Davids: DFL property tax math doesn’t add up

Property taxes increase four times more than lost Market Value Credit funding

ST. PAUL, January 12, 2012 – Minnesota House Tax Committee Chair Greg Davids, R-Preston, issued the following response today to the House DFL’s false property tax claims:

Only Democrats would see the loss of $90 million as the cause for a $400 million tax increase. Their math doesn’t add up and neither does their argument. It looks more to me like they’re exploiting it for politics than they are actually trying to find a solution.  Our solution, as it was during the 2011 legislative session, is to reduce and phaseout the statewide property tax on Commercial/Industrial properties.  Although they opposed it last year, I hope the DFL will now support such a measure if their words are born out of true concern and not just political rhetoric.

Representative Linda Runbeck, R-Circle Pines, Chair of the Property Tax Division, had this to say:

Local governments must be held accountable for their spending.  We eliminated a highly flawed program, an action supported by the League of Minnesota Cities and the Association of Minnesota Counties.  This was an act to allow for more transparency, and starts to shift the paradigm from property tax relief filtered through government to relief provided directly to the tax payer.  I am encouraged by the actions some local governments have taken to increase their efficiencies, whereas the DFL would prefer sending out blank checks.

Simple facts the DFL would like you to ignore:

• The proposed $413 million tax increase is more than four times the amount that cities and counties lost when the MVHC program was replaced. The final MVHC funding was $89 million, it seems highly suspect that losing it would result in a $413 million tax increase.
• In 2010, Representative Ann Lenczewski zeroed out the MVHC reimbursement for many suburbs, including just naming a few: Burnsville, Apple Valley, Inver Grove Heights, Bloomington, Edina, Coon Rapids, Blaine, and Woodbury. Again, this was done in 2010 - when Democrats ran the Legislature.
•  For as much as they claim to care about LGA and the former Market Value Credit, the DFL voted against, and Governor Dayton vetoed, a bill to keep LGA and MVHC reimbursements at the previous year’s levels.  This would have been the same aid amounts Democrats voted and approved when they were chairs.
• The DFL voted against, and Governor Dayton vetoed, a bill reducing and phasing out the Statewide Property Tax on Commercial/Industrial properties.  These properties are taxed once at the local level, and should not be punished twice on the same property by the state.

Their math doesn't add up, they voted against everything and they're attacking Republicans for continuing funding levels Democrats themselves set in place. It begs the question: Do Democrats truly care about property tax relief, or are they simply playing politics?

House Republicans last November released a new property tax relief package aimed at ending the statewide business property tax and providing tax relief directly to homeowners.

Seifert: Governor Steps in Where DFL Failed

ST. PAUL, June 16, 2009 -- House Republican Minority Leader Marty Seifert, R-Marshall, today commented on Governor Pawlenty’s announcement for unallotment targets, crediting the governor for doing what Democrats failed to accomplish during the 2009 session.

“Governor Pawlenty today did what Minnesota Democrats cannot: He made government live within its means. Unallotment is not anyone’s ideal solution, but it’s what the session came to when the other side proved they could not set priorities or embrace reform.

“Democrats who condemn the governor’s actions seem to forget they had more than five months to find a solution. Had they spent more time working with us on reforms and efficiencies, and less time in committees that produced no results, this day would have been avoided.”

Seifert also called out House Democrats for their apparent unwillingness to consider ways to partially restore the General Assistance Medical Care (GAMC) program after the governor’s line-item veto.

“Like the rest of the budget, Democrats walked away from their responsibility to find a reasonable solution. They were so uncooperative that even members of their own party couldn’t help but notice their unwillingness. That’s unfortunate because there is a genuine interest on our side to making this work. I think we could have found an agreement if they had been willing.”

Following the GAMC line-item veto, House Republicans made two attempts to partially restore funding:

• Republicans first tried to offer an amendment directing $100 million back into hospitals, but Democrats abruptly pulled the bill from consideration to prevent a vote.
• Two days later Democrats voted en masse to block an application for $215 million in federal funds to support GAMC.

Berglin interview link.

Key quotes from Senator Berglin, RE: working with House Democrats on finding any sort of post-veto GAMC solution:

“I was trying to get first the House and then my own caucus to try and agree on something like that and send it to them to save the second year of GAMC. And the House just--their attitude was, he said he would unallot; why should we make his cuts for him”

And later...

“But anyway the House didn’t want to do anything more and so we didn’t.”

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February 11, 2009: Managing Time and Resources - DFL Style

Upon the Rules Committee passing its proposed permanent rules to silence opposition, Majority Leader and Rules Committee Chair Tony Sertich issued the following comment:

“Our focus this session is on a short and long-term economic recovery for our state,” said Leader Sertich. “It is imperative that we manage our time and resources well as our state faces the worst economy since World War II.” (Ed. They managed their time so well that the final piece of their budget passed the House with 8 minutes remaining in the session.)

Let's have a look at how House Democrats have managed their time since the budget deficit was announced on December 4, 2008.
December 4, 2008: Forecast reveals $4.8 billion deficit; Democrats pledge “strong and decisive action”
January 6, 2009: Legislative session begins
Noon, January 12: Six weeks after pledging “strong and decisive action” Democrats announce that waiting for federal money is their top priority (Ed. Near the end of session, they would blame federal money for their inability to get anything done.)
3 p.m., January 12: Democrats unveil a spending proposal that would add $2.5 billion to the budget deficit – with no way to pay for it
January 20: 6 committee hearings are canceled while Democrats celebrate the Obama inauguration
January 29, 2009 House passes its first bill of the year
January 31, 2009: January ends with more than 30 committee hearings canceled; The State and Local Government Operations Reform, Technology and Elections Committee does not meet at all - not even once.

One week from tomorrow, Democrats will embark on the first of several "listening sessions" all around Minnesota. Using the Permanent House Rules to silence the opposing viewpoints of elected representatives does not reflect well on their professed desire to listen to the people of Minnesota.

February 18, 2009: The Latest Excuse for Inaction – Debunked

When Democrats choose to answer questions about why they have no budget plan of their own, their new talking point is that, unlike the governor, they don't have the time or resources to develop a full proposal:

Kelliher notes that the governor had all of the state's commissioners and finance experts working on the budget for months. The Legislature does not have those resources.
"He's had 7½ months. It's unrealistic to expect us to respond in just a few days,'' she said.
-MinnPost.com

While Democrats act surprised by the budget deficit, here is a timeline to consider:

November 30, 2006: "While it looks good, we have lived the effects of how fast a budget surplus can go away." – Margaret Anderson Kelliher commenting on the $2.2 billion budget surplus Democrats inherited when they took control of the Minnesota House and seemingly warning that it may not lost forever.

February 2007: The long-term budget outlook for FY 2010-11 has declined since November. – MMB Forecast Summary, page 7

November 2007: FY 2010-11 Planning Estimates Turn Negative; The reductions in the 2008-09 revenue forecast combined with the underlying growth in projected spending, result in a $211 million structural shortfall in the [2010-11] biennium. – MMB Forecast Summary, page 6

February 2008: Projected Shortfall for 2010-11 Biennium Has Grown; Budget planning estimates for FY 2010-11 now show a shortfall of $1.086 billion. – MMB Forecast Summary, page 1

As evidenced, Democrats were warned about a deficit in the 2010-11 budget two years ago in February 2007. Undeterred, they proceeded to spend the entire $2.2 billion surplus and grow state government spending by 10 percent. These warnings, combined with the fact that the Legislature has at its disposal a wealth of expert fiscal and research staff (partisan and nonpartisan) debunk Democrats' attempt to claim they do not have the time or resources to develop a budget proposal of their own.

March 5, 2009: HOUSE & SENATE REPUBLICAN LEADERSHIP RAISE CONCERNS ABOUT LACK OF PROGRESS AND PRIORITIES FROM DFL LEADERSHIP ON SOLVING BUDGET

(St. Paul) – Republican leadership of the Minnesota House and Senate today raised concerns about the lack of progress and priorities from DFL legislative leadership in solving the growing budget deficit. Precious committee time in the Minnesota Senate has been spent debating legislation that would change the certification process for interior designers (SF 376). Only four bills have been passed this session and signed into law, including one bill related to boiler regulations (SF 212).

Today – one day before the February budget forecast – legislation that would provide a regulation system for body art technicians (SF 525) will be debated in Minnesota Senate’s Health, Housing and Family Security Committee. In the Minnesota House of Representative’s Local Government Division Committee, a bill that would authorize $1,000,000 for the creation of dog parks in the Twin Cities (HF 297) will be heard.

"We’re 40 percent done with the legislative session and we’ve done everything except something to solve the growing budget deficit" said Senate Republican Leader Dave Senjem (R-Rochester). “The message today for the DFL leadership is clear: let’s stop focusing on dog parks and body art technicians, let’s get some budget targets, let’s get a process established, and let’s get to work solving the growing budget deficit.”

“Finance officials have warned about this deficit cycle for two years, and Democrats chose to ignore the warnings,” said House Republican Leader Marty Seifert (R-Marshall). “They squandered the $2.2 billion surplus in 2007, grew state government spending by 10 percent and then crossed their fingers in the hopes that the economy wouldn't nosedive.”

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