
FOR IMMEDIATE RELEASE
February 23, 2010
Darin Broton, Tunheim Partners
Office: 952.851.7286
Mobile: 651.983.9432
Minnesota Counties Unveil Plan to Save the State $1 Billion per Biennium
P.A.C.T. Plan Shifts Road Maintenance, Highway Patrol Responsibilities to Counties; Eliminates State Aid to Counties; and Gives Counties Authority to Merge, Consolidate
Photo: AMC President Jon Evert, a Clay County Commissioner, with John Baerg, a Watonwan County Commissioner and AMC Secretary-Treasurer, and Paul Wilson, Olmsted County Commissioner and AMC Past President, introduced the plan at a Capitol press conference today.
(ST. PAUL, MN)
– With the state currently facing a $1.2 billion budget deficit and a larger deficit during the next biennium, Minnesota’s counties today announced their PA.C.T. plan – which stands for partnership, accountability, creativity and transparency – that will save the state almost $1 billion in the next biennium, including $275 million returned to the state’s trunk highway fund. The plan, introduced by the Association of Minnesota Counties (AMC), includes 10 opportunities to redesign state government by streamlining services, reducing waste and improving efficiencies to create ongoing cost savings for the state."Minnesota’s counties are renewing their commitment to Minnesotans," said AMC President and Clay County Commissioner Jon Evert. "For decades, state and county government have been performing the same tasks while expecting the same results. Today’s system is in disrepair and Minnesotans expect better results from their government, at every level."
One key element of the plan is redesigning public safety. Counties and cities would acquire the road patrol responsibilities from the state highway patrol. The state highway patrol would be charged with accident reconstruction services, investigation of major crimes and management of the state weight standards. This shift would result in cutting the state highway patrol in half and saving the state an estimated $75 million in the next biennium.
Another component to the plan is redefining responsibilities for highway maintenance. Under AMC’s P.A.C.T., counties would take over the responsibility of maintaining all state highways, except freeways. In exchange, counties are asking the legislature for some flexibility in using part-time works for conducting summer maintenance and snowplowing. This change would save the state at least $200 million in the next biennium.
The savings from redesigning highway maintenance and the state highway patrol would restore at least $275 million in the state highway trunk fund in the next biennium, or approximately the cost of the reconstruction of I-35W/Highway 62 Crosstown project or a 5 cent per gallon gas tax increase.
AMC also called for replacing County Program Aid and other funding to counties with a statewide county sales tax of a half (.5) percent. Under this proposal, county governments would retain a vast majority of the revenue generated in their county, with a percentage going into a disparities fund to help smaller counties. If a county chose not to participate in the sales tax, the county board could vote to ‘opt-out’ and not receive any funds from the state or sales tax. The cost savings from this proposal would save the state an estimated $600 million per biennium.
"Replacing County Program Aid with a county sales tax restores local control to county governments," continued Evert. "Counties could decide to reject the tax and operate with little to no state funding, or they could choose to lower property taxes or restore essential services. Most importantly, counties become more accountable to taxpayers for the services they provide and the decisions they make."
Other items in the plan include:
AMC’s P.A.C.T. will receive its first legislative hearing on Wednesday, February 24 in the House Tax Committee’s Property and Sales Tax Division.
Background:
In 2008, AMC announced its Minnesota Redesign project – an effort aimed at highlighting some of the inefficiencies created by state mandates on counties and propose solutions to streamline government services and provide better results. This year, AMC is renewing its commitment to Minnesota with P.A.C.T., which stands for partnership, accountability, creativity and transparency. The P.A.C.T. is a 10-point plan that would bring greater efficiency to government, improve service delivery and reduce costs to taxpayers.About The Association of Minnesota Counties:
The Association of Minnesota Counties (AMC) is a voluntary statewide organization that assists the state’s 87 counties in providing effective county governance to the people of Minnesota.###