Pioneer Press 5/21/09
Governor tells mayors to be realistic about cuts, give him ideas for reductions
By Bill Salisbury bsalisbury@pioneerpress.com
Updated: 05/21/2009 09:44:37 PM CDT
Gov. Tim Pawlenty wants mayors to stop complaining about state aid cuts and start telling him how large a reduction they can handle.
Starting July 1, Pawlenty will cut or delay $2.7 billion in spending over the next two years to balance the state budget.
During a press briefing at the Capitol on Thursday, Pawlenty said he would consult with local government officials, health care providers, legislators and other "stakeholders" to get suggestions on where and how much he can cut. He wants mayors to tell him what portion of their budgets they can trim.
"The answer can't be they're not going to take any cuts, because everybody else is," he said.
When families, businesses, churches and charities are all tightening their belts, he said, "to have cities come forward and say, 'We can't take any cut at all' is hogwash.
"Instead of just whining and complaining, they need to figure out how they can reduce their spending by a few percent. I don't think that's unreasonable."
Also Thursday, the governor vetoed the tax bill approved by Democratic lawmakers in the final minutes of the legislative session that would have raised $1 billion through taxes on couples making more than $250,000, alcohol drinkers and credit card companies charging high interest rates. It also would have delayed $1.7 billion in payments to schools, erasing a two-year deficit.
Pawlenty had warned Democrats that he would veto tax increases that reached his desk.
The governor's comments on cities' finances appeared to be aimed at St. Paul Mayor Chris Coleman and several outstate mayors who have been vocal critics of his local government aid reductions.
On Thursday, Coleman and a group of local officials held news conferences in Mankato, Albert Lea and Rochester to urge Pawlenty to minimize cuts to cities. They will continue their press tour today with stops in St. Paul, Willmar and Alexandria.
Before the Legislature adjourned Monday, Pawlenty had proposed a $450 million cut in local government aid and related programs. Mayors asserted that cutting that much would force them to lay off cops, firefighters and other essential personnel and increase their property tax levies.
Before they take such drastic actions, Pawlenty said, they should answer four questions:
Does your city have budget reserves? "If you've got a rainy-day fund, use it," he said.
Where's the property tax money? Most cities have raised their property tax levies every year, Pawlenty said. "Where is that money going?" he asked.
Has employee pay been frozen? "People across Minnesota should demand that school districts, counties and cities freeze salaries for their employees for the next two years," he said.
And what have local officials done to downsize and streamline operations?
In addition to reducing state aid to local governments, Pawlenty said he expects to cut spending on health and social services, higher education and state agencies.
He hopes to preserve funding for veterans and military programs, public safety and preschool-through-high-school education, although he said he plans to delay state aid payments to schools.
This report contains information from the Associated Press.
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