Mayor Rybak: Republicans’ LGA proposal is a one-legged stool
Communities willing to do fair share, but in last eight years have already done more
January 18, 2011 (MINNEAPOLIS) — Minneapolis Mayor R.T. Rybak today released the following statement about Senate Republicans’ proposal to cut Local Government Aid:
"Minnesotans want Republicans and Governor Dayton to work together to put people to work and solve our budget crisis fairly. Unfortunately, it appears that with SF60, the Senate Republicans have chosen to do neither.
"The Senate Republicans’ proposal is a one-legged stool of cuts only, with no new reform and no new revenue. We’ve seen this movie before: they would simply continue a deeply misguided policy that passes the State’s fiscal problems onto communities, is directly responsible for driving property taxes higher statewide and has hampered our ability to keep people safe.
"In addition, SF60 will not put any Minnesotans to work. In Minneapolis, more cuts to LGA will lead to layoffs of police and firefighters, which I outlined in September.
"The Legislature could instead look for inspiration to Minneapolis, where we’ve taken a balanced, three-pronged approach of cuts, reform and revenue. Over the last nine years, this approach has allowed us to: balance spending with revenue not just year to year, but five years out; pay down $130 million in debt; and restore the City’s AAA credit rating. And we’ve kept costs down: we’re spending 12% less this year than 10 years ago and have 10% fewer full-time positions than 10 years ago.
"Minneapolis and communities across Minnesota are willing to do their fair share to help solve the State’s budget crisis and put people to work — but over the last eight years, we’ve already done much more than our fair share. Minnesota’s taxpayers have a right to expect more out of the Legislature’s new majorities than just more passing the buck."
Quick facts: the 2011 City of Minneapolis budget
Minneapolis is spending less, while the State is spending more
In 2011, the City of Minneapolis will spend nearly 12% less (after adjusting for inflation, all funds) than it spent 10 years ago (in 2001).
By way of comparison, the State of Minnesota will spend nearly 29% more (after adjusting for inflation, all funds) than it spent 10 years ago.
In 2011, the City of Minneapolis has 10% fewer full-time positions than 10 years ago.
2003 vs. 2011: State Aid cuts fall directly on Minneapolis taxpayers
In 2003, State Aid comprised 40% of City of Minneapolis General Fund revenue.
• In 2011, State Aid comprises only 22% of General Fund revenue.
In 2003, property taxes comprised 29% of General Fund revenue.
• In 2011, property taxes comprise 42% of General Fund revenue.
Published Jan. 18, 2011