Laserfiche WebLink
IALBERT H. QUIE <br /> <br /> GOVERNOR <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />i <br />I <br />I <br />I <br />I <br />I <br />I <br />! <br /> <br />STATE' OF 51INNESOTA <br /> <br />ST. PAUL ~1~ <br /> <br /> August 21, 1981 <br /> <br />The Honorable Thomas G. Gamec <br />Mayor, City of Ramsey <br />1513 Nowthen Boulevard Northwest <br />Ramsey, Minnesota 55303 <br /> <br />During the legislative session you were kind eno.ugh to write and share <br />your thoughts on the subject of placing a limit on increases in amounts <br />which can be raised through property taxes. I want you to know your <br />input was appreciated at that time and I would now like to review the <br />history of my proposals on the li'mTt, and explain ~hat was finally <br />incorporated into law and how the law may affect both. the homeowners of <br />a community and their local government representatives. <br /> <br />You will remember that, although I had given my bu.d~et message tn <br />January, in April I revised my recommendation. In the April message 1 <br />announced several changes in what ! had proposed in January. In <br />January--based on forecasts of revenues expected to be received by the <br />State--I did not foresee a need to increase the State income and sales <br />taxes. But by April it had become clear that the amount of expected <br />revenues would fall short of the forecasted amount by some $460 mill~on,- <br />We all understand only too well that this shortfall is the result of a <br />general decline in the econo~ly. In any case, it became clear that <br />either we were going to have to cut State spendtng or increase State <br />taxes to equal the amount of revenues expected~to be received, <br /> <br />Raising. State taxes at a time when most people ore hav~ng to stKuggle <br />to keep up with their expenses could result in a serious hardship for <br />our State's citizens. To avoid havl.ng to substantially'increase taxes, <br />in April I made several proposals to the L~9islature which ! had not <br />found necessary to make in January, <br /> <br />One of these proposals was to place a limit on the amount of funds <br />local governments Would be permitted to raise through property taxes, <br />AlthOugh increases (n the general levy had been l i'~!ted s!nce '1971 to <br />six percent and later eight percent, there had been no limit on s.~ec!al <br />levy increases. Wh~t I proposed in April was to l~mit Increases' in <br />the general and special levies to no more than eight percent of t~e <br />previous year's amount of general and special lev!es, <br /> <br />I AN EQUAL OPPORTUNITY EMPLOYER .~., <br /> <br /> <br />