Friday, February 5, 2010

Why Are You Picking on Bemidji, Gov. Pawlenty?

A war of words between the City of Bemidji and Tim Pawlenty continued with more comments on the Governor's radio show Friday morning.

The exchange began last week when the Governor blasted Bemidji for raising the levy to offset the Governor's LGA cuts. The Mayor's response in The Pioneer and the Star Tribune corrected inaccuracies in Pawlenty's comments and explained the increase. But that didn't stop Pawlenty from going on the attack again today, complaining that "50% of the City's budget is from state aid."

Here are the facts from the City's Truth in Taxation Report:

Sources of funds: Taxes 32%, fines, licenses, interest 32%, State aid 36%
(There are more details and comparisons with other comparable cities in the report.)

I can't explain the LGA formula. I'm not sure who can. But I have always considered our role as a regional center as one reason that Bemidji should benefit from LGA. We serve the region as a government, healthcare, education and retail center. The negative side of that is that 43% of the property in the city is non-taxable. The positive side is that our community remits a lot of sales and income tax dollars to the state. LGA is one way the state compensates our community for our regional role.

Successful greater Minnesota communities like Bemidji are important assets for the state. In tough economic times the Governor should be supporting communities, not disparaging them.

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