Gov. Dayton and lawmakers earlier this year replaced the homestead market value credit, which lowered many Minnesotans' property taxes, with a new program. But local governments say the new plan is raising property taxes significantly. And poor, rural Minnesotans are bearing the brunt of it.

A bill from the chairman of the House Taxes Committee would grant larger tax refunds to homeowners whose property tax bills are soaring. The bill would also slash taxes for all businesses. But the top House Democrat on property taxes says Republicans missed a chance to cut property taxes earlier this year.

Republican leaders say the change would save Minnesota businesses $50 million the first year. That amount may well be added to the state budget deficit. The Senate GOP says the job creation would be worth it. DFL critics say there's no assurance that companies would used the money they save to create jobs.

Minnesota Public Radio takes a look back at the year and finds two trends in how communities across the state are wrestling with budgets. Property taxes, which have been rising for more than a decade, continue to go up as local governments try to make up for losses in state aid. Many municipalities are also cutting into their own budgets and payrolls to find savings on the other end.

The proposal would cut taxes by about 30 percent over the next six to 12 years. The House Taxes Committee Chairman Greg Davids told the Pioneer Press it would be the "bigger job creator." DFL Gov. Mark Dayton hasn't ruled out the Republican plan, but doesn't know how they plan to pay for the tax cut.

Voters in North Dakoka -- flush with oil boom money and enjoying the lowest unemployment in the nation -- had the chance Tuesday to become the first state to cast off property taxes. But in the end, voters decided to keep the $800 million a year the taxes raise.

One year after holding property taxes flat, Minneapolis Mayor R.T. Rybak at his annual budget Wednesday proposed a 1.7 percent increase for next year. Rybak said the increase would have been 3.4 percent if not for the Vikings stadium legislation, which alleviates the city of financial obligations to the Target Center.

Recent changes to the state's property tax rules are increasing taxes on apartment owners, and many of them may pass those costs on to their tenants. High demand and few vacancies aren't helping the situation for renters.