Raising taxes, which is so out of fashion on the state level, has suddenly become all the rage with local governments. Case in point: St. Paul. Twelve years without a property tax levy increase is enough says Mayor Randy Kelly. On Monday the mayor announced his run for re-election and tipped his hand on the tax plan. Tim Nelson has the story in the St. Paul Pioneer Press:

"To address the growing threat of gang violence, homeland security and public school security in St. Paul, we will ask for voter approval for increased funds for schools and public safety in St. Paul," Kelly told about 100 supporters gathered at Tivoli Too, a design and sculpture studio in Highland Park. Tivoli Too is the company that made the popular "Peanuts" sculptures that have decorated St. Paul for the past five summers.

The mayor declined to be specific on city needs or to offer many details about his tax proposals, but the positions represent reversals: He opposed a successful excess levy referendum for schools in 2002 and has proposed flat city levies for the last three years.

"We are likely to be engaged in a referendum for increased resources for schools, and we think it is appropriate to have a discussion on public safety at the same time," Kelly said. Although the city has the authority to raise taxes on its own, Kelly said he would consider a public safety referendum to be binding.

St. Paul school leaders were glad to hear Kelly is speaking in support of education funding. But Toni Carter, the school board's chairwoman, said the district is focused on getting a funding increase out of the current legislative session and isn't looking at a fall 2005 levy referendum.

Kelly has been an ardent supporter of the fee-based budgeting pioneered by former Mayor Norm Coleman. Even though he's making it dependent on a referendum, the move on taxes seems like a major, if somewhat perplexing shift. His announcement followed on the heels of this story by Rochelle Olson in Monday's Star Tribune.

Minneapolis is considering an additional half-cent sales tax to pay for public safety, a necessary move, some say, that bucks election-year wisdom against tax increases.

Council President Paul Ostrow has been shopping the idea to city business leaders, and Mayor R.T. Rybak isn't ruling it out. The proposal would push the Minneapolis sales tax on retail purchases to 7.5 percent. The state imposes a 6.5 percent tax.

"We're very, very serious about it," Ostrow said. Council Ways and Means Chairwoman Barbara Johnson and Council Majority Leader Scott Benson also have signed on. "We have to find additional resources for public safety," Johnson said. "That would be exclusively what I would want to do -- use it for public safety."

It goes without saying that Minneapolis and St. Paul are the darkest blue areas of blue state Minnesota. But what is behind this election-year talk of higher taxes? Is it a holdover from last year's election, or are local leaders picking up on something that the governor and legislators should be paying attention to?

In Capitol news ethanol had a good day in the Senate. Here's an item by MPR's Michael Khoo:

Currently, gas sold in Minnesota is 10 percent ethanol. That amount would double by the year 2012 under the Senate proposal. The body approved the measure on a 54-12 bipartisan vote.

Supporters say increased ethanol use will reduce dependence on imported oil and produce fewer tail-pipe emissions. DFLer Jim Vickerman of Tracy said the new standard would also prop up the struggling rural economy.

"I want to ask that you would look kind of beyond the ethanol part of this and let's just say this is one more thing that maybe we can raise farm prices up by a little bit," he said.

Gov. Tim Pawlenty supports the proposal and House lawmakers are considering a similar provision. Some car manufacturers argue current engines aren't designed to burn ethanol.

If you think the lopsided Senate vote means the debate over ethanol isn't still going strong, listen to the wrestling match on the subject I refereed yesterday on Midday.

Finally, the latest in the Mark Dayton replacement run. As Republicans weigh a run for Senate against Dayton, a phalanx of potential candidates has its eye on the 6th District congressional seat. Here's the latest from the Associated Press:

Second-term state Sen. Michele Bachmann, a Republican best known for her dogged pursuit of a constitutional amendment banning gay marriage, has taken a concrete step toward running for Congress.

Bachmann told GOP activists in a letter last week that she was
setting up an exploratory campaign committee to weigh a bid for the
6th Congressional District seat. She is one of several Republicans
expected to get into the race if incumbent Rep. Mark Kennedy runs
for the U.S. Senate in 2006 against Democratic Sen. Mark Dayton.

In the letter, Bachmann, of Stillwater, extolls her conservative
views.

"I have been a leading proponent of defending the right to life
of the unborn, upholding our second amendment rights, including
range protection and private property rights," Bachmann wrote.
"Last year I led the effort in Minnesota to pass a constitutional
amendment protecting the sanctity of traditional marriage between
one man and one woman."

The 6th District stretches from the St. Cloud area across the
northern Twin Cities suburbs to the Stillwater area. It includes
all or most of Anoka, Benton, Sherburne, Stearns, Washington and
Wright counties.

Other Republicans exploring campaigns are: former education
commissioner Cheri Pierson Yecke, Secretary of State Mary
Kiffmeyer, and state Reps. Jim Knoblach and Rep. Phil Krinkie.

On the Democratic side, Kennedy's 2004 challenger Patty
Wetterling is the most talked-about candidate for 2006.