Dems have long charged the self-described anti-tax Pawlenty with imposing stealth taxes by cutting aid to local governments that in turn must increase property taxes to maintain essential services and government functions.

Pawlenty counters that such hikes aren’t inevitable and that counties and cities simply need to look harder for budget items to cut.

But in a letter (pdf) to the Legislative Advisory Commission that is reviewing (in an advisory capacity) proposed unallotments, the Pawlenty administration concedes that state budget cuts cause taxpayers to pay more taxes via property taxes hikes:

Property Tax Refund/Income Tax Interactions: The reductions in aids to local governments are assumed to result in property tax increases which increase state property tax refund payments and reduce state corporate and individual income tax receipts due to larger deductions. This cost was not included in the fiscal estimates provided on June 16. The estimated impact is $5.7 million for FY 2011.