The current discord between local officials complaining about lack of state government local aid funding and state officials finger-pointing at local officials for spending too much is the direct result of a passive State Auditor and the failure to clearly define to Minnesotans the legitimate and distinct obligation of state and local government.
Today we have a system where the state mandates that local governments perform a service, yet the state does not fund that mandate. State government has historically justified their actions through Local Government Aid (LGA), Homestead and Agricultural Credit Aid (HACA) or other program-specific dollars. Many times officials fail to justify their mandates because they know local government is a creature of the state and so must carry out legislation the state determines is best for all, whether or not they provide any funding for that legislation.
Minnesota communities are very diverse. What is best for one is not necessarily good for another. We get angry when the federal government tells states what to do, yet state legislators on both sides of the aisle regularly do the same thing to our cities, counties and local school districts. This needs to stop.
The state must provide local units of government more freedom to do what they deem best for their residents. State government has a duty to make sure local governments can provide adequate essential services through their own taxing base or state aid, but if a local unit of government decides to provide a high level of non-essential services, local government should pay for it locally – after taking care of essential services. The state should not be using the base level of LGA as a budget-balancing tool and should not be mandating what services local governments provide.
An active State Auditor protects taxpayers by both insisting that local units of government provide essential services before seeking state funds for non-essential activities and exerting her influence so the state doesn’t push mandates onto local government without funding.
