May 7, 2003 -- NEWS RELEASE -- State Representative Al Juhnke
rep.al.juhnke@house.mn
281 State Office Building, St. Paul, MN 55155
651/296-6206
3951 Horizon Hills Circle, Willmar, MN 56201
320/235-4442
GOP'S TAX BILL HIKES PROPERTY TAXES BY OVER $500 MILLION
Property taxes will rise by more than half a billion dollars statewide under a Republican-designed Tax Bill passed by the Minnesota House of Representatives Wednesday, according to Rep. Al Juhnke.
The same bill also cuts state aid to local governments by more than $320 million over the next two years, including a $1.9 million cut to the City of Willmar, Juhnke added. Counties and townships would also suffer aid losses along with cities.
"This bill shreds the Republican claim to be balancing the state budget without raising taxes," Juhnke, who voted against the measure, said. "And it's not simply property taxes that are going
up. There's a lot of hidden increases in the bill - such as making aspirin or aspirin-substitutes subject to the sales tax, or repealing the sales tax exemption on used farm-equipment tires."
The bill incorporates Gov. Tim Pawlenty's overhaul of the formulas for local government aid. That will cost most area cities at least 25% of their state aid next year. Willmar would lose almost 40%.
"Again, we have to look at what those dollars represent," Juhnke said. "In Rural Minnesota, they represent cops on the street, fire protection and ambulance services, asphalt to fill potholes, parks and recreation programs for young people. Taking this money away means taking away all the things we use and rely on that the money pays for."
Juhnke said most rural legislators supported a bi-partisan amendment that would have replaced the governor's aid formula with a plan that redistributed cuts more evenly across the state. Under the governor's plan, most suburbs take relatively small cuts in proportion to the huge percentage cuts hitting Greater Minnesota cities. The proposal was voted down, with most of the 'no' votes coming from suburban Republican lawmakers - but 17 rural Republicans voted against their districts and put politics before policy, Juhnke noted.
"The governor makes speeches about 'sharing the pain' but it's pretty clear that Rural Minnesota is bearing a bigger share of that pain than the metro area," Juhnke said.
