Area officials react to Ventura address

By FRITZ BUSCH &

KURT NESBITT

Journal Staff Writers

City, county

concerned about potential loss of government aid

NEW ULM -- Area government officials reacted in various ways to Thursday night's State of the State address by Gov. Jesse Ventura.

Ventura said that if state legislators don't deal with the projected $1.95 billion budget deficit, he would use his executive powers to deal with it when the session starts Jan. 29.

In times of fiscal crisis, the governor can cut the budget without legislative approval, according to state law. Ventura said the remedy could include spending cuts and tax increases.

Potential increases include gas and cigarettes taxes and extending the state sales tax to clothing and now-exempt services.

State aid to local governments appears likely to be cut. It could force local governments to cut services, use reserve funds and/or raise property taxes.

Ventura is expected to reveal a detailed budget-balancing plan Thursday.

New Ulm City Manager Brian Gramentz said it would be tough to cut taxes evenly for all, but he hopes the plan is as fair as it can be.

"I'm a proponent of it being fair for all, but whatever they do, it won't be. But, we have to do something," Gramentz said. "It wouldn't be good if they just cut local government aid (LGA) and not transportation funds. Everything must be in the mix."

Greater Minnesota communities would be hard hit by LGA cuts while Twin Cities suburbs would not, because they don't get any LGA, Gramentz said.

Municipal budget reserve money is a state deficit funding source Ventura has mentioned.

Gramentz said it would be important to use current figures, not two-year-old figures, which are the latest available.

Springfield City Manager Mac Tilberg said proper planning prevents poor performance but he said the blame for the state budget deficit and financial "roller coaster ride" shouldn't fall only on Ventura.

Since its population is under 2,500, Springfield is not subject to tax levy limits.

Minnesota's financial problems are minor compared to some states, he said.

With no LGA, Nebraska taxes residential property at two to three times the Minnesota rate, Tilberg said.

He's hoping for a positive legislative session.

"If it gets rhetorical, things will just get worse," Tilberg said. "I'm praying for leadership and guidance. If that doesn't happen, we should be able to get salvation at the voting booth."

Sleepy Eye City Manager Mark Kober said he was more interested in finding out what the actual cuts were before commenting on the issues.

Brown County Commissioner Andrew Lochner said the county will be forced to raise its portion of property taxes in order to pay for state-mandated programs, if state aid money dries up.

"We've got no place to go if we run short on state aid," he said from his home in Sleepy Eye Friday night.

Brown County Administrator Charles Enter said the county's board of commissioners "certainly will be alert to the governor's suggestions made to the legislature" and will work with the Association of Minnesota Counties to determine how any change in state aid will affect the county.

In the 2002 budget, passed shortly before the new year, Brown County has about $1.4 million in certified state tax aids and another $10 million in state and federal aid.

Minnesota taxpayers can voice their opinions about the state budget on interactive, online public policy forums from Monday, Jan. 7 through Friday, Jan. 18.

Participants can post their own suggestions or review other's comments at http://issuetalk.state.mn.us

The site is sponsored by Minnesota Planning, a state agency that develops long-range plans, stimulates public participation in the state's future and coordinates activities at all government levels.