Commentary: GOP LGA cuts raised taxes on those who can least afford it

08/03/2006

By: Tom Rukavina Bemidji Pioneer - 08/03/2006

On a recent campaign swing through the Iron Range, Republican State Auditor Patricia Anderson called the 2003 cuts in Local Government Aid to cities and towns the “right thing to do” in order to get rid of a deficit of over $4 billion. She said those cuts saved Minnesotans from having their taxes raised. If you look at the facts, it’s obvious our state auditor isn’t telling us the whole story.

In cutting nearly $300 million in LGA, Gov. Tim Pawlenty and the Republicans didn’t save us from a tax increase. They instead decided to pass the buck to local governments to either cut vital services like police and fire protection or raise property taxes to pay for it. Instead of responsible governing, they balanced the budget on the backs of working Minnesotans through higher property taxes. Unlike income taxes, your property taxes can go up whether you’ve lost your job, gotten a pay cut, or retired.

The 2003 cut caused a snowball effect with property taxes. According to the Minnesota House’s independent research office, total statewide property taxes went up by $1.2 billion since 2003 with most of that increase falling on homeowners. They are also expecting property taxes to jump another $685 million next year.

The last four years has made it crystal clear about what Republicans value. If you work hard, your property taxes or rent will go up. Your children’s schools will be underfunded and their college tuition will increase by double digits. Your health insurance will be taken away, or your co-pays will go up.

However, if you’re a millionaire and live in a wealthy community not dependent on LGA, your taxes may not even go up at all. In fact, wealthy suburbs in the Twin Cities, whose homeowners and business owners received millions in property tax relief in 2002, have had to give up very little or nothing at all.

Could it be that both our state auditor and governor are from Eagan, which received a share of Dakota County’s $37 million in relief, and the rest of us are stuck paying their bill?

You have to pay for government one way or another and if Minnesota really does have a budget surplus, it’s because hard-working Minnesotans are paying more than their fair share. It’s time for Republicans to at least be honest with Minnesotans about who’s carrying the burden in our state.

Tom Rukavina, DFL-Virginia, is a member of the Minnesota House and a senior member of the House Taxes Committee.