{"id":11081,"date":"2010-05-27T13:00:10","date_gmt":"2010-05-27T18:00:10","guid":{"rendered":"http:\/\/www.shotinthedark.info\/wp\/?p=11081"},"modified":"2011-09-01T07:59:43","modified_gmt":"2011-09-01T12:59:43","slug":"chanting-points-memo-lga-cuts-are-destroying-minnesota-part-iii","status":"publish","type":"post","link":"http:\/\/www.shotinthedark.info\/wp\/?p=11081","title":{"rendered":"Chanting Points Memo:  &#8220;LGA Cuts Are Destroying Minnesota!&#8221; (Part III)"},"content":{"rendered":"<p>There are a little over five million Minnesotans.\u00a0<\/p>\n<p>About 4.3 million of them live in &#8220;cities&#8221; of widely-varying sizes and government types, from plucky Montevideo up to metropolitan Minneapolis, from conservative Mound to neo-Wobbly Duluth.<\/p>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"http:\/\/farm5.static.flickr.com\/4017\/4575208799_e7c6e34c94.jpg\" alt=\"\" width=\"252\" height=\"192\" \/><\/p>\n<p>These cities have a few things in common.\u00a0 They levy property taxes to pay part of their municipal bills &#8211; and many of them spent much of the past forty years laundering their spending through the state via &#8220;Local Government Aid&#8221;.\u00a0<\/p>\n<p>In their approach to the next election and the run-up to this November (which, for the DFL, will almost surely be as\u00a0 much a matter of running against Pawlenty as anything), the DFL is banging on the ideas that&#8230;:<\/p>\n<ul>\n<li>cuts to Local Government Aid shredded budgets and gutted infrastructure throughout Minnesota, and<\/li>\n<li>Minnesota cities need to &#8220;pay their way&#8221;.<\/li>\n<\/ul>\n<p>So let&#8217;s look at how Minnesota &#8220;pays its way&#8221;, according to <a href=\"http:\/\/www.lmc.org\/page\/1\/property-tax-reports.jsp#proptx9\">data from the League of Minnesota Cities<\/a>.<\/p>\n<p>From 2002 to 2009,. Local Government Aid to <em>all <\/em>Minnesota cities fell 15%.\u00a0<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>2002<\/td>\n<td>2009\u00a0 Initial<\/td>\n<td>2009 after Unallotment<\/td>\n<td>$ change<\/td>\n<td>% Change<\/td>\n<\/tr>\n<tr>\n<td>Total City LGA<\/td>\n<td>$564,990,952<\/td>\n<td>$526,141,547<\/td>\n<td>$481,521,933<\/td>\n<td>($83,469,019)<\/td>\n<td>-15%<\/td>\n<\/tr>\n<tr>\n<td>Total City Levy<\/td>\n<td>$1,060,248,330<\/td>\n<td>$1,689,917,723<\/td>\n<td>$1,689,917,723<\/td>\n<td>$629,669,393<\/td>\n<td>59%<\/td>\n<\/tr>\n<tr>\n<td>Total LGA+Levy<\/td>\n<td>$1,625,239,282<\/td>\n<td>$2,216,059,270<\/td>\n<td>$2,171,439,656<\/td>\n<td>$546,200,374<\/td>\n<td>34%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0You might ask &#8220;what about the changes between 2002 and 2009?&#8221;\u00a0 It&#8217;d be a fair question; while I am focusing on the big picture here &#8211; the gross movement during the Pawlenty Administrion, the fact is that LGA started at $564 million in 2002, dropped to $464 million in 2003, dipped into the $430-million range through &#8217;05, and held in the $480-millions until 2009, when the original amount ballooned back up to $526 million, before Governor Pawlenty&#8217;s unallotment shaved it back into teh $481 million range, roughly where it&#8217;d been throughout his second term.<\/p>\n<p>But check out the second line &#8211; the total property tax levies from all cities.\u00a0 In every year of the Pawlenty Administration, they rose by at least $100 million.\u00a0<\/p>\n<p>As a result, while <em>total<\/em> LGA was off 15%, or about $83 million, for the period (and maybe $3 since the start of Pawlenty&#8217;s second term, <em>even with<\/em> unallotment and the removal of the &#8220;Minnesota Value Homestead Credit&#8221; (in which the state stopped paying cities and counties back for a credit on taxes for high-value homes &#8211; which affected suburbs with high property values <em>vastly <\/em>more than the Big Three cities of Minneaoplis, St. Paul and Duluth &#8211; of which more in a bit.<\/p>\n<p>Those numbers are for <em>all <\/em>cities.\u00a0\u00a0 And throughout Minnesota, hikes outstripped cuts by a factor of 7.5 to\u00a01 (683 milion to 85 million), even <em>after <\/em>unallotment.<\/p>\n<p>Now, let&#8217;s look at the Big Three &#8211; Minneapolis, Saint Paul and Duluth.<\/p>\n<p>Minneapolis&#8217; population grew by 2% during the Pawlenty years &#8211; while property tax levies rose 93% to cover a post-allotment drop of 28% in LGA payments; the city&#8217;s total revenue zoomed up 35% during the Pawlenty years.\u00a0 Hikes outstripped LGA cuts by almost 4 to 1.<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>2002<\/td>\n<td>2009<\/td>\n<td>2009 with unallotment<\/td>\n<td>$ change<\/td>\n<td>% Change<\/td>\n<\/tr>\n<tr>\n<td>Mpls LGA<\/td>\n<td>$111,567,143<\/td>\n<td>$88,786,411<\/td>\n<td>$80,249,971<\/td>\n<td>($31,317,172)<\/td>\n<td>-28%<\/td>\n<\/tr>\n<tr>\n<td>Mpls Levy<\/td>\n<td>$121,910,797<\/td>\n<td>$235,717,416<\/td>\n<td>$235,717,416<\/td>\n<td>$113,806,619<\/td>\n<td>93%<\/td>\n<\/tr>\n<tr>\n<td>Total LGA+Levy<\/td>\n<td>$233,477,940<\/td>\n<td>$324,503,827<\/td>\n<td>$315,967,387<\/td>\n<td>$82,489,447<\/td>\n<td>35%<\/td>\n<\/tr>\n<tr>\n<td>Mpls Population<\/td>\n<td>382,446<\/td>\n<td>390,131<\/td>\n<td>390,131<\/td>\n<td>7,685<\/td>\n<td>2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0Saint Paul didn&#8217;t fare <em>quite <\/em>as well; nearly doubling the property tax levy to its stagnant population \u00a0<em>only<\/em> compensated the 22% drop in LGA with an overall quarter hike in LGA\/property tax revenue.\u00a0 Hikes outstripped cuts by almost 3 to 1.<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>2002<\/td>\n<td>2009<\/td>\n<td>2009 with unallotment<\/td>\n<td>$ change<\/td>\n<td>% Change<\/td>\n<\/tr>\n<tr>\n<td>StP LGA<\/td>\n<td>$73,554,056<\/td>\n<td>$62,600,018<\/td>\n<td>$57,569,445<\/td>\n<td>($15,984,611)<\/td>\n<td>-22%<\/td>\n<\/tr>\n<tr>\n<td>StP Levy<\/td>\n<td>$45,857,683<\/td>\n<td>$89,254,277<\/td>\n<td>$89,254,277<\/td>\n<td>$43,396,594<\/td>\n<td>95%<\/td>\n<\/tr>\n<tr>\n<td>Total LGA+Levy<\/td>\n<td>$119,411,739<\/td>\n<td>$151,854,295<\/td>\n<td>$146,823,722<\/td>\n<td>$27,411,983<\/td>\n<td>23%<\/td>\n<\/tr>\n<tr>\n<td>StP Population<\/td>\n<td>287,260<\/td>\n<td>288,055<\/td>\n<td>288,055<\/td>\n<td>795<\/td>\n<td>0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0Duluth&#8217;s LGA, with unallotment, dropped by one percent over the Pawlenty Administration, and supplies more of the city&#8217;s budget than the property tax levies &#8211; which rose 70% &#8211; do.\u00a0 Note that while Local Government Aid was virtually unchanged even <em>with <\/em>Pawlenty&#8217;s unallotment, and the loss of MVHC revnues had little effect given the city&#8217;s depressed housing values, property taxes went from about a third of the total LGA\/tax venue mix to a little less than half; the overall take rose by 15%, even though Duluth&#8217;s population shrank.<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>2002<\/td>\n<td>2009<\/td>\n<td>2009 with unallotment<\/td>\n<td>$ change<\/td>\n<td>% Change<\/td>\n<\/tr>\n<tr>\n<td>Duluth LGA<\/td>\n<td>$29,635,152<\/td>\n<td>$30,730,443<\/td>\n<td>$29,200,998<\/td>\n<td>($434,154)<\/td>\n<td>-1%<\/td>\n<\/tr>\n<tr>\n<td>Duluth Levy<\/td>\n<td>$9,062,723<\/td>\n<td>$15,437,590<\/td>\n<td>$15,437,590<\/td>\n<td>$6,374,867<\/td>\n<td>70%<\/td>\n<\/tr>\n<tr>\n<td>Total LGA+Levy<\/td>\n<td>$38,697,875<\/td>\n<td>$46,168,033<\/td>\n<td>$44,638,588<\/td>\n<td>$5,940,713<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>Duluth Population<\/td>\n<td>86,125<\/td>\n<td>85,220<\/td>\n<td>85,220<\/td>\n<td>(905)<\/td>\n<td>-1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>So let&#8217;s compare the state&#8217;s Big Three cities with the rest of the state.<\/p>\n<p>The population of Minneapolis, Saint Paul and Duluth grew by about a percent during the Pawlenty years, while all the rest of Minnesota&#8217;s cities grew by 8% &#8211; greater than the population of Saint Paul.\u00a0 The Big Three cities&#8217; state of the state&#8217;s population shrank by 1.2%, to just under 18% &#8211; less than one in five Minnesotans:<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>Populat6ion<\/td>\n<td>2002<\/td>\n<td>2009<\/td>\n<td>\u00a0<\/td>\n<td>Gross change<\/td>\n<td>% Change<\/td>\n<\/tr>\n<tr>\n<td>Big 3 Population<\/td>\n<td>755,831<\/td>\n<td>763,406<\/td>\n<td>\u00a0<\/td>\n<td>7,575<\/td>\n<td>1%<\/td>\n<\/tr>\n<tr>\n<td>Total city Pop<\/td>\n<td>3,993,198<\/td>\n<td>4,315,637<\/td>\n<td>\u00a0<\/td>\n<td>322,439<\/td>\n<td>8%<\/td>\n<\/tr>\n<tr>\n<td>Big 3 % of Pop<\/td>\n<td>18.9%<\/td>\n<td>17.7%<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0But how do the finances break out?<\/p>\n<p>The big three, <em>even with <\/em>a 22% post-unallotment cut, get a third of the state&#8217;s Local Government Aid &#8211; double the population&#8217;s proportion of the revenues:<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>Big 3 LGA<\/td>\n<td>$214,756,351<\/td>\n<td>$182,116,872<\/td>\n<td>$167,020,414<\/td>\n<td>($47,735,937)<\/td>\n<td>-22%<\/td>\n<\/tr>\n<tr>\n<td>All others LGA<\/td>\n<td>$350,234,601<\/td>\n<td>$344,024,675<\/td>\n<td>$314,501,519<\/td>\n<td>($35,733,082)<\/td>\n<td>-10%<\/td>\n<\/tr>\n<tr>\n<td>Big 3 % of LGA<\/td>\n<td>38.0%<\/td>\n<td>34.6%<\/td>\n<td>34.7%<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Divided up by resident, this means that residents of the Big Three get, even after the unallotment cuts, two and a half times as much Local Government Aid per-capita than the rest of the state&#8217;s cities.<\/p>\n<table border=\"0\">\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>2002<\/td>\n<td>2009<\/td>\n<td>2009 ost unallotment<\/td>\n<td>Change<\/td>\n<td>%change<\/td>\n<\/tr>\n<tr>\n<td>Big 3 per capita LGA<\/td>\n<td>$284.13<\/td>\n<td>$238.56<\/td>\n<td>$218.78<\/td>\n<td>($65)<\/td>\n<td>-23%<\/td>\n<\/tr>\n<tr>\n<td>All others LGA per capita<\/td>\n<td>$10.19<\/td>\n<td>$96.85<\/td>\n<td>$88.54<\/td>\n<td>($20)<\/td>\n<td>-18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And the Big Three&#8217;s property tax revenue hikes &#8211; 93%, \u00a0almost $164 million over the Pawlenty years &#8211; <strong>outstripped their net LGA cuts (almost $48 million) by 3.4 to 1.<\/strong>\u00a0<\/p>\n<p>What does this mean?<\/p>\n<p><strong>The Hikes Beat The Cuts<\/strong>: While the DFL caterwauls endlessly about the damage the cuts in LGA did, the hikes in property taxes statewide outstripped the LGA cuts by <strong>7.5 to 1<em>.<\/em><\/strong>\u00a0\u00a0 Without unallotment, that would have been closer to <strong>16 to 1.\u00a0 <\/strong>Bear in mind that this is money that goes to government &#8211; not merely to maintain it but to grow it &#8211; as opposed to anything useful, like growing our private sector or putting your kids through college.<\/p>\n<p><strong>Pay Your Own Way?\u00a0 <\/strong>While Local Government Aid was originally intended to subsidize smaller, poorer governments in outstate Minnesota, so that their schools and infrastructures could compete with those of the once-wealthy Twin Cities, that&#8217;s been totally stood on its head during the past generation.\u00a0 Minneaopolis, Saint Paul and Duluth get 2.5 times as much Local Government Aid per capita than the state&#8217;s smaller cities.<\/p>\n<p>Why?<\/p>\n<p>Because the Big Three cities are basket cases after generations of unfettered DFL control.<\/p>\n<p>The DFL would have you believe there&#8217;s no alternative.<\/p>\n<p>We&#8217;ll look into that on Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are a little over five million Minnesotans.\u00a0 About 4.3 million of them live in &#8220;cities&#8221; of widely-varying sizes and government types, from plucky Montevideo up to metropolitan Minneapolis, from conservative Mound to neo-Wobbly Duluth. These cities have a few things in common.\u00a0 They levy property taxes to pay part of their municipal bills &#8211; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[108,144],"tags":[154],"class_list":["post-11081","post","type-post","status-publish","format-standard","hentry","category-chanting-points-memo","category-governor","tag-pawlenty"],"_links":{"self":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/11081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11081"}],"version-history":[{"count":8,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/11081\/revisions"}],"predecessor-version":[{"id":22544,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/11081\/revisions\/22544"}],"wp:attachment":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11081"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}