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<br /> • program enables all cities in the 12-, 16-ounce gloves. Everyone is those developed since 1971; and
<br /> metropolitan area to receive a swinging just as hard as they to include residential property in
<br /> share of the growth in the area's were before but the impact has the tax-base calculation.
<br /> tax base, irrespective of the physi- been lessened." However, the program has re-
<br /> cal location of the added tax base. The vast majority of cities and mained virtually unchanged for
<br /> Every city is required to deposit townships participating in the fis- almost 20 years. It is difficult to
<br /> 40 percent of its commercial/ cal disparities program receive change because most jurisdictions
<br /> industrial tax-base growth in a more funds from the pooled tax gain under it. Even in Hennepin
<br /> regionwide pool.The funds are base than they contribute, but 30 County, which is the only county
<br /> redistributed to communities ac- contribute more than they receive. loser, the majority of its 46 mu-
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<br /> cording to a formula based on Some 15 percent of the region's nicipalities gain more than they r.
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<br /> population and market value of localities provide almost 95 per- contribute. Noting that at least '
<br /> property. cent of the pooled funds. The five of the 15 largest losers philo-
<br /> The brainchild of the Citizens largest county contributor is sophically support the program,
<br /> League,a nonprofit public interest Hennepin, home to both Minne- Minneapolis lobbyist Barnhart
<br /> group, the fiscal disparities pro- apolis and Bloomington, the warns that if their losses become
<br /> gram is sui generis. Although tax- region's largest suburban jur- excessive, they may press harder
<br /> base-sharing programs operate in indiction. for changes. ',
<br /> a few other places in the country, For the most part, the jurisdic- (It should be emphasized that
<br /> they are far less comprehensive tions that are winners (net receiv- the tax-base-sharing law is just one
<br /> and lack ties to an overall regional ers of funds) and losers (net con- of several programs whose aim is
<br /> A.
<br /> planning system. tributors of funds)under the to equalize fiscal disparities.The f
<br /> The intent was for the fiscal dis- program have not changed over state long has provided a major z
<br /> parities program to accomplish the years.The most dramatic share of municipal operating ex-
<br /> three goals: lessen the intraregio- crossover has been Minneapolis. penses. In the early 1970s, Minne-
<br /> nal competition for commercial/ Until 1984, Minneapolis's net re- soca took over the financing of
<br /> industrial development, known ceipts were absolutely the largest. public schools, based on uniform ,,
<br /> • wischool taxes throughout the state �'
<br /> as fiscal zoning; promote more For the last six years, the city has g
<br /> efficient land use patterns; and been a net contributor and, forte the state making up the short
<br /> reduce fiscal disparities among three of those six years, the larg- fall; today 64 percent of the pub-
<br /> local governments. In fact, the est gross contributor. (However, lic education budget comes from
<br /> program has not influenced de- other communities, such as state funds.) t
<br /> velopment patterns significantly, Bloomington, are larger net con-
<br /> largely because planning and zon- tributors.) Cumulatively, the dol- 1
<br /> Tools for Implementation
<br /> ing remain under local control. lar amount of Minneapolis's losses
<br /> Moreover, the aggressive use of exceeds its gains.The city's cross- Requirement for Comprehen-
<br /> tax-increment financing in the over from recipient to contribu- sive Planning.The Met Council's
<br /> area is proof that competition tor, a testament of sorts to the power to manage growth was
<br /> for development remains stiff. success of the tax-base-sharing strengthened by the Metropoli-
<br /> On the other hand, tax-base program, is the result primarily tan Land Planning Act of 1976,
<br /> sharing has reduced the differ- of recent explosive downtown which requires all local govern-
<br /> ences in local tax bases. As re- growth. ments in the area to adopt com-
<br /> ported in a recent Citizens League The harshest critics of the tax- prehensive plans.These plans e
<br /> study, the gap between the high- base-sharing program are jurisdic must be consistent with the
<br /> est and lowest commercial/ tions that qualify as losers.Bloom- council's metropolitan systems
<br /> industrial tax bases is 17 to one. ington, for example, was one of plans for airports, parks,transpor-
<br /> Without tax-base sharing the dif- the communities that contested tation,and sewers,which—together
<br /> ference would be 170 to one. the program in court in the early with the council's "Metropolitan
<br /> What the fiscal disparities act 1970s. But most critics usually Development Guide" and that a
<br /> has done, says Bill Barnhart, lob- suggest fine-tuning, rather than guide's keystone, the "Metropoli-
<br /> byist for the city of Minneapolis, gutting, the program.They have, tan Development and Investment
<br /> is "lessen the effect of not being for example, tried to lower the Framework"—function as the re-
<br /> a big winner." In an analogy with contribution percentage from 40 gional comprehensive plan. ,
<br /> boxing,he says, "In the 1800s, to 30 percent; to include all corn- The land planning act explic-
<br /> • prizefighting was done with bare mercial/industrial properties in
<br /> itly requires local zoning and cap
<br /> knuckles. Now boxers wear 10, the formula, rather than only ital improvements programs to
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<br /> 22 February 91/?A'3 ? Maril l�
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