LGA Rally

1
LGA Rally Message
2
State Deficit 2010 - 2011

• Revenue 31,283,000,000
• Spending 35,856,000,000
• Deficit 4,570,000,000
• Without Federal Funds 6,393,000,000
• 2012 2013 Deficit 5,360,000,000

3
House 2010 2011

• Revenue
• 1.8 B K-12 shift (one-time)
• 1.5 B taxes/revenue
• Expenditures
• 1.6 B cuts
• 843 M cuts after federal funds (one-time)
• Holds Early Ed., K-12, Higher Ed. at current
  levels

4
Senate 2010 - 2011

• Revenues
• 2 B taxes/revenues
• Expenditures
• 2.4 B cuts
• 7 in every finance area
• 1.6 - 1.8 B after federal funds (one-time)

5
Governor 2010 - 2011

• Revenue
• 1.3 B K-12 shifts (one-time)
• 983 B bonding (one-time)
• 822 M from Health Care Access Fund (permanent)
• 815 M federal funds (one-time)
• Expenditures
• 700 M cuts (overall)
• Increases K-12, Ag Veterans

6
House 2012 - 2013

• Revenue
• 1.4 B additional taxes/revenue over increase in
  2010 2011
• 148 M K-12 shift (one-time)
• Expenditures
• 2.1 B in cuts
• Holds Early Ed. K-12 harmless

7
Senate 2012 - 2013

• Revenue
• 300 M (expected growth from new taxes from
  2010-2011)
• Expenditures
• 2.67 B cuts
• 7 across every finance area

8
Governor 2012 2013?

• Revenue
• 809 M Heath Care Access Fund (same as 2010-2011)
• 147 K-12 shift (one-time)
• Expenditures (two scenarios)

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Expenditures Scenario 1

• Press Conference
• Balance budget 2012-2013
• 1.4 increase K-12
• 12 increase debt service
• 19 cut aids and credits
• 26 cut Health and Human Services
• 6 cut State Government
• 11 cut overall

10
Expenditures Scenario 2

• MN Office of Budget and Management
• 2.6 billion deficit
• 1.4 increase K-12
• 12 increase debt service
• 16 cut in aids and credits
• 7 cut in Health and Human services
• No change State Government
• 4 cut overall

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3 Budget Proposals (LGA)

• Gov.
• 15 reduction in aids and credits
• 15 cut in LGA in 2009, 31 cut in 2010
• House
• 7 reduction in all aids and credits
• LGA unknown
• Senate
• 7 reduction in all aids and credits
• LGA unknown

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House Senate to Decide LGA Cuts

• House must cut 250 M in aids and credits
• Property tax division report (Monday)
• Full tax committee
• Floor
• Senate must cut 240 M in aids and credits
• Full tax committee
• Floor

13
Senate (Bakk)

• Sen. Bakk would like to freeze LGA at 2009
  appropriation
• Lose 2 increase 2010, 4 increase 2011
• 42 M cut in 2010 2011

14
Marquart Bill (House)

• 100 M cut in County Program Aid
• Option for ½-cent sales tax
• Sales tax equalized through greater reductions in
  CPA
• Cities with sales tax must be paid by counties
  (no rate increase)
• Leaves 150 - 125 M to be cut in aids and
  credits (lower LGA cuts?)

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Rally Message

• Protect LGA, Protect Jobs Residents
• LGA provides valuable services in our communities
• Cutting LGA cuts jobs and services

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Legislative Message

• Protect LGA, Protect Jobs Residents
• LGA provides jobs and services needed in our
  community
• Cutting LGA will cut jobs
• No cut in 2009
• Cities are making December 2008 unallotment cuts
  in 2009
• Freeze LGA at 2009 appropriation
• Saves the state 42 million from 2010 to 2011

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Governor Myths to Combat

• Only 5
• 5 of levy aid for 2009
• 4 of levy aid in December of 2008
• 10.5 of levy aid for 2010
• 31 cut of LGA for 2010
• Cities have big reserves
• Need 35-50, says state auditor
• Cant spend special funds