Governor Dayton stands up for homeowners, holds the line on property taxes

Governor Mark Dayton today released his proposed budget for the 2011-13 biennium. In my nine years as mayor, this is the first time that a governor has delivered a budget that helps hold the line on property taxes. Governor Dayton inherited a fiscal mess that was made far worse for the middle class by years of the State’s passing the buck onto local businesses and homeowners. In proposing no more crippling cuts to Local Government Aid, Governor Dayton has drawn the line.

It’s a refreshing change to have a governor who recognizes the importance of keeping people safe at home and on the street, and recognizes that homeowners have borne too much of that burden.

Business owners, homeowners and anyone who pays property taxes should help Governor Dayton pass this balanced, responsible budget.

Here are some quick, helpful facts about the Local Government Aid and the City of Minneapolis budget:

  • Since 2002, Local Government Aid to City of Minneapolis has been cut a total $290 million, including $54 million in last three years.
  • Burden of paying for basic services (public safety, public works) has shifted onto property taxes.
    • In 2003, State Aids comprised 40% of Minneapolis’ General Fund revenue while property taxes provided 29% of the revenue. 
    • In 2010, State Aid comprised just 23% of General Fund revenue (based on certified LGA) while property taxes provided 43%.
  • Burden of paying property taxes has shifted dramatically onto homeowners due to State law changes, decline in commercial property values.
    • In 2001, Minneapolis homeowners paid 33% of all City property taxes collected.
    • In 2011, homeowners will pay 56% of all City property taxes collected.
  • City of Minneapolis spending is 12% less, after adjusting for inflation, than 10 years ago.
  • Cost of providing public safety in Minneapolis in 2011 ($195 million) is more than all City property taxes collected ($168 million.)
  • City of Minneapolis has 10% fewer full-time positions than 10 years ago.
  • Since 2002, City of Minneapolis has paid down $130 million in debt, restored AAA credit rating.

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