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April 22, <br /> <br />TO: <br /> <br />FROM: <br /> <br /> 1981 <br />Mayors, Managers, Clerks, Legislative Contacts <br />Donald Slater, Executive Director <br />Peggy Flicker, Legislative Counsel <br />Revised Governor's Budget - New 8% Levy Limit Proposal <br /> <br />league of minnesota oiCies <br /> <br /> ~ eec ,~ <br /> <br />INTRODUCTION <br /> ' ' ' · . - -~ ....~ in a -itched battle over taxe~, services <br /> he te ls/a~ure are now un~:~=u r . the <br />The Governor and t ~ . -~ .... .~n,+nn~e v. are faring very poorly in will <br />and programs, and bu~g? ~uts; .~,~,.~-~ tl~e Governor and DFL leaders <br />infighting over the ~uoget cms~s. ~- :vv: .... <br />accept the proposed shifts of state aid payment schedules which will cost cities an <br />estimated $15 million over the biennium. It also ~eems likely that local government aid <br />will not,be increased. . 'limit. <br /> ~ f <br />Most dis{urbing o all is the Governor's proposal for a new, more restrictive levy <br />Do not assume that the proposal w~ll not be seriously considered, despite its drastic <br />)licattons. Revenue Con~nissioner Clyde'Allen argues the new levy limit is needed to <br />-tail increased demand for homestead credit payments because of property tax increases <br />necessitated by the proposed shifts and stabilization of state aid payments. Instead of <br />proposing further direct restrictions on the homestead, credit, the Governor intends to <br />restrict cities' ability to tax. <br /> The seriousness of this proposal cannot be underestimated. Even though the DFL made a <br /> counter proposal regarding the taxation and budget crisis, this proposed new levy limit <br /> was not mentioned. Moreover, the Governor has completely rever~e~ hi~.po~ition_? t~e <br /> levy limit. The problem is compounded because the DFL has traditionallY tavoreo ~evy <br /> limits. The proposal handsa politically hot issue to the DFL and dares them to be the <br /> The danger is that this p~rt of: <br /> ones to "allow" significant property tax.increases. .opposition of:responsible <br /> the GoVernor's proposal could be approve~, even over the .. . . . <br /> local officials. .' <br /> The League Board of Directors held an e~ergency meeting on April 20, inviting a number <br /> of city officials from throughout the state to review with them the Governor's new levy <br /> ...... · -~- Officials unanimously c~n-.. <br /> limit prgposal and asse~s !~ ?ten~!~.1?~s~u~j~or cities, and enthus]~st,caHy <br /> he ro osa/ will nave ummnuum · ·" · "and this -roposal ~n <br /> cluded that t p P , -~,-- *^ ~--- l~mts ~n 9enera~ v . <br /> reaffirmed the League's oppos~un ~u ,:-~ . <br /> particular. <br /> <br />building. 480 cE <br /> <br /> (OVER) <br />street, saint paul. minnesota 55101 [612) 222-2861 <br /> <br /> <br />