|
Last Tuesday, the Hennepin County Board of Commissioners debated the question of how much to increase the property tax levy for 2010. The recommendation from the County Administrator was to set the levy increase at 3 percent. The Board members decided at the last minute to hike the property tax levy by an additional 2 percent, setting the levy increase at 4.95 percent, because as Commissioner Mark Stenglein stated: “There’s just way too many unknowns out there – and knowns -- for us to take any chances.”
Wouldn’t it be nice to run your family budget that way? Just tell your boss you need a raise because, “There are just too many unknowns out there.”
Most of the new tax revenue will go to meet additional expenses at the Hennepin County Medical Center. County taxpayers will subsidize the Medical Center to the tune of about $30 million for anticipated uncompensated care that the hospital will provide next year.
Hennepin County Medical Center’s budget required the added revenue from property owners primarily due to state budget cuts. Last May, Governor Pawlenty vetoed the second year of funding for General Assistance Medical Care (GAMC), a program which provides health care coverage for very low income Minnesotans. Because Hennepin County Medical Center provides services to many low income and uninsured individuals, their reliance on state funding is more critical.
However, let’s turn back the clock three years. Some of the same Hennepin County Commissioners that voted for the 4.95 percent tax increase were heavily lobbying the State Legislature to allow them to increase the sales tax in Hennepin County to fund a new $500 million Twins stadium. The Commissioners were opposed to allowing a taxpayer referendum on the .15 percent sales tax increase. In 2006, Hennepin County got what they asked for from the Legislature, a .15% sales tax increase, which occurred without a vote of the people. This new sales tax generates $30 million a year.
They got their new half a billion dollar Twins Stadium and as the ballpark neared completion, many County Commissioners could be seen grinning from ear to ear like a proud new father.
But oh how the tune has changed with the reality of the state funding reductions for health care starting to set in. Last week, in testimony before a House Health Care policy and finance committee, Commission Mike Opat said: “It was irresponsible for the state to abdicate its responsibility.”
How quickly things change. It was just three year ago that Commissioner Opat was leading the charge to raise property taxes by $30 million a year to build a new ballpark and now he is blaming the state because their County hospital has a budget crisis.
And what is Commissioner Opat’s solution to the County budget problem --- raise taxes.
It is more than ironic that Hennepin County’s subsidy to their Medical Center is $30 million -- the same amount of the sales tax they imposed to pay for their new half a billion ballpark.
No one can predict the future, least of all Hennepin County Commissioners. But the lesson all elected officials should learn from this example is: You can’t have it all!
Funding a half of billion ballpark, was not the proper role for Hennpin County – providing needed health care services for low income residents is the responsibility of the county.
As former speaker of the House Steve Sviggum would say: “Keep the main thing, the main thing.” Hennepin County Commissions usurped their role in pushing for a new tax to fund the Twins ballpark and now Hennepin County residents will face another tax increase to provide necessary health care for their low income residents. In the midst of an economic recession with high unemployment and record home foreclosures, raising property taxes by 5 percent is what is really irresponsible!
This column originally appeared in the St. Paul Legal Ledger Capitol Report.
# # # |
