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Politics & Government

State Budget Hits Washington County With Cuts

Now that a state budget is set, Washington County commissioners and officials can press on with the budget process.

Washington County is on the receiving end of a number of cuts included in the state budget that was signed into law July 20.

More sales tax money collected for transit projects is being shifted toward operating expenses, County Program Aid is being cut and the Market Value Homestead Credit program is changing resulting in a loss of revenue to the county, Administrator Jim Schug said at the Washington County Board meeting on Tuesday, July 26.

Commisssioner Gary Kriesel said he takes issue with a bill that now requires the Counties Transit Improvement Board (CTIB)—the consortium of counties charging residents extra sales tax money to fund transit—to provide more funding for transit operations, which lowers the amount that can be spent to expand the transit system. While he’s unhappy with the increase, Kriesel said he’s most upset about the lack of an expressed plan regarding the increase.

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“If they want to destroy transportation or shut it down at least they could have a plan,” Kriesel said. “Otherwise get out of the way, leave us alone and let us be successful.”

Commissioner Lisa Weik added she also disagrees with the lack of transparency when it comes to the increase—which translates to a diverted $15.3 million of of the board's revenue. She questioned the  constitutionality of the move saying it is double taxation in the case of some residents.

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The County Program Aid (CPA) and the Market Value Based Homestead Credit (MVTC) will now each bring in about $2.1 million less than county administrators expected. The county had budgeted for $7.6 million, but will now receive $5.5 million in County Program Aid. In Market Value Homestead Credit, administrators expected to receive $3.4 million, but instead the county will get $1.3 million. Planning ahead, Schug showed commissioners the 2012 budget—County Program Aid will mirror this year’s $5.5 million, and Market Value Homestead Credit will be eliminated.

The county will also receive reductions in the Vulnerable Children and Adults acts, Adult Mental Health Grants, Community Corrections Act and the Minnesota Family Investment Program.

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