Commentary; Posted: 3/10/04

Give local officials budget flexibility

By Don Heinzman

During these difficult times when money is tight, local officials need flexibility to make tough decisions.

This is why the League of Minnesota Cities is correct in asking legislators this session to allow limits on local taxing levies that expire, as they are set to do this year.

In 2001, the Legislature took over $900 million of property taxes in changing revenue sources for schools. They placed lids on what other local units of government could tax, because they wanted to be sure property tax payers got some of that property tax relief.

That was then and this is now.

Township, city and county officials had one arm tied behind them last year when they had to make tough decisions, because the Legislature took away $300 million in local government aid and $100 million in tax credit aid. At the same time, the Legislature allowed local units to tax up to 60 percent of their loss in state aid.

Local officials did sharpen their pencils last year and reduced expenditures and raised taxes to provide services people say they need.

They took money from their reserves, which is what a reserve is for, they cut services and they raised fees and taxes. Judging from the publicís response this year, it appears they did the job well.

The public has accepted the cuts so far, resulting in closed libraries, reduced library hours, slower snow plowing, delayed maintenance on parks and roads, reductions in programs and in staff.

Most services, except in human services where cuts were severe, are still being offered.

In growing suburban communities, however, an invisible force is at work. Suburban communities are not adding new positions, they are not filling positions where people are retiring and they are refraining from having new positions.

One impact eventually will be on public safety where most communities are not adding new police officers, even though their communities are adding more streets and housing new residents.

Some DFL legislators have introduced legislation to have some of that local government aid restored. Thatís not likely to happen with a Republican House and Governor in control and with this being an election year.

House Speaker Steve Sviggum, R-Kenyon, doesnít expect cities to lose more state aid during this latest round of cutting $160 million to balance the budget.

Those who look into state legislative crystal balls do not forecast a lot more money for cities, counties and school districts in the next biennium, because job growth is slow as a result of the last recession.

Locally elected officials, therefore, will need the flexibility and no taxing limits coming from the state in order to make the tough decisions.

If local officials do not make good decisions, there is one limit the public has and thatís at election time when they can elect someone else.

Thatís how the system is supposed to work.

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