Pawlenty’s budget ax to hit schools, property tax payers, renters
By: Linda Higgins Senator District 58 08/01/2009
Recently Gov. Pawlenty held a press conference to announce how he plans to use his unallotment powers to cut and shift about $2.7 billion out of the state's budget. For Minneapolis residents already facing tough times in our current recession, the plan spelled more bad news:
Higher property taxes: The governor has proposed reducing state aid to Minneapolis by $30 million, and to Hennepin County by more than $24 million. To fill this hole, local leaders will have no choice but to either raise property taxes on local residents or cut services, such as police and fire protection, snowplowing or road maintenance.
A tax increase on low-income renters: Pawlenty has proposed cutting the state renters' credit by about $51 million a year. Minneapolis is home to the state's largest rental community, and thousands of low-income families in our city depend on the renter's credit to make ends meet. For these renters-half of whom survive on less than $20,000 a year-this cut represents a direct tax increase.
Cuts to Minneapolis schools: Pawlenty's plan includes a $1.8 billion education funding shift, which will force school districts to borrow or spend reserves to bridge the gap. According to research from the Association of Metropolitan School Districts, this could cost the Minneapolis Public School District about $1 million in borrowing costs or lost interest.
I am deeply troubled by the governor's decision to adopt a go-it-alone strategy and the effect his unallotment plan will have on Minneapolis residents. Once again, Gov. Pawlenty has put forward a budget-balancing plan that relies on cost shifts, property tax increases, and cuts to programs that serve our most vulnerable populations.
Linda Higgins
Senator, District 58