The fact that a 2 percent property tax levy increase being discussed by city officials and city council members for 2011 will only bring in about $31,000 in new revenue is…is…what should we call it? Depressing? Comical? Unbelievable?
It’s all three of those, probably. You might want to throw in the word “ominous” as well, when you consider how much Local Government Aid from the state keeps the local tax levy in check. It’s even more ominous when you consider the dire condition of the state’s finances, and how LGA is being reduced, unallotted and, it seems, almost becoming a thing of the past when it comes to the state’s future direction charted by our leaders in St. Paul.
The wealthy suburbs don’t like LGA; Even though they don’t need it, they think it unfairly tips the scales in favor of Minneapolis, St. Paul and rural Minnesota. The wealthy suburbs probably can’t fathom a city raising its property tax levy 2 percent and bringing in a whopping 31 grand. It’s why cities like Crookston have to consider various fees, like the new street light utility one, to bring in more significant dollars.
It’s long been a battle with LGA, with legislators representing property-rich suburbs pushing for its demise, or at least a radical change in the way the state supposedly subsidizes cities who can’t get by without it. That battle is only going to get worse because of the gigantic state budget deficit. LGA cuts are becoming the norm, and communities like Crookston are left to cut the budget and/or raise taxes.
But is 2 percent enough to really make a difference? What would Crookston taxpayers rather be faced with, 2 percent now and maybe two percent next year and two percent after that? Or a bigger increase now, and then we’ll see what happens? Or, should our city leaders mirror Gov. Tim Pawlenty and turn a deaf ear to any talk of bringing in more revenue?
There’s time to answer that question, as city officials have just gotten their first look at the proposed 2011 budget and small levy hike. But one answer is already known: The state’s financial outlook, and its impact on state aid and communities like Crookston that rely on it? It’s going to get worse before it gets better. Oh, and there’s that little election thing in November that might have a say in where we go from here, too.
