Commentary, Posted: 12/4/07
Communities short-changed on local government aid
By Don Heinzman
ECM Editorial Contributor
While nearly a third of the legislators are from the suburbs, they certainly don't have a third of the clout.
The latest example is how suburban communities are getting short-changed on local government aid (LGA). Central cities and the range cities have the power on this issue and suburban communities are left picking up the crumbs.
Bill Burns, city manager of Fridley, wrote last week that of the nearly $485 million in aid distributed to municipalities this year, suburban municipalities received $23.2 million or 4.7 percent.
He says the aid is skewed in favor of Minneapolis and St. Paul and the outstate communities, particularly in the Iron Range.
Burns says his city with about the same population as Winona gets $382,341, while Winona receives $10,056,088. His neighboring city, Coon Rapids, gets zero LGA aid.
Local government aid is based on costs of government and the ability to pay. The formula, he says, doesn't take need of growing cities into account, like most suburbs. When the LGA formula was revised in 2003, suburban municipalities lost out.
Why is it that a Legislature with many lawmakers from the suburbs is unable to come up with a fairer LGA distribution? As usual, this local government aid is full of politics, and those with the power get the money.
In the Legislature, says one observer, it all has to do with seniority and majority.
Suburban legislators, many of them new, do not hold key committee posts to control the decision on aids from the state. Some of the chairs of the tax committees in both houses are from out state, where they continue to be reelected and stay in power. The Tax Committee is chaired by Ann Lenczewski of Bloomington, one of the few to have a high position on tax matters from the suburbs.
Suburban legislators are not united. They vote along party and geographical lines. Sometimes, the Northern tier doesn't agree with the Southern tier and visa versa. There is hope, however, because a suburban caucus is meeting and taking up issues as funding of public education and dispersing of local government aid.
Another factor on this LGA disparity is the position of the Minnesota League of Cities, which is dominated by Minneapolis, St. Paul and the out state cities. The Legislature pretty much follows the League's recommendation, because it's an easy decision. Other players are Metro Cities and the Coalition of Minnesota Cities and the North Metro Mayors Association.
Another problem is outstate legislators view the suburbs as having plenty of money to run their communities without needing aid from the state.
Burns's concerns over the need to revamp or at least revise the LGA formula are being heard by all the groups who recognize that there are inequities in the formula. An official of the North Metro Mayors Association assures that progress is being made with all parties, and cites the legislative suburban caucus as a key player.
The hope is something will be done in the short term next session to correct the LGA unfairness particularly towards suburban communities, and that something substantial will be corrected in 2009 session.
Meanwhile, loss of government aid at the local level affects revenues and sometimes ends up in higher property taxes, which are a major bone of contention in suburban communities.
Caledonia Argus
314 West Lincoln St.
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Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com
