04-09-1975 Council Agenda - Laserfiche WebLink

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WENDELL R. ANDERSON STATE OP -.AIININi..›-;OTA Of T/EF ST. PAUL 55L55 Macch 25, Mc. Dean Lund League of Minnesota runicipalities ?0(.7 Eaover Buildinc 480 Cedar Street St. Paul, Minnesota 55101 Dear Mr. Lund: I wish to inform you of certain disturbi. [coro in 7.r,e current legislative session. As you know, Co:;' proposed the return of gross earnings taxes from .-..mH:oad and zele- phone companies to local municipal and town ;0-Jrirrir. .Ths will amount to $46 million in 1976 and $49 million ±h will be in addition to the existing Local C:ouery-T-t h:f Governor Anderson believes this addj.-E(J-TT needed to meet the financial needs of local co7c.rh1m anji t:r allow changes in the restrictions of state levy ilintt However, I now believe that there arc: cr:7r chat there will be no increase at all in state aicT io -Jr:d Lowl: governments. This strong possibility exists becoh of the chance cf adoption of substantial income tax cuts or sae 7.a.:c-cyer of county government welfare costs_ The state of Minnesota is not thc fed. .r7:• :r.y-cr:Int. The state cannot engage in deficit financina. Our Thus, any income tax cut or any state take-ovc:: costs must be balanced by eauivalent cuts in othe: e7-7- - I believe that if cuts in income tax or a Ta:ca va -r :3 adopted, then it is highly likely that com.PE:s in stare education aids to local school dishrihtc viding any incchase in municipal or to,iln aid. Th inoreaccs in aid will further reduo. - ch-lecr: 4n levy lirHts.