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MAYOR AND CITY COUNCIL <br />PAGE THREE <br />JANUARY 26, 1990 <br />what the other groups are paid. Also if current State <br />labor law remains unchanged, wage decisions will be <br />taken out of the hands of local government. At the <br />present time arbitrators ruling on police or fire wages <br />"must consider" but are not bound to a local government <br />units' Pay Equity Plan. As a result, if an arbitrator <br />sets police or fire wages in excess of the Plan, every <br />other employee in that unit will be receiving <br />proportionally the same wage. <br />Either you have collective bargaining and binding <br />arbitration or you have true pay equity based upon <br />established job values. I would recommend we take the <br />time to educate our legislators about Pay Equity and <br />its implications in the hope of getting to realize <br />the implications of the DOER proposal. <br />C. State Revenue Shortfall - As has been previously <br />announced, the State projects as a revenue shortfall by <br />the end of the year of $175 to $200 million. The <br />former and current Finance Commissioners have indicated <br />that Local Government Aid would be a target for cuts in <br />order to make up for the shortfall. Attached is a copy <br />of a resolution adopted by Blaine regarding their <br />position on this matter. You might wish to adopt a <br />similar resolution stating our position. <br />D. Light Rail Transit (LRT) Funding - The Regional Transit <br />Board has submitted a report on LRT to the Metropolitan <br />Council which includes fiscal disparities as the third <br />most desireable means for funding. Currently the City <br />receives a substantial contribution from the fiscal <br />desparities on an annual basis. <br />The concern is that if fiscal disparities is tapped for <br />LRT, it will become a target for many other projects or <br />activities and no longer serve the purpose for which it <br />was intended. Any effort to use Pay Equity other than <br />to provide a sharing of tax bases among the metro <br />cities should be resisted. <br />E. Contractor Licensing - In the past bills have been <br />introduced that would have the State licensing <br />contractors rather than individual cities. This issue <br />will be introduced again and should be resisted if we <br />wish to retain any local control. <br />F. Metropolitan Council (Met Council) Zoning Approval - <br />The Met Council will be proposing that they have <br />