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Issues for discussion <br />1. Property Tax Rcfonn/LGA-HACA <br />For sevenl years the Governor and Ugislatute have been discussing major chan^ in the <br />property tax - local government funding sys^ with the g^ of providing more funding for <br />educatioD ynrf property tax reduction. Just in diis last session: <br />- A property tax freeze passed the Senate <br />- A ^^tutional amendment to eliminate school funding from local property taxes passed <br />the House . u <br />- Bills io eliminate city HACA were heard in committees of both houses <br />- Major tax refonn bills were heard in both houses <br />TTie Governor and various commissions he has established during his tenure as governor have <br />recommended total eliinination or major reductions in LG A The busi^ss conMnumty <br />through its main associations (Minnesota Chamber, Business Partnership and the Minnesota <br />Taxpayers Association) has tended to support the Governor ’s thrust Now that tte bus^ss <br />community has accompUshed major changes in workers compensation, its major legislative <br />focus wiU be to reduce C/I property taxes. <br />1996 could well be a watershed year for property tax - local government [“"***"8 <br />modirications. Sweeping changes can be used as campaign rhetoric and the eff^of <br />such changes (some which may have negative political implications) would not be felt <br />until after the 1996 election. <br />Please think about how cities and the AMM can best position ourselves to be a meaningful <br />participant during these discussions in the 1996 session. <br />2. Transportation/Transit Funding <br />has u give and soon! Major highway projects state-wide and in the m^ area <br />such as 1-495,1-35W and Hwy. 100 North have been shelv^ for the foreseeable <br />Transit in the metro area, both regular route and metro mobility, is being pared b^ Many <br />regular transit routes have been eliminated and many more are scheduled <br />There is even serious discussion of eliminating all regular route transit outsi^ of the 1-494- <br />696 beltway. Fares will have to be raised which will lead to less bus ridership and more <br />congestion on the main highways. Reduced public transportation could also negauvely unpact <br />the region’s efforts to provide more affordable housing in the developmg suburbs since lower <br />income people tend to be more public transit dependent <br />Again, please give some thought as to the role metro dty ollldals and the A^ can <br />play in trying to break the funding "log jam" which has dominated discussions during