Baxter fears harmful effects from budget deal

BAXTER -- A budget compromise between the Minnesota House and Senate on local government aid could hurt Baxter, and Baxter City Council members are asking area lawmakers to reject the House version.

The proposal is for a change in the formula used to figure local government aid and the amount allocated to cities.

Under current law, Baxter receives about $329,000 in local aid and another $225,000 which is limited to three years for College Road for a total of about $554,000.

Under the proposed changes within local government aid in the House, the homestead and agricultural credits would be eliminated, leaving Baxter with a $201,000 shortfall in next year's budget.

In the Senate version, Baxter's local government aid would remain unchanged at $554,000.

A compromise agreement proposal also would include property tax levy limits for two years, limiting the levy increase to the loss of state aid, meaning no increases in the operating budget.

"It would be devastating," on the 2002 budget, Assistant Finance Director Jeremy Vacinek said Tuesday about the proposed legislation during a special Baxter City Council meeting.

Vacinek asked council members to contact area lawmakers, Sen. Don Samuelson, Rep. Steve Wenzel and Rep. Dale Walz about the city's opposition to the proposed legislation and the effect it would have on city services.

Brainerd received more than $3 million in local government aid in 2001. Brainerd's local aid would increase by $339,000 in 2002 under the House's proposal and by $407,000 under the Senate's proposal.