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A functional state and local fiscal relationship must emphasize adequacy, equitability, <br />sustainability and accountability for public resources and communication among the <br />state, cities, and public. A functional partnership also emphasizes collaboration and <br />partnership between the state and local units of government. <br />City services are traditionally funded through property taxes, fees, and state aids. <br />Increasingly, cities are bearing more costs for services that have historically been the <br />responsibility of the state. <br />Metro Cities supports a state and local fiscal partnership that emphasizes the <br />following: <br />•Financial stewardship and accountability for public resources that emphasizes <br />efficiencies in service delivery and effective communication among the state, local <br />units of government, and the public. <br />•Reliable and adequate revenue sources including the property tax and local <br />government aids, and dedicated funds to meet specific local needs. Metro Cities <br />opposes diverting dedicated funds or local aids to balance state budgets. <br />•Sufficient revenue sources available to cities that allow cities to address local <br />needs and citizens to receive adequate services at relatively similar levels of <br />taxation, and that maintain local, regional, and state economic vitality and <br />competitiveness. <br />•Adequate state funding to cities to address mandates enacted by the state, and <br />flexibility for local governments in implementing state mandates to minimize local <br />costs. <br />•Adequate and timely notification regarding new legislative programs or <br />modifications to existing programs or policies to allow cities time to plan for <br />implementation and manage any effects on local budgeting processes. <br />•Support for cooperative purchasing arrangements between the state and local <br />units of government. Such arrangements must be structured to be able to address <br />unexpected delays or other challenges in the procurement of goods, so that any <br />disruptions to local government operations and services that may result from such <br />delays are minimized. State officials should seek local feedback in the vetting of <br />product vendors. <br />•The concept of performance measuring, but opposition to using state established <br />measurements to determine the allocation of state aids to local governments or <br />restrict the ability of local governments in establishing local budgets and levies <br />MR-1 STATE AND LOCAL FISCAL RELATIONSHIP <br />2