Editorial - Report: Blame state for property tax issues
10/19/06 - The Independent
Local government leaders have been saying it for the past couple of a years.
A new report reinforces the point: Cuts in state funding to local cities and schools are the reason for big increases in local property taxes.
That's the conclusion of a report issued Tuesday by the League of Rural Voters, which said blame for property tax hikes should be placed on state lawmakers, not local officials.
The report says rural Minnesota residents have suffered double-digit property tax increases the past four years, “as a direct result of cuts in state aid to schools and local government.�
LGA and the per-pupil funding aid typically form the backbone of local government budgets. When they are slashed, governments have two choices: Gut programs often already pared to the bone, or turn to property taxes.
State lawmakers have said they've cut funding to local governments in order to balance the state budget, and sometimes say they should not be blamed for the increase in local property taxes:
After all, they're not forcing local governments to increase taxes.
Yet, the League of Rural Voters says that's misleading. The cuts really have forced cities and schools to increase property taxes merely to survive. The league said property taxes have not gone to exotic uses, and, at times, still don't let local government budgets out of the red.
In other words, the state got off the budget hook by riding the backs of local officials.
“We’ve heard more than one politician claim that higher property taxes are the result of excessive spending by schools and local governments," said LRV executive director Niel Ritchie. "But the facts do not support this position.�
The League of Rural Voters provided some local examples of the impact.
The city of Marshall, for instance, has raised per-capita property taxes by $37 since 2002, yet had a net loss of $4 in the city revenue base. That’s because state aids and credits were dropped by $41, the league said.
The Marshall School District: A net drop of $145, even with an increase of $319 in per-capita property taxes, because of more than $400 per-capita in state cuts.
“People are paying more and getting less,� Ritchie said. “This is a situation where local officials have done their best to deliver services in the face of dramatic state cuts to schools, cities and counties. Even so, local services have been reduced and per-pupil funding has decreased since 2003.
“The governor and state legislators need to acknowledge the problem and take responsibility for shifting the burden from the state general fund and income taxes to local property taxes.�
For local officials trying to balance the argument, the new report is another tool.
Property taxes have gone up because state aid has gone down. That's a simple equation, the report says.
Section: Opinion Date Posted: 10/19/2006
www.marshallindependent.com/opinion/articles.asp?articleI
