Photos For more affordable housing Your Voice Join the conversation with other MPR listeners in the News Forum.

	E-mail this page			Print this page

Minneapolis trims long-term spending; cuts affordable housing plan
by Art Hughes, Minnesota Public Radio
January 31, 2003

Lef to right: Rev. Al Gallman, President of the Minneapolis NAACP; Gene Martinez, public policy advocate for Hennepin-Carver ARC, and Gary Schiff, 9th Ward City Council Member. (MPR Photo/Art Hughes)

The Minneapolis City Council passed a five-year spending outline that carves $11 million a year from the city budget for five years. Housing advocates and a group of council members oppose the plan because they say it abandons promises to help residents most in need, especially those who can't make ends meet enough to afford a place to live.

Minneapolis, Minn. — The disagreement is over the plan backed by the mayor and a and approved by eight council members to trim Minneapolis city spending $55 million over the next five years. Critics are especially angry over the effort to axe a special levy adopted last year to raise $4 million to boost affordable housing projects.

Mayor R.T. Rybak, two council members and city budget staff crafted the plan as a way to balance continually rising property taxes with the city's spending priorities.

But City Council Member Gary Schiff says the plan hurts the poorest residents most and other councilmembers who represent the city's poorest neighborhoods feel the same way.

"Without the support of the inner city, I do not believe he is the mayor of the entire city," Schiff said. "And I call on him to comprimise with representatives from inner city wards and to pass a plan that we can all agree meets the goals of the city of Minneapolis."

Instead of phasing out the $4 million levy, Schiff proposes extending the time the city takes to pay off a deficit built up in an internal fund, a move the city's finance director calls "a big no-no" and could result in a lower credit rating for the city. Schiff also proposes cutting all departments except police an additional two percent.

Housing advocates joined the criticism of the mayor. Tom Fulton with the Minnesota Family Housing Fund says Rybak's stated support of housing has turned out to be empty promises.

You cannot serve poor people if you do not have rich people who are willing to pay their taxes and contribute resources that are necessary to provide those services. - 13th Ward Council Member Barret Lane

"I went for a long time just hoping for the best," Fulton said. "Thinking, well, he's getting organized and he has tough problems to deal with, but eventually it'll happen. But my trust is gone. It's just completely gone."

Council Member Dean Zimmerman ended up supporting the plan but said the relief in property taxes is minimal compared to the vital services that are now in jeopardy.

"There are many people who can make some choices of whether to buy a new car or not, to remodel the kitchen or not to take a trip to Hawaii" Zimmerman said. "And there are other people that have choices of to starve to death or sell drugs or go into prostitution or become a thief and steal in order to just survive. I don't think the pain is being felt equally in this city."

The comment prompted a heated response from 13th Ward Council Member Barret Lane, who represents a swath of affluent residents in southwest Minneapolis and was the chief architect of the long-term spending plan.

"You can assume that just because I live within eye-shot of Edina that I don't understand these problems," Lane said. "But we have to get our act together here people. If we vote this down, if we have no plan going into the LGA (Local Government Aid) cuts, the people who pay the price are the people who can least afford it."

Lane said opponents are resorting to class warfare and curbing city spending is necessary to sustain financial health.

"You cannot serve poor people if you do not have rich people who are willing to pay their taxes and contribute resources that are necessary to provide those services," he said. "Frankly the people in the 13th Ward are willing to do that. But what they want... they want to see a plan. They want to see what they get for their dollars."

Council President Paul Ostrow defended the plan, saying the spending priorities emerged from months of meetings and police, firefighters, water and sewer service topped housing.

"Basic city services and public safety rated ahead of community development when we had our strategic planning," Ostrow said. "It was striking to me how clear that was. We spent a ton of time on this. If there was one issue that was most eye opening to me it was that conclusion. And that is precisely the conclusion that is reflected in this document."

The conflict ends a streak of council consensus for major decisions backed by Mayor Rybak. In an interview, Rybak said he remains committed to affordable housing, but city's financial situation is especially difficult.

"We're having to make extremely unpleasant choices and it's going to make a lot of people angry," Rybak said. "But the values that I have as mayor are going to be first off make sure the city's basic services are delivered then get about the tough work of community development especially affordable housing."

The Council approved the plan with Council Members Gary Schiff, Robert Lilligren, Natalie Johnson Lee and Dan Niziolek voting against it.

News Headlines

Related Subjects