DEED’s “Road Show” tour, led by agency commissioner Dan McElroy and other agency staff, will visit 11 cities across the state starting June 22 in Rochester. This year’s theme is “New Tools for New Times.”
These tour dates offer local elected officials and others an opportunity to learn more about the agency’s economic development tools, including the recently passed Angel tax credit, Research and Development tax credit, and local energy improvement programs, among others. DEED will also give an overview of the 2010 legislative session as it pertains to economic development and job growth.
DEED’s road show is an excellent opportunity to interact with top DEED staff about your specific economic development needs and plans. Click here to learn more about the DEED tour, or to register for a meeting near you.
Posted
May 28th 2010 in Economic Development, Uncategorized
Stop by New Ulm June 26 and 27 for the city’s annual Auto Fest. This large car, motorcycle and truck show—located in New Ulm on 2403 South Broadway in Maday Motors and Joe’s Camper Sales parking lots—features over 350 vehicles displayed in shimmering rows of shining metal! The event is not judged, so participants are welcome to enter their vehicle whether it’s a family “driver” or detailed custom job. Food and drink sales and a DJ are staples of the event; sometimes a model car show and other highlights such as dyno testing are offered.
To learn more, visit www.autofest.org.
Posted
May 26th 2010 in CGMC Events
Join fellow city officials and CGMC staff members for a recap of the 2010 legislative session and a preview of this year’s summer conference during the annual CGMC breakfast at the League of Minnesota Cities conference in St. Cloud. The meeting will be held June 25 at 7:00 a.m. in the Wilson Suite of the St. Cloud Civic Center; breakfast will be served. This will be a great opportunity to hear about the challenges that cities will face in 2011 and to begin discussing ways to address them. CGMC members are encouraged to invite non-members who might be interested in learning more about the CGMC. If you plan to attend, please RSVP to Colleen Millard at cfmillard@flaherty-hood.com.
Posted
May 19th 2010 in CGMC Events, Uncategorized
The Minnesota Department of Natural Resources (DNR) is partnering with the Citizens League to organize 16 regional meetings around the state for May and June. At these meetings, citizens, civic leaders, and interested organizations are invited to participate in a discussion about the future of Minnesota’s parks and trails and funding sources. The locations and schedules for the regional meetings can be found here. These meetings will be a great opportunity to offer your vision for Minnesota’s parks and trails. You are encouraged to share this information with citizens, organizations, and others who might be interested.
Posted
May 19th 2010 in CGMC Events, Parks and Trails
Earlier this morning, the legislature passed its budget deal, which includes no further cuts to LGA and MVC. The bill ratifies the governor’s unallotments to LGA/MVC, and the legislature’s cuts from earlier in the session are still applicable, but the base funding level for city aid programs going forward is not impacted by the final bill.
The budget deal was the result of several negotiation sessions with the governor over the weekend. Reaching an agreement hinged on a dispute over funding and program changes for Medicaid and GAMC. In the end, the governor and the legislative leaders struck a deal through which Governor Pawlenty or the next governor will be able to opt-in to a federal health care program by January 15. Because these negotiations prevented the legislature from voting on the budget deal by midnight, the governor called a special session for Monday to allow both chambers to vote on the bill, which passed in the House by a vote of 97-32 and in the Senate by a vote of 52-14. The governor is expected to sign the bill later today.
In addition to most of the governor’s unallotments being ratified, other features of the bill include an increase in the K-12 education shift from $1.7 billion to $1.9 billion, several accounting changes in the tax area, and no inclusion of over $400 million in anticipated federal funding. Although the state is not counting on this money to balance its budget, many believe that it will eventually be delivered, which will create a reserve fund for the state and likely prevent unallotments of city July and December aid payments.
Because the bill language became available very early this morning, CGMC staff is still reviewing it to see if there are any other impacts to cities (e.g., any language relating to levy limits). As these details become clearer, we will keep you updated via the CGMC website.
Posted
May 17th 2010 in LGA, News, State budget
DFL legislative leaders and Governor Pawlenty reached a budget agreement late Sunday night. The deal will be passed by the legislature during a brief special session that started at 12:01 a.m. Monday morning. The bill contains no new cuts to city aids and credits, but does ratify the governor’s unallotment cuts.
Posted
May 16th 2010 in LGA, News, State budget
With the governor vetoing a legislative budget plan that would have protected LGA and Market Value Credit (MVC) from further funding cuts in 2010, the legislature will look for ways to redraft their plan in a way that will generate more support from the executive branch. Prior to last week’s unallotment ruling, the governor released a proposal for closing the state’s budget gap in light of delayed federal funding; this plan included an additional $87.5 to $102 million reduction in LGA and MVC for 2010 (an exact cut amount is unknown due to the uncertainty of how cities and counties would split the overall proposed cut to property tax aids and credits). The graph below shows that a cut on the low end of this range—on top of the governor’s 2010 unallotments to LGA and MVC and the legislature’s supplemental cut—would amount to an overall 43% reduction of LGA and MVC in this year alone. Even without the governor’s proposed supplemental cut, LGA and MVC have been reduced 29% in 2010 through unallotment and legislative action.
*Assumes additional $30 million reduction in aids and credits is split 50/50 with counties.
These figures beg the question: At what point will cities have played their fair role in helping the state balance its budget? While the state continues to shift its budget problems down to the local level, communities are losing cops, firefighters, library hours, and parks, and property taxpayers are footing an increasing bill for fewer services. Cuts to cities have been disproportionately deep compared to the sacrifices asked of other programs—not because cutting cities is good policy, but because it prolongs the state from making the tough choices necessary for confronting its long-term structural problems. As the legislature crafts a new plan for closing the state’s budget gap, they must acknowledge that excessive cuts to LGA and MVC are dismantling communities across the state and that it’s time to protect these programs from further reductions.
Posted
May 12th 2010 in Jobs, LGA, News, Property Taxes, State budget, Uncategorized
Come to Worthington to enjoy the windsurfers on Lake Okabena, take a windsurfing lesson or two, and relax by the lake with some refreshments and live music. This event will be held June 11-13 at Sailboard Beach, Lake Okabena in Worthington. Learn more at www.worthingtonwindsurfing.com.
Posted
May 11th 2010 in CGMC Events
Mayors from St. Paul, Minneapolis and greater Minnesota gathered at the Capitol today to deliver the follow message regarding the governor’s latest plan to cut LGA:
St. Paul, Minn.—Devastating, disproportionate and irresponsible. That’s how Minnesota city leaders characterized Governor Tim Pawlenty’s latest round of proposed cuts to local government aid (LGA). Mayors from across the state met in St. Paul today to reject the governor’s recently announced budget plan and call on lawmakers to clean up the state’s budget mess before asking cities to do the dirty work.
“Cities have made the tough choices,” St. Paul Mayor Chris Coleman said. “We have done more with less, found new efficiencies, made painful cuts and even raised property taxes. It’s time for leaders at the Capitol to make some tough decisions and come together to solve the state’s long term deficit without shifting the burden to our cities.”
The stakes are high, and the decisions made in St. Paul over the next few weeks will be felt across Minnesota for a generation, Coleman stated.
“We are here today to deliver a message that our cities, big and small, are going to stand and speak with one voice to ensure that we have the resources we need to keep our economy growing, keep our cities safe and to keep Minnesota strong.”
Since 2002, LGA has been reduced by over $1 billion and property taxes have increased over 60 percent statewide. In the last three years, the governor reduced the program by another $200 million via his unallotment power. Combining the governor’s 2010 unallotment and latest proposed reduction of at least $87.5 million with a $52.5 million cut passed by the legislature this session, city aids and credits face a 43 percent cut for 2010.
“Our communities can’t sustain this magnitude of cut, our communities are at stake” said Cloquet Mayor Bruce Ahlgren. “It will simply be devastating to our residents and small businesses. In our city, it’s come to the point where police and emergency services are on the chopping block. Communities—especially those in greater Minnesota—are facing a tough road to economic recovery having lost such a significant source of funding.”
Governor Pawlenty’s plan attempts to close a budget hole of over $400 million that will remain open unless anticipated federal money reaches the state before the legislature adjourns May 17. City officials agreed that it was wise to have a contingency plan in place should these funds be delayed, but stressed that the governor’s plan simply shifts the burden of budget-balancing to the local level.
“Tough times require tough choices—the state has failed to make them, while cities and communities have. We have structurally balanced our own budgets and reformed the way we do business while staying focused on the basics of keeping people safe, creating good jobs and creating good futures for kids,” said Minneapolis Mayor R.T. Rybak.
“Strong communities where businesses want to create jobs and families want to raise their kids are what will pull our economy out of its downturn. Minnesotans have a right to expect that legislators and the governor will stop using their cities and communities as a short-term fix and will finally come together to solve the state’s long-term budget crisis once and for all.”
Posted
May 6th 2010 in LGA, News, Property Taxes, State budget
Yesterday afternoon, Governor Pawlenty released a plan to balance the state’s budget based on the belief that $400 million in anticipated federal money will not be delivered to the state before the session adjourns. The governor’s plan would reduce state expenditures by a total of $536 million. For cities, the governor’s cuts mean an additional $87.5 to $102.5 million reduction on top of $52.5 million cut by the legislature earlier in the session. If enacted, this will make the session’s final cut to LGA/MVC $15 to $30 million more than the governor’s original budget recommendations, a total cut between $140 and $155 million. This, of course, is on top of the $128 million unallotment for 2010.
To see how your city would fare under the governor’s proposed cuts, click here for a city-by-city run. The final columns on the far right side of the spreadsheet show a city’s final cut based on the low-end estimate and high-end estimate.
Posted
May 5th 2010 in LGA, News, State budget
