Counterpoint

In the space of several days, the Star Tribune published a piece on people's desperation regarding their property taxes ("City dreams buckle under taxes' weight," Feb. 13), and Gov. Mark Dayton proposed a budget that did not cut aids to local governments.

These two things are tightly connected, and the governor's budget gives hope to desperate property taxpayers.

We are at the beginning of a new day for Minnesotans tired of watching their services decline and their property taxes increase.

Because Dayton has boldly placed his stake in the ground regarding property taxes, we have an invitation to gather together and have the real conversation needed about how we choose to provide services in Minnesota.

"Local government aid" is a misnomer. It isn't "aid" in the traditional sense.

Rather, it's a redistribution of tax dollars to equalize differences in property tax capacity among cities.

As part of the Minnesota Miracle in the early 1970s, cities agreed to forego local sales and income taxes -- agreeing to cede collection to the state -- in return for a redistribution of some of those dollars to cities so that every community, regardless of tax base, could have excellent services like police protection and safe roads.

The idea was that we all do well when we all do well, and in the years those agreements were maintained, it worked as intended.

But since 2003 the state has continued to collect revenue generated in Minnesota cities while cutting the amount it redistributes by 27 percent. That has real consequences.

Other than LGA, property taxes are what cities use to fund critical services that affect people every day: Police service. Fire service. Road repair and maintenance. Snow removal.

Cities have not come close to making up the difference in their budgets.

In Minneapolis, for example, the city and its independent boards have cut more than 1,000 positions in the last 10 years. For every dollar cut in state redistribution, it has levied back only 66 cents.

In his budget, Dayton made it clear that cutting "aids" to local governments would be a tax increase for Minnesotans, and he'd rather collect those revenues from more equitable sources. I applaud him for that forward thinking.

Forced property tax increases are not a good way to manage the state's budget deficit.

Organizations all over Minnesota have been preparing for this conversation, including the League of Minnesota Cities, on whose board I sit.

This spring the league will convene a series of conversations around the state talking to residents about city services and the best way to fund them.

How should state and local governments come together to provide police service? Fire service? Road repair? Snow plowing? You can participate in that conversation.

We have endured more than 10 years of forced property tax increases by the state.

This year is the perfect opportunity for us all to begin anew -- legislators, municipal officials and, especially, taxpaying residents -- to think big-picture about who we are as a people and how we choose to come together.

LGA is a tool. If something else works better, great.

Frankly, Minneapolis would be fine if we completely unwound the Minnesota Miracle, because it is a net contributor to the state. Simply put, Minneapolis puts more into the state than it gets back in return.

But, as a Minnesotan, I want something that works for every community, including those with smaller tax bases -- because every Minnesotan, from Alexandria to Rochester to Worthington, deserves the basic services we all depend on.

Betsy Hodges is a member of the Minneapolis City Council.