Created on: 09/25/2009 6:16 PM
By: Kim Johnson

Print Story  Email to a Friend

MN Mayors Speak Out on the Fate of Local Government Aid

It's been nearly 35 years since former Minnesota Gov. Wendy Anderson appeared on the cover of Time Magazine for his efforts in creating the Minnesota Miracle, an innovative way to build up cities with the help of state aid.

But as the state has faced multi-billion dollar budget deficits, that aid to the cities is now in jeopardy. In the last eight years, state aid has been cut 50 percent.

"That is a Minnesota success story that is now at risk," said Duluth Mayor Don Ness.

On Friday, Ness along with the Coalition of Greater Minnesota Cities announced a statewide campaign to showcase how recent LGA reductions have hurt cities by resulting in property tax increases and forcing cuts to city services like police and fire and parks and recreation.

"We are standing here today because Minnesota is at a breaking point, our citizens have been dealt cut after cut after cut," said Park Rapids Mayor Nancy Carroll.

The coalition wants the 2010 candidates for governor to say whether they'll support or reverse those cuts.

They blame current Governor Tim Pawlenty for the majority of the reductions. In a newly launched video of Pawlenty speaking in 2002, the group accuses him of going back on a promise to hold LGA harmless.

But critics of LGA question whether cities have become too reliant on the state and should start looking elsewhere for money.

"We're way out of whack in terms of how much we do depend on local government aid from the state," said Duluth City Councilor Todd Fedora. Fedora has been an outspoken critic of the city's dependence of state aid and says instead there should be more focus on bringing in revenue by expanding the tax base with new development.

Mayor Ness said there are efforts underway to do just that, but completely replacing state aid would be a challenge.