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FUNDING FOR MANDATED SERVICES <br />Position: <br />Washington County seeks to protect our local taxpayers from any further shifts of state costs to the <br />county property tax (which is a regressive and unpopular form of taxation) and the potential erosion in <br />our ability to deliver high quality, essential services in an efficient manner. We encourage the legislature <br />and the Governor to provide flexibility and full funding for any mandates imposed on local governments. <br />Issue: <br />County governments are tasked by both the <br />state and federal governments to carry out County Program Aid (CPA) <br />mandated programs on their behalf. Nearly 80% <br />Compared to Levy Funding <br />of all operating costs in the annual county <br />=012 <br />budget are to pay for mandated services. <br />$10 52% <br />Counties have identified potential reforms, <br />Population G..h <br />0.51% <br />repeals, or changes that could reduce costs by <br />$9 <br />050% <br />over $8 million a year just for Washington <br />$$ <br />• Inflatipn Growth <br />as% o <br />County (see Appendix A for a list of potential <br />$' <br />1 8.00% <br />46%M- <br />s%M- <br />< <br />items <br />items for reform). The cost savings from <br />$e <br />°°% <br />potential reforms and repeals continue to grow <br />1.12% <br />1 1.12% <br />$5 <br />42% <br />as new mandates are passed and the cost of <br />$a <br />T34%j <br />V�dJli�1gton <br />40% <br />existing mandates increase. In just the past few <br />nolo 201120122013 zola zols 2016 zov <br />Proposed <br />years, the potential savings has risen from just <br />-*-CPA fLevy% <br />more than $6 million to now nearly $8.5 million. <br />Washington <br />County <br />Federal and state financial assistance is <br />provided but does not cover the full cost of <br />providing the mandated services and in many situations the amount of aid does not even cover the <br />increases in costs from one year to the next to provide <br />those services. The shifting of costs to the <br />county property tax places an unstainable burden on <br />local property taxpayers and inhibits the county's <br />ability to provide high quality, essential services. <br />County Program Aid (CPA) is provided by the state to help fund state mandated services. The increase in <br />aid in 2012 and 2013 allowed the county to lessen its reliance on the property tax. A slight decrease in <br />aid in 2016, followed by a small increase in 2017, has meant that aid amounts have remained basically <br />unchanged since 2014. <br />Cumulative Population, Inflation, and <br />Levy Growth since 2010 <br />12.00% <br />10.00% <br />0 <br />N 8.00% <br />d <br />6.00% <br />L <br />0 4.00% <br />2.00% <br />UXU"/a <br />2010 <br />2011 <br />=012 <br />1 2013 <br />2014 <br />2015 2016 <br />Population G..h <br />0.51% <br />• Inflatipn Growth <br />1.30% <br />4.46% 1 <br />6.53% <br />1 8.00% <br />1 9.62% <br />9.82% 10.83% <br />—Net Levy Growth <br />0.94% <br />1.27% 1 <br />1.12% <br />1 1.12% <br />1 1.79% <br />T34%j <br />V�dJli�1gton <br />37 <br />G _ <br />� <br />Washington County strives to provide <br />services in a highly effective and efficient <br />manner. The county has the second <br />lowest operating costs per capita of the <br />seven metropolitan counties and the third <br />lowest levy per capita. The county has the <br />lowest human services administrative <br />costs per capita of all Minnesota counties <br />and one of the lowest county tax rates. <br />The county holds the highest credit rating <br />(AAA) from both major rating agencies. <br />The overall growth of the county levy over <br />the past five years has been considerably <br />