He stated that, We cannot build effective statewide policies that affect local governments if we do not seek their input into the process. We, at the City of Little Falls, are hopeful that the legislators and Governor Ventura keep that in mind when dealing with issues affecting us. We are hopeful that the sales tax exemption on local government purchases will be reinstated. This tax requires local taxpayers to pay twice, first with personal and property taxes, then with a tax on their tax dollars. With the state facing another multi-billion dollar budget surplus, it is time to repeal this hidden tax on government.
Unfunded mandates are a constant problem for local governments.
The legislature should review, modify or repeal existing unfunded mandates where possible. Statewide mandates should not be enacted unless full funding is provided, or a permanent, stable revenue source is established. Local governments should be given flexibility in implementing mandates to ensure their cost is minimized. To prevent rapid increases of property taxes in coming years, Local Government Aid and Homestead and Agriculture Credit Aid must be maintained. The Legislature also should analyze the combined impacts of the 1997 and 1998 tax bills and the changing economic circumstances impacting taxpayers and local governments.