Increases in local aid are at stake in tax bill

05/30/2007

Increases in local aid are at stake in tax bill
The bill includes the most significant increases since cuts were made in 2003. Officials of several cities say they are badly needed.

By Larry Oakes,
Star Tribune
Last update: May 29, 2007


DULUTH - The $3 million wouldn't exactly put the city of Duluth in tall cotton. But it's enough to have City Administrator John Hall hoping that Gov. Tim Pawlenty doesn't veto the tax bill that arrived on his desk Tuesday.
"I have a list of desperate needs as long as your arm," Hall said.

He clicked them off: antiquated water lines, frost-heaved streets, storm water runoff basins -- projects he said have been deferred for years because the city hasn't been able to afford them.

Other Minnesota cities also are waiting anxiously because the tax bill contains the most significant increases in Local Government Aid (LGA) -- the backbone of many city budgets -- since cuts were made in 2003. A veto would keep Duluth's to-do list growing, and could further squeeze other cities that have already cut services, delayed improvements or raised property taxes to make up for the cuts in local aid.

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