Councilors, lawmakers meet on state aid cuts

Meeting does little to ease frustration

By RON LARSEN

Journal Staff Writer

NEW ULM--The long-awaited meeting between the City Council and the state legislators who represent the community Friday morning concerning the state-mandated cut in local government aid for New Ulm produced some barbed comments and questions from councilors but little to ease their frustration.

"Can you brainstorm for us what the road map will be in dealing with the (city) budget (for 2004)?" Mayor Joel Albrecht asked. "Can you guarantee that we won't be looking at larger cuts?"

"You're not the only ones struggling with budgets. We certainly had a difficult time in the Legislature. The largest increase (to be dealt with) was in health care and social services. In one sense, we're all in this together," said Sen. Dennis Frederickson, R-New Ulm.

"What happens in February will be determined by the national economy. The only area we'll be working on is capital funding, but we'll probably be going back into the budget to make some changes. My advice is to watch globally and act locally."

"The major issue is health care; that area still is growing," Rep. Brad Finstad, R-New Ulm, said. "The governor has said that he'd be interested in looking at LGA based on the November forecast, if there is improvement there."

"Well, then, is revenue sharing being phased out?" Albrecht asked.

"I don't see LGA being phased out. There may be changes. I see levy limits being phased out. I don't think the state needs to limit levies," Frederickson replied.

Although he was home in New Ulm for the birth of his daughter, Finstad said he would have had a hard time voting for the bill which was backed by the Coalition of Greater Minnesota Cities and called for greatly reduced cuts in LGA and the transfer of funds from the transit funding bill to LGA.

"That bill you wanted me to vote for would have washed out Comfrey, and it never would have been passed because of the transit funding cut. It didn't have legs."

"While it may not have legs, as you term it, I'm concerned that the decisions were made by a small group of people for political purposes. Our concern is that we don't have a rural, small-town coalition that can stand up to the metro area," Councilor Ruth Ann Webster said.

"Can you work with Democrats and outstate communities to get a lower LGA cut?" Council President Dan Beranek asked.

"It (the reduction in cuts that was enacted) happened because we were working with other legislators. The (Coalition) proposal got less than 20 votes, as I recall, in the Senate," Frederickson replied.

"I must be frank that I was looking for stronger leadership from you," Councilor Ron Fleischmann told the lawmakers. "My concern is that we don't forget who put us in. To me, there's a real unfairness issue."

"I think, for most legislators, protecting education and health care services were more important than putting money with LGA," Frederickson said.

"What do we need to tell you so you can be better advocates for us in St. Paul? What do you need from us?" Webster asked.

"(City Manager) Brian Gramentz provided us with good information this year. I live in this community, and I've served on the Senate Finance Committee for 21 years. I feel like I know pretty much what the needs are," Frederickson replied.

The discussion then turned to the 60-percent "levy-back" that the city can use to recoup some of the lost LGA funds in its 2004 budget.

"I'm inclined not to vote for it because I don't want to increase taxes, but I don't want to be told by legislators that I should," Councilor Clark Tuttle said.

"You will not hear me criticize the council for the decisions it makes," Frederickson replied.

"I'm not sure I want to be a part of a trend that makes my elderly neighbors pay more (property taxes)," Webster added.

"(If there is relief,) I believe it will be directed toward protecting the lower, fixed income people. I don't want to see the elderly taxed out of their homes, either," Frederickson said.

"Are you saying that if we levy the 60 percent that you'd protect the elderly with rebates?" Webster asked.

"Yes, that's what I'm saying. But I'm only one of 201."

Then, the lawmakers were asked if legislators agreed with State Auditor Patricia Awada's interpretation of cities' essential services.

"I know a lot of legislators took a step back and didn't necessarily agree," Finstad said.

Then, Finstad asked why, in talking with the mayors of Sleepy Eye and Springfield, "They told me that while the cuts were large, their cities would manage and get by, and New Ulm's situation seems to be different?"

"Maybe New Ulm is more forward looking and provides services to a larger area than those other communities," Beranek responded.

"Just look at what those communities are doing in development and growth," Albrecht added.

It was noted another reason could be that the citizens of New Ulm demand more.

"Our government has always been citizen-driven," Beranek explained.

"There's never been a proposal in my 11 years on the council that was generated by the council; it's been from the citizens," Albrecht affirmed.