Guest column: Budget still main source of concern
Published 12:00 am Saturday, March 15, 2003
A top concern in our area is the state’s budget deficit and Gov. Pawlenty’s proposals to solve it. This is the strong message I’m getting from nearly everyone I’ve talked with in the past few weeks.
After holding town meetings in Austin, Alden, Albert Lea and Adams, I’ve heard many times over that people are very worried about the effects that the governor’s budget will have on our communities and our quality of life in southern Minnesota. We’ve had some open and lively discussions about the budget issues facing our state and have heard many points of view. I know that what I have learned will be very useful to me as we legislators put together our own budget proposals.
The governor’s proposed 22 percent cut to the state’s local government aid (LGA) program is the issue on which I have heard the most concern. LGA provides state help to the state’s core cities and cities in Greater Minnesota. Under the governor’s budget, our area is hit disproportionately hard. There is real concern that cutting the state aid our cities receive will mean deep cuts into programs that will result in a substantial lowering of our quality of life.
Input from citizens in our area is especially crucial in forming the discussion legislators will have regarding these cuts in the coming weeks. I want to thank everyone who has taken the time to attend my town hall meetings or to contact me personally about the state budget situation. I assure you I will be communicating your concerns as the budget debate moves forward.
Another issue that is receiving much attention is the creation of Job Opportunity Building Zone (JOBZ). Under this proposal, up to 10 tax-free zones would be created throughout the state, with a maximum size of 5,000 acres each and up to five agricultural processing facility zones to encourage job growth. Businesses within these zones would not pay income, property and some sales taxes, and would remain tax-free for 12 years. One of the original concerns when this bill first was introduced was that it would pit one community against neighboring cities and counties. Recently some modifications have been made to encourage cooperation among cities and counties and to allow the development of economic development plans on a more regional basis. In its original form, the bill provided for 20-acre minimum size zones. The modified bill now sets no minimum size.
Some opponents of the bill have expressed concern that the zones might be unfair to existing businesses, and argue that a more direct economic stimulus is preferable. Also, some are concerned about the fiscal impact to the already financially-strapped state. The tax-free zones would cost Minnesota about $4.6 million in lost taxes in fiscal years 2004-2005, and about $9.6 million in fiscal years 2006-2007.
So far, nearly all of the discussion of this proposal has taken place in the House of Representatives, and the Senate will be dealing with it later in the session. If you have thoughts or opinions on this idea, I am interested in hearing from you.
One of the bills I am authoring this year, S.F. 344, received its first Senate hearing last week. The bill could save the state up to $250 million by providing oversight, accountability, cost control and competition in the use of outside consultants and contracts for professional and technical services.
My bill is partly a response to a study performed by the legislative auditor that found many inadequacies in how state agencies have handled professional and technical contracting. In addition to not following state statutes and guidelines in several cases, the auditor found that state agencies often do not seriously seek state employees to perform contract work. Private contractors have been charging the state up to $100 an hour, when public employees earning $17 an hour could have performed the same job. The bill passed the State and Local Government Operations Committee and will be heard next by the Judiciary Committee. You can find out more about S.F. 344 at www.senate.leg.state.mn.us/committee/2003-2004/State/update.htm.
As always, I appreciate hearing from you. I can be reached at G-24 State Capitol, 75 Dr. Martin Luther King Jr., Blvd., St. Paul, MN 551555, or by phone at my Capitol office at (651) 296-9248.
Sen. Dan Sparks, DFL-Austin, represents District 27, consisting of Freeborn and Mower counties and part of Fillmore County in the Minnesota Senate.