2 counties want Legislature to stop shifting costs

With a $1.2 billion state budget deficit looming in Minnesota, two east metro counties want the Legislature to stop the flow of "unfunded mandates" to county taxpayers.

The state government's shifting of costs to local governments has angered Ramsey and Washington county commissioners, who represent a combined three-quarter million residents. The counties also want bonding money from the state to pay for transportation and public works projects that would create jobs.

"Much of what county government does in Minnesota is mandated by state laws and rules," said Jim Schug, chief administrator in Washington County. "If our state funding is cut, there should be commensurate cuts in programs that are mandated so that it doesn't result in a shift from the state tax to a property tax."

Mandates apply to all areas of county government such as veterans assistance, community probation, property records, elections, county road maintenance and paying to house state courts. Almost all social service programs are mandated.

In 2006, the property tax levy paid 42 percent of the Washington County budget. This year, it's grown to half. Meanwhile, state and federal revenue to the county declined 7 percent since 2006 to 19 percent this year.

In Ramsey County, property taxes financed 36 percent of the budget in 2000. That proportion is expected to grow to 45 percent this year. But since 2000, state revenue to Ramsey County fell 10 percent.

Now, county leaders are looking ahead.

With few exceptions, counties haven't succeeded in reversing the taxation tide. Last year, they won repeal of a mandate that required housing short-term state prisoners in county jails at largely county expense.

Addressing county concerns in any bonding year -- when the Legislature concentrates on revenue and spending matters -- can be difficult, but this year could be more so because of the steep state budget deficit.

"It's going to be short and intense," said John Kaul, Washington County's legislative liaison. "Nobody who's alive at the session now has ever experienced problems this enormous."

Of great concern to the counties is the fate of the General Assistance Medical Care (GAMC) program, which covers 33,000 low-income Minnesotans. Gov. Tim Pawlenty vetoed funding for the program last year. It's scheduled to end in March.

"More and more we're unable to provide important services," Carter said. "If GAMC goes away, costs go up across the board from hospitals to law enforcement. If we fund GAMC in a way that robs other parts of the safety net, it's a Catch-22. I don't know what the solutions are."

To create more jobs, Ramsey and Washington counties hope the Legislature will fund several bonding project requests:

• $8.5 million for the Union Depot to match $50 million in federal funding to help renovate the old building. County officials view the depot as a regional transit hub.

• $5 million for a new interchange at Rice Street and Hwy. 36. The $25 million project will accommodate the expansion of nearby businesses; $20 million has already been found.

• $20 million for Gillette Children's Specialty Healthcare to design, build and furnish an expansion and renovation of the pediatric hospital.

• $15 million in state bonding to buy land and design a park-and-ride transit center along I-94 in Woodbury.

• $3.6 million for three years of commuter bus service between Hastings and the Twin Cities, with a stop in Newport.