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Friday, March 7, 2008

Levelling the playng field

Star Tribune Thu, 06 Mar 2008 18:30:13 GMT
Bill calls for $90 million increase in state aid to cities

State aid to cities would increase by $90 million under legislation that has won support from large and small communities as a way to reduce local property taxes on homeowners and businesses. The biggest winners would be cities with more than 5,000 people that have a relatively high number of jobs but a low property tax base. Wealthier bedroom communities with less employment could see a decrease in the aid that they expected for 2009. State aid to cities has been a major issue in Minnesota since cutbacks in 2003 effectively shifted more of the expense of local government onto property taxpayers or prompted cities to cut services. There are 854 cities eligible to receive the state aid. "We know this solution is not perfect," Louis Jambois, executive director of the Association of Metropolitan Municipalities said at a legislative hearing Thursday. "But we think it's a very significant improvement."

[[keywords: Officials;PropertyTax;Metro;]]

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