Pledges of "no new taxes" at the state level have led to dramatic property tax increases for Winona residents, according to a Minnesota think tank.

A new report by Minnesota 2020 shows that the average Winona homeowner's property taxes have increased 26 percent since 2002, when adjusted for inflation.

The cause isn't bloated local governments, as many assume, said the report's author, Minnesota 2020 fiscal policy fellow Jeff Van Wychen. The city of Winona has reduced the size of its work force and its expenditures over the same time period, but not enough to keep up with a 34 percent drop in state funding, figures show.

"For eight years, the state has passed its budget problems onto local governments, forcing mayors, city councils and school boards into making tough choices," Van Wychen said. "People are paying higher property taxes, but not receiving any more services."

The local figures reflect a statewide trend shown in the report. Overall, Minnesota cities have cut spending by 15 percent since 2002, but homeowners statewide have seen an average 38 percent jump in property taxes.

A need to maintain services even as state funding drops puts local leaders in a tough position, Winona Mayor Jerry Miller said. He and Winona City Council members spent two nights earlier this week pouring over a budget recommendation for next year that includes a property tax levy increase of 4.6 percent.

Council members were divided over the proposed increase.

Miller indicated support, but offered a plan to help Winona taxpayers. If the city receives its full share of $9.1 million in promised local government aid next year - about $1 million more than it received this year - about $500,000 would be put toward lowering the tax levy in 2012.

Regardless, cities such as Winona need to receive their fair share, the mayor said. He noted that the city generates more than $20 million in income tax revenue each year, but receives less than half of that back in aid.

"The people living in Winona deserve the same quality of service as areas with wealthier property tax bases," Miller said.