Caledonia Argus

Townships see cuts in state aid

Posted: 11/25/03

By Shannon McKinney
Argus News Reporter

Houston County townships received a cut in the last legislative session, but most are choosing not to levy for the lost money.

In March of 2003, when townships were planning their budgets for 2004, they were told by area legislators that they would not be affected by any cuts that were passed by the Omnibus Tax Bill.

But the circumstances changed when it was discovered that they would be receiving a two percent cut in 2003 and a three percent cut in 2004 of the market value credit that the state reimburses the townships.

Houston County Auditor Pete Johnson became aware of the cuts in September through correspondence with the department of revenue and another county auditor. Townships cannot receive any money lost this year until next year, and to do so must hold a special meeting by December 20 to increase their levy for 2004. Mound Prairie is the only township to request a levy increase, said auditor Johnson.

Johnson said there seemed to be a communication gap concerning the new law and contacting those it affected. ìThe fault came with the Minnesota Association of Townships and the Department of Revenue. They neglected to put out a newsletter,î said Johnson.

Senator Bob Kierlin said he was misinformed about townships not being affected by the Omnibus Tax Bill. ìUnless you were on the tax committee you didnít know anything about the final compromises. When we get the tax bill for the final vote, it is several hundred pages and you have 20 minutes to vote on it. You have to rely on the people who were part of the negotiation. And thatís what happened,î explained Kierlin.

Representative Greg Davids, who was one of the area representatives to tell townships that they had not been cut, said he he received some bad advice about the Omnibus Tax Bill. ìI specifically asked staff before I voted on the bill, ëDid the townships get hurt?í Guess what? I got some bad advice and Iím not very happy about it,î he said.

Glenn Meiners, chairman for the Houston County Township Association, said of the countyís 17 townships reaction to the cut, ìI think they all feel the same. Itís uncalled for and a sneaky way of doing it.î

Meiners is also the clerk for the Mayville township, which will not raise the levy to cover the cut. ìThe cut is not that big. We took the big cut two years ago .î

Meiners feels Mayville township will be able to handle the cut since its levy was raised this year to cover the expense of a new fire truck.

Caledonia Township Chairman, Kermit McRae, said the cut isnít big enough for them to levy for.

Brownsville Township Chairman, Delmer Ideker, said the cuts of $1,882 for 2003 and $2,823 for 2004 affect his township greatly. However, they wonít levy for more money because they levied for money two years ago when state funding was cut. ìA lot of time there are important projects that we might have looked at, but now weíll have to table them,î he said.

Contrary to other townships not being aware of the cuts until later, Mound Prairie Township Chair Lester Beckman said they were aware of the possibility of a cut in March and received the OK from taxpayers to raise the levy to cover it. So, in October the township board increased their levy by $5,965, which covers the two and three percent cut from the state. Beckman explained why taxpayers supported the levy. ìEverybody wants their roads graded and their brushes cut and it takes money to do it.î

In response to the cut, Representative Davids has drafted a bill that would return the money that was cut back to the townships. McRae is optimistic about the success of the bill. He said the cuts may not seem like a major amount of money, but 1,144 townships in the state is a lot of people affected.

A lot of legislators were taken off guard by the cut to the townships, said Davids, which is one reason he feels his bill will receive support.

Senator Kierlin is less optimistic about the bill, ìI wouldnít support it. The chance of success in 2004 would be remote, unless the forecast is better than last year. There wonít be any additional expenditures.î

In response to Kierlin, Davids said, ìThey can say I wonít get it done, but let me give it a chance. I have a little more faith because I know who I am. What we did was wrong and we have to right the wrong.î

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