Some Push for Elimination of Counties, Minn.'s Want More Power
Minn. Counties Say Give Us Sales Tax, We'll Forgo State Aid.
Minnesota counties would give up all their state aid in exchange for authority to levy a half-cent sales tax.
Instead of whining about the cuts, Mulder said, counties want Gov. Tim Pawlenty and the Legislature to give them more flexibility on how they deliver services and fewer spending requirements.
The association estimated their "redesign plan" could save the state $1 billion over the next two years, although Mulder said some savings wouldn't be realized for three or four years.
The state would save the most money under the plan — about $600 million over two years — by eliminating county aid payments. The counties would replace the lost state funds with a 0.5 percent sales tax, which would raise an estimated $640 million.
Counties could opt out of the sales tax, or they could also use it to reduce property tax levies, Mulder said, so it wouldn't necessarily mean a net tax increase for taxpayers.
