CCP 12-17-2001 - Laserfiche WebLink

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e e e ~ ....., :!-LJOL f2 '''" ,I' -~ r;yI/ll)'cC:: I LMC r..".." 0/ M;nnuol4 CU;.. G,;.. pn>m06ng .,.,.11.""" ities flG.~_/lA wf -+ lIe tin Number 33 November 21,2001 2001 LMC Policy Adoption Conference Commissioners discuss property taxes, state budget shorifall Cary Carlson and Jennifer O'Rourke Tax reform, cultural diversity, the state's economic futurel and tax increment financing were topics included in the agenda of the League's Policy Adoption Conference held Nov. 16 in St. Paul, The morning began with presen- tations by Department of Finance Commissioner Pam Wheelock and Department of Revenue Commis- sioner Matt Smith. Their joint presentation, appropriately entitled "Tax and Consequences," included a discussion of the state of property tax reform and the state's fiscal health. Conunissioner Wheelock concen- trated her discussion on the state's and the nation's economic outlook. She reminded city officials that the state's economy was showing signs of weak- ness long before the tragic events of September 11. Wheelock indicated that state officials were assessing the possibility of a budget shortfall even before the June ending to the 2001 legislative session. Although Wheelock pointed ont that the Ventura administration had insisted legislators recognize the potential of future budget risks by LMC Legislative Priorities for 2002 FF-5 LE- 29 FF-1 FF-2 LE-1 LE-15 FF-17 SD-2 FF-7 LE-26 LE-10 LE-ll SD-14 SD-1S SD-28 Sales. Tax on Local Government Purchases Road Funding for Cities Under 5,000 State-Local Fiscal Relations State Shared Revenues Growth Management and Annexation Tax Increment Financing (T1F) Levy Limits Unfunded Mandates Truth-in- Taxation Process Adequate Funding for Transportation Municipal Telecommunications Authority State Telecorrununications Policy Environmental Protection Sale of Lawn Fertilizers Containing Phosphorus Youth Access to Alcohol & Tobacco VJlatch for the January 2002 issue if Minnesota Cities magazine for more coverage cif the upcoming legislative session. leaving more than $200 million in state revenues unspent at the end of the session, she was quick to publicly acknowledged the efforts of previous governors and legislative leadership to stabilize the state's budget by establishing and supporting the state's cash-flow account and rainy day fund. Wheelock told attendees that the neA'1: official state budget forecast could show a significant deficit. Speculation at the Capitol and in the media has suggested the deficit could be in the $500 million to $1 billion range. The official state budget forecast will be unveiled in early December. In the event of a future state budget shortfall, Wheelock said that no state appropriation would be sacrosanct. E:x.-penses for the actual operation of the state and state agencies only account for about 12 percent of the state's annual spending. The other 88 percent is largely grouped into four broad spending areas, including health and human services, higher education, property tax aids and credits, and K-12 education-the largest single piece of the state budget. In bet, "ith the actions of the 2001 Legislature, K-12 spending alone will account for nearly 40 percent of total state spending by fiscal year 2003. See PAC Conference, page 3