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HomeMy WebLinkAbout2A, Discussion with Senator Barb Goodwin & State Rep Kate Knuth2S.RZEN HILLS Request for Council Action A Prepared By: Patrick Klaers, City Administrator Council Meeting Date: January 19, 2011 Discussion with State Senator Barb Goodwin and State Representative Kate Knuth Budgeted Amount: NA Actual Amount: NA Funding Source: NA Recommendation: Informational only. No action required. Supporting Documents: 1. Electoral and biographical information regarding Senator Goodwin and Representative Knuth. Senator Barb J. Goodwin (DFL) District 50 Senator Barb J. Goodwin (DFL) District 50 District 50 Demographic Details View District Map Committees Back to Top Finance e Judiciary and Public Safety State Government Innovation and Veterans Special Legislative Concerns Back to Top Jobs, budget, consumers, health care Biographical Details Back to Top Prefers interim mail at this address. tCompiled by the Legislative Reference Library. Capitol Office: 100 Rev. Dr. Martin Luther King Jr. Blvd. State Office Building, Room 123 St. Paul, MN 55155 -1206 651.296.4334 Email Address: sen.barb.goodwin @senate.mn Click photo for larger image Current Biennium: Committees Legislative Service Special Legislative Concerns Biographical Details Visit Senator Goodwin's legislative history during previous bienniums in the Minnesota Senators Past and Present Database t Legislative Service Back to Top Elected: to the House 2000, re- elected 2002, 2004; to the Senate 2010 Term: 1st Home: Columbia Heights 650 Sullivan Lane NE 55421 763.574.1716 Family: Married, Spouse David, 3 children. Occupation: Legislator Education: BA, Hamline University Page 1 of 1 http /www.senate.leg.state.mn.us /members /member bio.php ?district =50 1/5/2011 Barb Goodwin Wikipedia, the free encyclopedia Barb Goodwin From Wikipedia, the free encyclopedia Barb Goodwin (born January 1949) is a Minnesota politician, the senator -elect for Minnesota Senate District 50, and a former member of the Minnesota House of Representatives representing District 50A, which includes portions of Anoka and Ramsey counties in the northern Twin Cities metropolitan area. She is also an educator and member of the Columbia Heights School Board. Goodwin served as a state representative from 2001 to 2007. While serving in the House, she specialized in state budget issues, consumer protections, homeowner construction and repair protections, jobs, education, health care and business and labor issues. She also supported expanded transit options. Goodwin has been serving on the Columbia Heights School Boardr since November, 2009 and as Adjunct Professor at the Hamline University Graduate School of Business in St. Paul since 2008, teaching Legislative Practice and Government Contracting. [2] Goodwin attended North Hennepin Community College in Brooklyn Park, Minnesota, then went on to Hamline University in St. Paul, Minnesota, receiving her B.A. with numerous honors in Sociology and Political Science. On June 1, 2010, Goodwin filed as a DFL candidate for the Minnesota Senate representing District 50. The district includes the cities of Arden Hills, Columbia Heights, Fridley, Hilltop, New Brighton, Shoreview and St. Anthony and is divided between Anoka and Ramsey Counties. On June 28, 2010, the district committee voted to revoke the endorsement from embattled incumbent Senator Satveer Chaudhary and grant it to her. She defeated Chaudhary in the August 10, 2010, DFL Primary, garnering 70% of the vote to Chaudhary's 30%. She subsequently won the November 2, 2010, General Election, garnering 52% to Republican Gina Bauman's 41% and Independent Rae Hart Anderson's 6 http://en.wikipedia.org/wiki/Barb_Goodwin Barb Goodwin Minnesota Senate District 50 Senator -elect Taking office January 3, 2011 Succeeding Satveer Chaudhary Member of the Minnesota House of Representatives from the 50A district In office 2001-2007 Preceded by Satveer Chaudhary Succeeded by Carolyn Laine Born January 1949 Minneapolis, Minnesota Political party Minnesota Democratic-Farmer- Labor Party Children 2 Residence Columbia Heights, Minnesota Alma mater North Hennepin Community College Hamline University Humphrey Institute Profession educator, legislator Website http: /www.barbgoodwin.com Page 1 of 1 Goodwin and her husband David have been married for 40 years, have two married adult children, are raising a 13 year -old great- nephew, and have recently become grandparents. They live in Columbia Heights. 1/5/2011 j t gym,. x Jxi liv �iZ i N 1S NIW. BA,/ 1N: li3N� v,A F4 I�4 ARSHA1.L iT N� 2?il£t NVA Kate Knuth (DFL) 50B Minnesota House of Representatives Re resentative Kate Knuth DFL District: 50B Biographical Information Prefers interim mail at this address. 323 State Office Building 100 Rev. Dr. Martin Luther King Jr. Blvd. Saint Paul, Minnesota 55155 651 296 -0141 E -mail: rep.kate,knuthOhouse,mn Join my e-mail updates list for announcements. Legislative Assistant: Peter Strohmeier 651- 296 -5069 :ommittee Assignments (Unofficial) Environment. Enerav and Natural Resources Policy and Finance Rules and Legislative Administration Taxes Home: New Brighton 2347 14th Terrace N.W., 55112; 651 697 -7029 Occupation: Environmental educator Education: B.A., biology /philosophy, University of Chicago; M.Sc., biodiversity conservation and management, Oxford University Elected: 2006 Term: 3rd Page 1 of 1 http: /vwvw. house leg state .mn.us /members /members.asp ?id =15273 1/5/2011 Kate Knuth Wikipedia, the free encyclopedia Kate Knuth From Wikipedia, the free encyclopedia Katherine "Kate" Knuth (born May 15, 1981) is a Minnesota politician and a member of the Minnesota House of Representatives, representing District 50B, which includes portions of the cities of New Brighton, Arden Hills, Fridley and Shoreview in Anoka and Ramsey counties, which are part of the Twin Cities metropolitan area. Knuth, a Democrat, was first elected in 2006 and was one of the youngest representatives to serve in the 85th Legislature. She won the seat vacated by retiring Rep. Char Samuelson. [2] In the legislature, many of her authored bills have dealt with improvements to infrastructure. She was re- elected in 2008 and 2010. Knuth has degrees from the University of Chicago and Oxford University, and was on a Fulbright Scholarship to the University of Oslo. Her father, Daniel Knuth, served in the Minnesota House for three terms from 1983 1989. Electoral history 2006 Race for Minnesota State House District 5OBE Kate Knuth (Democratic Farmer- Labor) 9025 (53.67 Lori Grivna (Republican) 7769 votes (46.20 Born 2008 Race for Minnesota State House District 50BE Kate Knuth (Democratic Farmer- Labor) 11,966 (57 Lori Grivna (Republican) 9183 votes (43 2010 Race for Minnesota State House District 5OBE Kate Knuth (Democratic- Farmer- Labor) 8455 (52.4 Russ Bertsch (Republican) 7667 votes (47.51 References Kate Knuth Page 1 of 1 Member of the Minnesota House of Representatives from the 50B district Incumbent Assumed office 2007 Preceded by Char Samuelson Political party Residence Alma mater Profession Religion 1. A a b "Minnesota Legislators Past Present Legislator Record Knuth, Katherine" (http: /www. leg. state. mn. us /legdb /fulldetail.asp ?ID 15273) Leg.state.mn.us. http://www.leg.state.mn.us/legdb/fulldetail.asp?ID=15273. Retrieved 2010- 07 -20. May 15, 1981 New Brighton, Minnesota Minnesota Democratic- Farmer- Labor Party New Brighton, Minnesota University of Oslo University of Chicago Oxford University educator, legislator Covenant http: /en.wikipedia.org /wiki /Kate_Knuth 1/5/2011 1 ST, ST W PATROL RD tOUNTY..r.AD-1.W t i Rd MOBL[ RD ipE LAKt LN S, ail f, t i N1< RfiPk N S{ l •4 V Arden Ci• 1� '�i jyr��% �E�itliv�CE�' 1 •'q�,\ 7. �*`•.F ti t!) dry 3 f i s `a i j. PKY Sle L'1 COUNTY ROAD F r (3fs s--i v? i Cs; GREY SOX R3 s House District Water Cities and Towns Counties This map shows the Legislative Districts ordered by the Minnesota Supreme Court Special Redistricting Panel in the matter of Zachman v. Kiffmeyer, case C0 -01 -160 on March 19, 2002. Base data and features used in these plans are derived from the 2000 TIGER files prepared by the U.S. Census Bureau. Cities Blletin Newsletter Issue Home Minnesota Cities The League Risk. Management Legislative Action Center Training Conferences Marketplace Careers Member Forums Search the site Governing Managing Resource Library Issues Trends Inquiries Assistance Other LMC Programs Services etfyF,. Archive of Previous Issues Jobs Download /print a pelf oflt ar ticles to th is issue faVISStr For legislative questions: Contact IGR..Staff For editorial or other Bulletin questions: Contact Claudia Hoffacker Jobs with LMC Wanted/For Sale/RFP Announcements in the LMC Marketplace Weekly 4M Fund Rates (Minnesota Municipal Money Market Fund) For a free subscription: Contact Keiile Sundheim Communications Coordinator ksundheim @lmc.org (include name, title, city, and e- mail address for each Cities Bulletin subscriber). 2011 Legislative Session: New Players, Same Game The 2011 legislative session brings many new players to address some of the same challenges, including balancing the state budget. Read more .4(44044 Cttiti****,1,1,', ',?3,* 15- Minute Advocate: Get Informed, Take Action, Stay Involved As a new session gets underway, look to The 15 Minute Advocate for ideas on how to get involved. Read more Federal Bill Proposes New Pension Reports Controversial pension reporting rules include penalty of loss of federal tax exemption on state and local bonds. Read more. 4•41 7 1 111 411111 Deadline Approaching for Local Government Innovation Award Nominations New Webinar on State Deed Reform New Year, New Codification Resources ARRA Update: Fund Recipient Reports Due Jan. 10 2010 Census: First Data Release Help Your City Avoid Land Use Lawsuits Ti9-1, tttllj9-*itaqVZ-4,4,f: Upcoming League Events Online Training /E- Learning Co- Sponsored Events Events Sponsored by Other Organizations http: /www.lmc.org /page /1/ cities bulletin- newsletter.jsp[1 /5 /2011 11:27:54 AM] 2011 Leadership Conference Newly Elected Officials Jan. 7- 8— Nisswa Jan. 28- 29- Mankato Feb. 25 -26— Brooklyn Center 2011 Leadership Conference for Experienced Officials Jan. 7- 8— Nisswa Jan. 28 -29- Mankato Feb. 25 -26- Brooklyn Center 2011 Safety Control itorlshops '"Mtttfl8tE,E:'Aprfft91i14ocoiorps League Business Partners and Business Associates provide valuable financial support to the League and help; support our mission to serve Minnesota cities. View LMC Sponsors The Cities Bulletin is published weekly during the legislative session and biweekly during the interim. 2011 Legislative Session: New Players, Same Game Page 1 of 3 2011 Legislative Session: New Players, Same Game The 2011 legislative session brings many new players to address some of the same challenges, including balancing the state budget. (Published Jan 5, 2011) The Minnesota Legislature convened on Jan. 4 for the state's 87th legislative session. While the session brings many new faces, some of the topics affecting cities will sound very familiar. New governor For the first time since Gov. Rudy Perpich was elected in 1986, a Democrat will occupy the southwest corner of the first floor of the Capitol. One of the first chores of Gov. Mark Dayton will be to complete the appointment of his new cabinet of department commissioners. As of Jan. 3, he has named eight commissioners; press reports indicate that several more will be named by Jan. 7. New majorities and new leaders The 2011 Legislature includes 141 returning members and 60 new members, including six who previously served in the Legislature and two who moved from the House to the Senate. Several new and re- elected legislators arrive at the Capitol with municipal backgrounds. Republicans now have majorities in both the House and the Senate. That means new leaders have been selected in both houses. Read related article about the new majority and minority leaders (Link to: http://www.lmc.org/page/ 1/Leadership jsp) Read related article about legislators with municipal backgrounds (Link to: http://www.lmc.org/page/1/20111egislatorsfsp) :AGUE of NNESOTA CITIES New committee structure The new Republican leadership announced a smaller committee structure that more closely aligns the House and the Senate committees. The House will have a total of 24 committees and divisions, down from a total of 36 committees and divisions during the 2009 and 2010 sessions. The Senate will have a total of 16 committees, down from 28 committees and divisions during the 2009 and 2010 sessions. See the list of House committees (Link to: http: /www. house. leg. state .mn.us /comm /commemlist.asp) See the list of Senate committees (Link to: http:/ /www. senate. leg. state.mn.us committees /index.php ?ls #header) Topics to watch There will be many issues at the Capitol this session that will impact cities. Here are just a few of the major issues to watch: State budget. The primary goal of the 2011 session will be to craft a state budget for the upcoming state 2012 -2013 biennium, which begins on July 1, 2011. The budget discussions will be dominated by the state's projected $6.2 billion deficit. Gov. Dayton is required by state law to submit a proposed budget to the Legislature no later than the third Tuesday in February, which this year will be Feb. 15. http://wvvw.lmc.org/page/l/newsession.jsp 1/5/2011 2011 Legislative Session: New Players, Same Game Page 2 of 3 The Minnesota Department of Management and Budget will update the official state budget forecast in late February or early March and that forecast will become the final official projections of revenues and expenditures upon which the final state budget will be based. Republican leaders have stressed that they will balance the deficit without raising taxes. Gov. Dayton indicated during his campaign that he favors a tax increase on the wealthiest Minnesotans as a part of his proposal to balance the state budget. The final budget solution will almost certainly impact all areas of the state budget. Government reform and mandate relief. Government redesign to increase efficiency and accountability has been on everyone's plate since way before Election Day. Bills will likely be introduced to reduce government regulation, and mandate relief will be a topic of discussion once again. Policymakers will want to pay close attention to the newly released report by the Commission on Service Innovation for ideas on changes to state and local government service delivery. Elections. The League will propose an earlier deadline for in- person absentee voting (or enactment of an early voting process) as well as authority for cities to consolidate polling places. The League will also seek a repeal of the law that prohibits election judges from being within six feet of vote tabulating equipment at the polls on Election Day. In addition, as the Legislature takes up state redistricting, the League will urge that cities with wards that hold local elections in odd numbered years be allowed to redistrict wards in 2012 or 2013 to avoid the need to redraw ward boundaries again after the Legislature is redistricted. Broadband. By Feb. 1, the Minnesota State Broadband Advisory Task Force will report to the Legislature its continued support of state broadband goals, and point to benchmarks that the state needs to address to achieve them. The League supports action to encourage deployment of advanced broadband networks and high -speed capacity throughout the state; public /private collaboration and cooperation for last -mile connections; and removal of obstacles to local authority to provide for such facilities and infrastructure. The League also continues its strong support of local authority to franchise cable TV services, and opposes measures to shift that authority to state government. Transportation. Transportation funding may come through the legislative session relatively unscathed. While other committees wrangle to help resolve the $6.2 billion budget gap, most of the $5.8 billion transportation budget is from funds dedicated to roads, transit, and other transportation needs. Securing new state transportation funds may be difficult, even though transportation infrastructure investments are essential for economic development. The League will look for innovative ways, such as street improvement district authority, to partner with the state and private sector to advance local and regional projects. Economic development. Job creation will be a theme once again this year, as all caucuses and Gov. Dayton have made their pledge to see what the state can do in this area to put more people back to work. A jobs coalition is meeting again and is likely to release its package in early January. This group has been active the last two legislative sessions and is made up of a variety of business interests (architects, builders, unions, cities). A bonding bill could be part of this equation, although that is usually something that happens in the second year of the biennium. Land use and zoning. The Minnesota Supreme Court recently issued a decision that changed the longstanding interpretation of the statutory standard for cities to grant zoning variances. The League has worked over the interim with interested parties to develop a legislative fix to this problem that will http: /www.lmc.org /page /1 /newsession.jsp 1/5/2011 2011 Legislative Session: New Players, Same Game Page 3 of 3 restore local authority. The proposal will also make changes to both county and city statutes related to variance authority to eliminate as many differences between them as possible. This should reduce confusion for both property owners and local governments. Employment. Given the anticipated emphasis on reform and redesign, the League is assembling personnel mandate relief proposals. Changes in House and Senate leadership may provide opportunities for the League to advance longstanding policies related to the Minnesota Public Employment Labor Relations Act and other employment laws that impose costs on employers and impede local control. Taxes. With the severe state deficit, the House and Senate Taxes committees will likely be reviewing programs within their jurisdiction such as local government aid and county program aid not only for potential budget reductions but also for systemic reforms. In addition, the Taxes committees will almost certainly consider bills that will authorize local option sales taxes. The Taxes committees will also likely spend time discussing the 2008 and 2009 changes to the Green Acres law. The Green Acres Program provides property tax relief for owners of productive agricultural property in areas where the market value of land is being affected by development pressure, sales of recreational land, or other non agricultural factors. Under the 2008 and 2009 changes, the Legislature restricted the property that could qualify for the Green Acres property tax benefits to property classified as class 2a productive agricultural land. Rural vacant land (class 2b) can no longer qualify for the Green Acres tax benefits. As a result of these changes, many property owners have experienced significant increases in their property taxes. Can they finish on time? The Legislature must adjourn by the first Monday after the third Saturday in May, which this year is May 23. This year's adjournment date is the latest possible under the state Constitution, and many believe they will need every one of those days to finish their work. Read the current issue of the Cities Bulletin (Link to: http://www.lmc.org/pagea/cities-bulletin-newsletterjsp) Your LMC Resource Contact intergovernmental relations (IGR) staff if you have questions about legislative issues. Connect with IGR staff (Link to: http: /www.lmc.org /page /1 /IGR Staffjsp) Copyright ©2011 League of Minnesota Cities, 145 University Ave. W, Saint Paul, MN 55103 -2044 I Phone: (651) 281 -1200 I Toll -Free: (800) 925 -1122 http://www.lmc.org/page/l/newsession.jsp 1/5/2011 Cities Bulletin Newsletter £4GtJE M1NN ESO1A Resource Library Issues Trends Inquiries Assistance Other LMC Programs Services •,,Marketplace.1 Careers Member Forums Home Minnesota Cities The League Governing Managing Risk Management Legislative Action Center Training Conferences Print a Copy e „vb Download/print a pdf of all articles in this issue Proposed State Budget Resolution Could Hurt Cities The resolution, introduced by Rep. Mark Buesgens, could reduce state aid and credits to cities. Read more ettfr 1:€0 Upcoming League Events Online Training/E-Learning Co-Sponsored Events Events Sponsored by Other Organizations Forfeiture and Seizure Policy Required by March 1 City police departments and others must adopt a policy similar to the POST Board model policy. Read more. Bill to Restore City Variance Authority Has First Hearing Legislative fix needed to respond to state Supreme Court ruling. Read more http://www.lmc.org/page/1/cities-bulletin-newsletter.jsp[1/12/2011 1:42:06 PM] Cities, Services Funding: Apply Now to Host Community Conversations DEED Economic Development Grants Dept. of Health Forms Drinking Water Advisory Forum Understand Your Role and Authority in Land Use Regulation Conference for New City Officials—Register Soon for the Mankato Event Learn How to Deliver Tough Messages at the Leadership Conference for Experienced Officials Safety Loss Control Workshops Around Corner Senate Bill Focuses on Jobs The Senate's first bill of the session deals with the new Republican majority's approach to creating jobs. Read more Mandate Repeal Bill Introduced in the House A bill that would repeal several mandates for cities, counties, and school districts was introduced on Jan. 10. Read more State Revenue Collections Exceed Forecast The report presents a little good news about the state budget, but indicates economic recovery is still slow. Read more. League Proposes Changes to Election and Redistricting Laws League proposals would change the rules for absentee voting, consolidating polling places, and redrawing ward boundaries. Read more. Featured Events 2011 Leadership Conference for Newly Electecl Officials Jan. 7-8—Nisswa Jan. 28-29—Mankato Feb. 25-26—Brooklyn Center 2011 Leadership Conference for Experienced Officials Jan. 7-8—Nisswa Jan. 28-29—Mankato Feb. 25-26—Brooklyn Center 2011 Safety Loss Control Workshops March April-9 Locations Quick Links Archive of Previous Issues City Jobs Jobs with LMC Wanted/For Sale/RFP Announcements in the LMC Marketplace Weekly 4M Fund Rates (Minnesota Municipal Money Market Fund) League Business Partners and Business Associates provide valuable financial support to the League and help support our mission to serve Minnesota cities. View LMC Sponsors Contact Us 1 Subscrib The Cities Bulletin is published weekly during the legislative session and bi-weekly during the interim. For a free subscription: Contact Keine Sundheim Communications Coordinator ksundheim@imc.org (include name, title, city, and e mail address for each Cities Bulletin subscriber). For legislative questions: Contact IGR Staff For editorial or other Bulletin questions: Contact Claudia Hoffacker Bill to Restore City Variance Authority Has First Hearing Page 1 of 2 Bill to Restore City Variance Authority Has First Hearing Legislative fix needed to respond to state Supreme Court ruling. (Published Jan 12, 2011) The House Government Operations and Elections (Link to: http: /www.house. leg. state.mn.us /comm /committee.asp? comm 87009) committee held an initial hearing on HF 52 (Link to: htt s: /www.revisor.mn. ov /revisor a es /search status /status detail. h ?b= House& =HF52 &ssn =0& 2011 Rep. O ce Pe In J y Peppin to: (Link R— Rogers) on Jan. 11, the day after the bill was introduced. The legislation proposes changes to state law to restore municipal variance authority in response to a court decision from last year. A committee vote on the bill could occur as soon as next week, once interested parties have had an opportunity to evaluate the bill's language. In July of 2010, the Minnesota Supreme Court made a ruling in Krummenacher vs. City of Minnetonka related to municipal authority to grant variances to zoning ordinances. That opinion narrowly interpreted the definition of "undue hardship" and held that the "reasonable use" prong of the "undue hardship" test is not whether the proposed use is reasonable, but rather whether there is reasonable use in the absence of the variance. This is a much stricter standard and considerably limits variance opportunities. Read more about the ruling (Link to: http://www.lmc.org/page/1/variancerulingjsp) LEAGUE OF MINNESOTA CITIES The League coordinated the development of this legislative proposal over the interim and in the first days of the legislative session with a broad group of stakeholders including city attorneys, staff from other city associations, counties, townships, builders, realtors, chambers of commerce, land use attorneys, and many others. It has received broad and bi- partisan support, as many types of residential and business development, remodeling and redevelopment projects are unable to proceed until cities can consider variances in cases where the circumstances warrant them being granted. The bill has also been introduced in the Senate (SF 13 (Link to: https: www. revisor .mn.gov /revisor /pages /search_ status /status_detailphp ?b= Senate &f= SF0013 &ssn =0 &y =2011) Sen. Gen Olson (Link to: http /www.senate.leg.state.mn.us /members /member bio.php ?leg id= 10483) R— Minnestrista). Hearings are expected in the Senate early this session as well. Read the current issue of the Cities Bulletin (Link to: http: /www.lmc.org /page /1 /cities- bulletin- newsletterjsp) Your LMC Resource Contact Tom Grundhoefer General Counsel (651) 281 -1266 or (800) 925 -1122 tgrundho @lmc.org (Link to: mailto: tgrundho @lmc.org) http://www.lmc.org/page/l/variancepolicy.j sp 1/12/2011 Budget Resolution Introduced Page 1 of 2 Budget Resolution Introduced The resolution, introduced by Rep. Mark Buesgens, could reduce state aid and credits to cities. (Published Jan 12, 2011) Although the February state budget forecast will not be released for at least another six weeks and Gov. Dayton has not yet released his budget recommendations, Rep. Mark Buesgens (R Jordan) (Link to: http /www.house.leg.state.mn.us /members /members.asp ?id= 10081) on Jan. 10 introduced a resolution on the state's budget for the upcoming two -year period. Under House Resolution (HR) 2 (Link to: https: /www.revisor.mn.gov /revisor/ pages /search _status /status_detail.php? b= House &f= HR2 &ssn =0 &y =2011) state spending for fiscal year (FY) 2012 -2013 would be limited to the level of spending in FY 2010 -2011 (a total of $30.3 billion), and the state would reestablish a budget reserve of $653 million. That total spending figure for FY 2010 -2011 reflects reductions as a result of the shift of $1.9 billion in school aid payments, and the property tax levy recognition shifts. The state's receipt of $2.3 billion in federal stimulus funding was also booked as a reduction in state spending. Under current law, state spending is projected to increase to $38.6 billion, but that figure includes the current law repayment of the $1.4 billion in delayed school payments from the 2010 -2011 biennium. For local units of government and property taxpayers, the amount spent on property tax aids and credits is limited to $3.018 billion. Under current law, spending for that category is expected to rebound to $3.469 billion in FY 2012 -2013 because the 2010 Legislature made only a portion of the 2010 cuts permanent. For example, of the total city aid and credit reduction of roughly $180 million in 2010 (which are paid from the state's FY 2011 budget), $56.5 million per year was extended into the FY 2012 -2013 biennium. In summary, if the Legislature adopts a budget based on HR2, spending for the broad area of property tax aids and credits would have to be reduced by about an additional $450 million over the two -year budget cycle. The table below summarizes the possible reductions in the largest programs in the broad category of state expenditures titled "Property Tax Aids and Credits" if the legislature adopted a budget for FY2012- 2013 with the exact distribution of aids and credits after all reductions in FY 2010 -2011. EtZgatt 5, 4rd 1 j ptr fax ilftW Actual x 012 2 �1 3 .nditur Expenditures E� it 20,329 2 21' .2x DcSei 1H. Appiltd mkt! 2O O 2O1 MOM-) 6, AGU p MINNESOTA CITI ES Of course, under the resolution, the Legislature would need to meet only the restriction set for the broad category of spending over the two -year biennium and, therefore, the distribution of adjustments to http: /www.lmc.org /page /1 /budgetres- hr2.jsp 1/12/2011 Budget Resolution Introduced Page 2 of 2 programs within the category could be larger or smaller, or the adjustments could be deeper in the second year of the biennium. Even if the Legislature adjusted expenditures per the allocation in the table above, the allocation of adjustments to individual cities could be different than the 2010 -2011 cuts. Nonetheless, additional cuts of this relative magnitude would be deep. The local government aid (LGA) appropriation would be reduced by roughly $73 million per year, and the market value homestead credit (MVHC) reimbursement to cities, counties, and townships would be reduced by roughly $65 million per year. If the Legislature follows past practice, a budget resolution will not be adopted until after the February state budget forecast is released. That forecast will present the final projections of revenues and expenditures upon which the Legislature will craft its 2012 -2013 biennial budget. Read the current issue of the Cities Bulletin (Link to: http: /www.lmc.org /page /1 /cities bulletin- newsletterjsp) Your LMC Resource Contact Gary Carlson IGR Director (651) 281 -1255 or (800) 925 -1122 gcarlson @lmc.org (Link to: mailto:gcarlson @lmc.org) Copyright 02011 League of Minnesota Cities, 145 University Ave. W, Saint Paul, MN 55103 -20441 Phone: (651) 281 -12001 Toll -Free: (800) 925 -1122 http://wvvw.lmc.org/page/l/budgetres-hr2.jsp 1/12/2011