PRESS RELEASE

For Immediate Release Friday, July 9, 2010

Contact: Noel LaBine 763-477-3086

Legislative Updates Seminar held at Huikko's in Buffalo

 

The Wright County Economic Development Partnership held a Legislative Update event with the Buffalo Chamber of Commerce at the Huikko's Bison Creek Banquet Center on July 8 th . Merton Auger from the City of Buffalo and Senator Amy Koch presented. There was a buffet lunch served at 11:45a.m.; about 65 people were in attendance.

Noel LaBine, Director of the Partnership for 2010, and Sally Custer, Director of the Buffalo Chamber, welcomed everyone. Then Justin Kannas of Bolton Menk, an engineering firm that sponsored the event, made some opening remarks about the variety of projects their firm has done with cities throughout the region including the city of Buffalo .

Merton Auger , Administrator for the City of Buffalo , shared comparisons about how federal and state government used to help cities and how little they help now. For instance, years ago cities did not have to pay sales tax. Several years ago the sales tax obligation was put upon local government to help pay for the state budget deficits. Now they not only have to pay sales tax, but they have had to undergo rigorous audits by the state to make sure they are paying all of their sales taxes. Another change is in the market value homestead credit for property taxes. For many years, the state would give to cities the amount of the credit that the property owners were exempted from through the homestead credit. That also has ended. To add insult to injury the state has mandated that the local units of government have to collect fees for the state. Routinely, the city collects building permit and water user fees for the state. On top of that insult, the state also mandates how much cities can charge for water rates.

Next, Senator Koch, who has served Wright County for five years, gave a presentation on the state budget situation. She talked about the court decision to overturn Governor Pawlenty's unallotment actions in 2009. That only added about 2 billion dollars more to the state's budget deficit. Since the court decision was made in the final days of the legislative session, most members found it prudent to approve the governor's unallotment. In addition to that effort other attempts to fix the budget included a funding shift whereas payments to school districts would be withheld for six months. This temporary fix allowed the state to continue operating. Although it is predicted that the state will realize a revenue increase of 9% to 10% due to the improved economy, the states expenses will go up 25% due to reinstatement of unallotment programs and a $3 billion increase in health and human services spending. Senator Koch completed her talk with a statement that what is needed is a total tax reform effort. This reform should include efforts to help businesses grow in Minnesota . She added that this effort can be very complex, because often there will be unintended consequences when dealing with changes in the tax structure.

The Partnership exists to enhance the business climate of Wright County and to help create more jobs in Wright County . The strategies the Partnership uses to achieve its mission include being an information resource and finding technical assistance; aiding business development through Business Retention & Expansion visits, providing financing resources, and providing business information and training through seminars and workshops. Also, the Partnership markets Wright County to business site locators, and maintains an excellent website, which includes a listing of commercial and industrial property available in Wright County (see www.wrightpartnership.org ). The Partnership also assists with Workforce Development and has gathered economic statistical information, which is available on its website.