continue to receive and State Auditor Patricia Awada have recommended large cuts in aid to cities to ments in the TIF zone. Adding state money, but since 1991 the help balance the budget for 2004-05. this amount to the formula Session Weekly 3 would show that the given city has a greater ability to pay for its own government services, thereby reducing its need for state aid. Tax increment financing is a development tool that allows the additional property taxes generated by a new or improved development A multitalented Minnesotan to be used to pay for the costs of the develop- Miller served the state on the front lines, in the State Capitol, and elsewhere ment if the city finds that the development would not occur without such assistance. The names Sibley and Ramsey dominate An incident on Dec. 4, 1862 forced Miller Thus, the added property taxes generated from historical accounts of the state’s early days into what Burnquist called “a particularly a development could pay for land acquisition, and receive much of the acclaim for the difficult and delicate task.” While stationed site preparation or other development costs as success of the state in its early days. at Camp Lincoln, near Mankato, Miller was opposed to general government services. And Ramsey can be partially credited for guarding about 300 Sioux Indians who had Lenczewski said that cities voluntarily en- the impact of another early governor: been condemned to death for war crimes. In gage tax increment financing, and should not Stephen Miller. one of many instances, a group of enraged be able to argue for more state aid as a result. Miller served as the state’s chief execu- settlers attacked the camp with the intentions “A municipality is voluntarily choosing to di- tive from 1864 to 1866 – during the trying of killing the Indian prisoners.

Load more

  32

Copy Link