Mayor Rybak: LGA Proposal is Job-Killing Tax Increase
Minnesotans will see right through attempt to divide communities from each other
March 12, 2011 (MINNEAPOLIS) — Minneapolis Mayor R.T. Rybak issued the following statement about the Minnesota House Republicans’ property-tax proposal that was released today:
"This proposal is a tax increase on middle-class families, a job-killer for small businesses and a blatant attempt to divide communities from each other. Minnesota is great because we depend on each other and Minnesotans will see right through it."
Quick facts about Minneapolis’ Local Government Aid and City budget
• Since 2002, Local Government Aid to City of Minneapolis has been cut a total $297 million, including $54 million in last three years.
• The burden of paying for basic services (public safety, public works, public health, etc.) has shifted onto property taxes.
o In 2003, State Aids (mostly Local Government Aid) supplied 40% of Minneapolis’ General Fund revenue while property taxes supplied 29% of the revenue.
o In 2010, State Aids are supplying just 23% of General Fund revenue (based on certified LGA) while property taxes are supplying 44% of the revenue.
• The burden of paying property taxes has shifted dramatically onto homeowners due to State law changes, decline in commercial property values.
o In 2001, Minneapolis homeowners paid 33% of all City property taxes collected.
o In 2011, homeowners are paying 56% of all City property taxes collected.
• The City of Minneapolis spending is 7% less than it did 10 years ago, after adjusting for inflation.
• The City of Minneapolis has 10% fewer full-time positions than 10 years ago.
Since 2002, the City of Minneapolis has paid down $130 million in debt and last year restored the City’s AAA credit rating.
Published Mar. 12, 2011