Category archives
LGA

The House and Senate, purportedly in agreement with Gov. Dayton, passed a tax bill today that comes in around $648 million for the 2018-19 biennium. The bill includes a permanent $15 million increase in Local Government Aid. To see a preliminary estimate of how your city will do with this increase, click HERE for the CGMC’s updated LGA run.

We want to extend a sincere THANK YOU to everyone who responded to our numerous Action Alerts by contacting your legislators and the Governor about the need for an increase in LGA funding. We were hoping for a larger increase, and we will continue the fight, but it was thanks to your help that this final number is higher than previous proposals from both the House and Senate.
 
Here are links to the SPREADSHEET and BILL LANGUAGE for the tax bill.

Last night’s legislative deadline sailed by without action on several key bills, including the tax bill (which includes Local Government Aid funding). Governor Dayton immediately called a special session at 12:01 a.m. this morning, which means legislators are continuing their work to pass budget bills. There is still hope for an LGA increase, but we need your help!

Take action now!
If we are going to secure an LGA increase, it is imperative that you contact Governor Dayton, House Speaker Kurt Daudt and Senate Majority Leader Paul Gazelka by 3 p.m. TODAY. Tell them that the final tax bill must include a permanent $20 million increase in LGA per year over the next two years.

Contact info

Questions?
If you have any questions about LGA or the legislative session, please contact Bradley Peterson at bmpeterson@flaherty-hood.com or 651-259-1911.

With mere hours to go until tonight’s midnight deadline, the Minnesota Legislature is hard at work trying to negotiate and pass a state budget and other key pieces of legislation. At this point it appears we are likely headed for a short special session to complete the state budget.

Legislators were holed up in St. Paul over the weekend and managed to pass a few budget bills out of the House and Senate, including the environment and jobs bills. A number of bills are still on the agenda for today including taxes, transportation and bonding.

Since most of the negotiations have been going on behind closed doors – leaving the public, the media and lobbyists out of the legislative process — we have little indication of what will be included in the final bills.

If you have not done so already, now would be an excellent time to respond to this CGMC Action Alert by contacting your legislators and Gov. Dayton to urge them to include a significant increase in Local Government Aid in the final tax bill.

The environmental bill is one of the few bills that passed on Sunday and is now expected to be signed into law by the Governor. Unfortunately, due to continuing opposition from the Governor and the Minnesota Pollution Control Agency, many of the significant environmental reforms sought by the CGMC were stripped from the final bill, including our call for independent peer review of proposed rules and a prohibition against the enforcement of unadopted rules. On the plus side, the bill includes our request to extend the public comment period for new city permits to 60 days (up from 30 days) and also includes some policy changes regarding the Impaired Waters List.

As for the jobs bills, which passed early this morning and is also expected to be signed by the Governor, it contains several priorities that are important to rural communities:

  • The Job Training Incentive Program is funded at $2.7 million per biennium for 218-19 and 2020-21
  • The Border-to-Border Broadband Broadband Development Grant Program is funded at $20 million
  • A workforce housing grant program within the Minnesota Housing Finance Authority will receive $4 million per biennium for 2018-19 and 2020-21
  • The Greater Minnesota Business Development Public Infrastructure program (BDPI) gets $1 million for the 2018-19 biennium (excluding a $1.6 million earmark in FY 18) and approximately $3.6 million for the 2020-21 biennium. The BDPI program is funded in the proposed bonding bill as well.
  • The Minnesota Investment Fund is funded at $25 million per biennium for 2018-19 and 2020-21
  • The Job Creation Fund receives $17 million for the 2018-19 biennium and $16 million for the 2020-21 biennium

For updates as this final day of session proceeds, please follow us on Twitter (@greatermncities), Facebook and our website (greatermncities.org.)

Time’s almost up!

We are now entering the final days of the legislative session. As the clock winds down, Governor Dayton and legislative leaders remain deep into negotiations with little to show for it thus far. One of the major issues that remains in flux is the tax bill, which is the bill that deals with Local Government Aid.

Take action now!

If we are going to secure an LGA increase, it is absolutely imperative that you contact your legislator and the Governor TODAY. Tell them:

  • The final tax bill must include a $45.5 million increase in LGA.
  • LGA is the single most important tool cities have to hold down property taxes while still providing essential services.
  • With a $1.65 billion state budget surplus, they should easily be able to secure a $45.5 million increase in LGA — the amount needed to bring LGA back to its 2002 level.

Contact info

Questions?

If you have any questions about LGA or the legislative session, please contact Bradley Peterson at bmpeterson@flaherty-hood.com or 651-259-1911.

For Immediate Release: May 11, 2017
Contact: Julie Liew, jlliew@flaherty-hood.com

A PDF version of this press release is available here.

ST. PAUL—With the session deadline looming and little progress thus far on key legislative priorities for rural communities, Greater Minnesota city leaders held a press conference today to caution legislators against repeating last year’s failures on taxes, bonding and transportation.

“Exactly one year ago today, we held a press conference urging legislators to pass an increase in Local Government Aid, a fair and balanced bonding bill and a transportation bill that funds city streets and the Corridors of Commerce program,” said Sara Carlson, Mayor of Alexandria and President of the Coalition of Greater Minnesota Cities (CGMC). “Here we are 365 days later and we are still asking for the same things. What does it take for Greater Minnesota’s needs to be addressed?”

Carlson said that rural Minnesota voters sent a strong message in the November election that their needs and concerns had been ignored for too long. At the start of the session, many city leaders were hopeful that Greater Minnesota issues would get more attention this year since rural legislators make up the majority of the Republican caucus in both the House and Senate. However, with less than two weeks left in the session, serious questions remain about the Legislature’s willingness to invest in rural priorities.

At the top of that list is an increase in Local Government Aid (LGA), the state program that provides property tax relief and allows cities of all sizes to have a similar level of services regardless of their wealth. Nearly 96 percent of Greater Minnesota cities, and 89 percent of cities statewide, receive LGA.

The CGMC is seeking a permanent $45.5 million increase in LGA funding, the amount needed to bring the program back to its 2002 level. The joint House and Senate tax bill doesn’t come close to this benchmark — it includes just a $6 million one-time increase for 2018. Under the bill, LGA would revert back to the 2017 funding level the following year.

“The Legislature’s tax bill fails on LGA,” Carlson said. “No state program does more to improve the quality of life and economic competitiveness of Greater Minnesota communities than LGA. I am perplexed as to why our legislators are not investing more into the program.”

Carlson noted that Gov. Dayton has already pledged to veto the tax bill, a decision the CGMC supports. “The Governor should demand a significant and permanent LGA increase in the final tax bill,” she said.

City leaders are also united in their support for a bonding bill this session. For Greater Minnesota cities, the most critical item in this bill is additional money for grant and loan programs that provide funding for wastewater infrastructure.

There is broad bipartisan support for this funding: the Governor’s bonding proposal includes $167 million, while the Senate bill has $133 million and the House bill has $105 million. However, with vastly different ideas about the overall size of the bonding bill — the House bill totals only $600 million, while the Governor’s plan is nearly $1.5 billion — passing a bill could be difficult.

“We cannot wait another year for a bonding bill,” said Austin City Administrator Craig Clark.  “Like many cities in Greater Minnesota, we are facing massive costs to repair and upgrade our water treatment facilities. If we don’t receive more financial help, cities have no choice but to pass those costs onto our residents and businesses.”

Another long-standing area of concern is transportation. Although city officials want the state to invest more in transportation — particularly city streets and the Corridors of Commerce program — they cautioned the Legislature and Governor against relying too heavily on the general fund.

“Taking too much general fund money for transportation could have a harmful effect on other important priorities like LGA, education and public safety,” said Granite Falls Mayor Dave Smiglewski. “A smart transportation plan that looks out for the long-term success of our state should include a mix of new revenue along with a modest amount of general fund dollars.”

In the waning days of session, the city leaders said they plan to be in frequent contact with their local legislators and other key lawmakers to encourage them to take action on key Greater Minnesota priorities.

“No one wants a repeat of last year,” Smiglewski said, referring to the last-minute failure of several key bills. “Luckily, there is still time for our legislators to make this session a ‘win’ for Greater Minnesota.”

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For Immediate Release: May 4, 2017
Contact: Julie Liew, jlliew@flaherty-hood.com

A PDF version of this press release is available here.

ST. PAUL—City leaders in Greater Minnesota are voicing frustration with their legislators this week after the Tax Conference Committee unveiled a tax bill proposal that fails to adequately invest in rural communities.

The tax plan, released Monday night by the joint House and Senate conference committee, includes a meager $6 million increase in Local Government Aid (LGA) funding for 2018. Because it is just a one-time, one-year increase, LGA would revert back to its current funding level in 2019. City leaders argue this low amount does little to address their cities’ growing needs and is especially unacceptable given the state’s current solid financial footing.

“Greater Minnesota is once again left out and left behind in the tax bill,” said Sara Carlson, mayor of Alexandria and president of the Coalition of Greater Minnesota Cities (CGMC). “With a $1.65 billion budget surplus and in the context of a $1.15 billion tax plan, the Legislature can and should do better for LGA.”

An LGA increase is the number one priority for the CGMC this legislative session. The organization is advocating for a $45.5 million increase for the 2018-19 biennium, the amount needed to bring the program back to its 2002 funding level. Since the Legislature has not passed an LGA increase in the past two years, the token $6 million bump in this year’s conference committee tax proposal would not even begin to cover a basic inflationary increase.

“Rural Minnesotans and Greater Minnesota cities should be and will be upset if this LGA situation is not rectified,” Carlson said. “LGA is essential to keeping our communities healthy and our property taxes down. With just over two weeks left in session, now is the time to speak up and let our legislators know that LGA is too important to be ignored. Before the session ends, the Legislature and Governor must come to an agreement on a significant permanent increase.”

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The Tax Conference Committee unveiled its tax proposal yesterday, and it looks dismal for Local Government Aid.

The bill includes only a $6 million one-time, one-year increase in 2018 and no increase for 2019. This is far below the $45.5 million increase in base funding that is needed to bring LGA back the 2002 level (not even accounting for inflation). This LGA run shows an estimate of how much LGA your city would receive under the conference committee’s proposal, as well as under the other various legislative proposals.

As the Legislature and Governor begin negotiations, now is the time to speak up for your city! With a $1.65 billion state budget surplus and a tax bill that spends $1.15 billion, legislators need to know that their tax bill is simply unacceptable on LGA.

Take action now!

As a Greater Minnesota city leader, it is important that you:

  • Contact your senator and representative as soon as possible and urge them to insist that the tax bill includes a permanent and ongoing $45.5 million increase.
  • Contact Gov. Dayton to thank him for his support for LGA and urge him to continue to fight for more LGA funding in his negotiations with House and Senate leaders.

Contact info

Questions?

If you have any questions about LGA or the legislative session, please contact Bradley Peterson at bmpeterson@flaherty-hood.com or 651-259-1911.

This Local Government Aid (LGA) run projects how much LGA each city will receive in 2018 and 2019 if there is no change to the current law and under the various proposals being considered at the Legislature: the Tax Conference Committee report, Governor Dayton’s plan and the CGMC’s proposal.

There are only a few weeks left in the legislative session, but lawmakers are still far from reaching agreements on top issues like LGA, bonding, transportation, workforce housing and environmental regulatory reform. It’s apparent that we need to make an extra push in these remaining days of session to demand that legislators take action to address the needs and concerns of Greater Minnesota communities. To relay this message, we are asking all Greater Minnesota city officials and community leaders to join us for a special CGMC Lobby Day and Ice cream on Thursday, May 11.

The tentative schedule for the day is as follows:

  • 10 a.m. – Legislative status update and messaging (Room 500 South in the State Office Building, located across the street from the State Capitol)
  • 11 a.m. – Press Conference on Greater Minnesota issues (State Capitol Press Conference Room B971)
  • Afternoon – Meetings with legislators (attendees should make appointments with their own legislators; we may also ask some attendees to participate in additional meetings with key legislators)
  • 2-3 p.m. – Ice cream social with legislators and legislative staff (tentatively scheduled to be held in the basement of the State Capitol)

Lobby Day is FREE to attend, but we ask that you RSVP to RSVP@flaherty-hood.com by Tuesday, May 9. Free parking is available at the Flaherty & Hood office located at 525 Park St. in St. Paul, just one block from the State Capitol.

We hope to get as many city officials to attend as possible! Please share this Lobby Day Flyer and encourage other city officials and staff to join us.

If you have any questions, please contact Julie Liew at jlliew@flaherty-hood.com or 651-259-1917.

The Legislature’s Easter/Passover break begins this weekend and lasts until April 18. Since many legislators head back to their home districts during the break, it is an ideal time to touch in with them and make your voices heard!

As the House and Senate prepare for conference committees and negotiations during the final seven weeks of the legislative session, it is critical that Greater Minnesota city leaders continue to speak up. Let your legislators know that CGMC priorities are important to your community and that you expect them to fight for these priorities to be included in the final deals.

Please take the following actions as soon as you can:

1. Pass a resolution urging the Legislature and Governor to return LGA to its 2002 level. See this sample resolution that you can customize to your own city’s circumstances. In addition to the decision-makers named at the bottom of the resolution, also send a copy to CGMC staff member Shane Zahrt at sazahrt@flaherty-hood.com. We will keep a running list of cities that pass a resolution.

2. Meet with your legislators. Call your senator’s and representative’s office this week to set up a meeting with them during the legislative break. If you are unable to meet in person, schedule a phone meeting instead. You can find contact info for your legislators here.  Please address the following topics during the meeting:

  • The Legislature and Governor must pass a tax bill this year that includes an LGA increase of $45.5 million. Despite significant growth in the state’s budget since 2002, LGA still lags behind. LGA plays an important role in restraining property taxes and helping cities provide important services to residents and businesses.
  • The Legislature and Governor must agree on a bonding bill that funds critical infrastructure across the state. With the failure to agree on a bonding bill last year, work on critical infrastructure has been stalled. The CGMC strongly supports $167 million for clean water infrastructure grant and loan programs, as well as $15 million for the Greater Minnesota Business Development Public Infrastructure (BDPI) Grant Program that helps pay for the public infrastructure needed for private business growth.
  • Fund city streets. The CGMC strongly supports $50 million in funding for city streets, with $25 million for cities with populations under 5,000 and $25 million for cities with populations over 5,000.
  • Pass at least $200 million a year in funding for the Corridors of Commerce program with cash as well as bond proceeds. Corridors of Commerce helps fund expansion of critical interregional corridors whose bottlenecks inhibit the flow of goods and services important to the economy of the whole state.

If you have any questions about these action items, CGMC priorities or the legislative session, please contact CGMC Executive Director Bradley Peterson at bmpeterson@flaherty-hood.com or 651-259-1911.