New study shows costs of Governor's veto to cities and towns in rural Minnesota
Local governments forced to increase taxes to replace lost state revenues
MINNEAPOLIS, Minn. - June 4, 2007 Home owners and business owners throughout Minnesota will have to make up for the reductions in aid to city and county governments as a result of Gov. Tim Pawlenty's veto of the tax bill last week, according to a study released today by the League of Rural Voters (LRV). The report examined data from the Minnesota State Department of Revenue and legislative research.
"Gov. Pawlenty's veto of the tax bill slammed the door on $462 million dollars of property tax relief for Minnesota businesses and homeowners this year," said Niel Ritchie, LRV executive director. "That is especially bad news for Greater Minnesota residents, who bore the brunt of the Governor's cuts to schools (9.9 percent) and local government aid (30.9 percent) during his first term."
"Local officials have done their best to deliver basic services in the face of dramatic state cuts to schools, cities and counties. Local services have been reduced and per-pupil spending was dramatically cut in Pawlenty's first term and still lags behind 2003 levels."
Research sponsored by LRV shows projected costs to cities, counties, homeowners (based on home prices: low, average, high, extremely high) and businesses (based on annual revenues: $100,000, $500,000 and $1 million). A sample of these costs is shown in the attached table for the following 30 Greater Minnesota communities:
Albert Lea, Alexandria, Appleton, Austin, Bemidji, Benson, Blue Earth, Brainerd, Caledonia, Crookston, Detroit Lakes, Fairmont, Faribault, Fergus Falls, Granite Falls, Jackson, Mankato, Marshall, Moorhead, Morris, Owatonna, Pipestone, Redwood Falls, Rochester, Saint Cloud, Thief River Falls, Willmar, Windom, Winona, Worthington.
Electronic and printed copies of community-specific data are available by contacting Ritchie or The Links Group at the above numbers. It will be posted on the web site this week: www.leagueofruralvoters.org.
The League of Rural Voters was founded in 1985 as a non-profit organization dedicated to increasing the representation of rural people in the public policy making process. The League seeks to build awareness of the economic challenges facing rural communities while advocating for federal and state policies that focus government resources on education, health care and local and regional economic development.
Contacts: Niel Ritchie League of Rural Voters
Office: 612-879-7578 Cell: 612-270-0276
Lynn Nelson The Links Group Office: 612-332-4222 Cell: 612-990-0126
