With Governor Pawlenty signing the legislature’s supplemental budget bill into law last week, cities across the state are engaging in budget cutting discussions now that they have a clearer sense of their state aid reductions. Under the bill, LGA and the Market Value Homestead Credit will be cut by $52.5 million in 2010 and $56.5 million in 2011. This is a vast improvement on the governor’s original budget proposal, which would have cut these programs by $125 million in 2010 and $252 million in 2011.
It’s difficult to imagine the consequences of the governor’s proposal on Minnesota’s communities considering that the legislature’s smaller cuts will still have a significant impact on essential city services and the affordability of being a city resident. Years of repeated cuts to LGA have left cities with few budget-cutting options to choose from—reserves are drained, hiring freezes are in place, capital equipment and improvements have been delayed. Below are just a few examples gathered since the budget bill signing of how cities are adjusting their 2010 budgets in the wake of these most recent cuts.
From the Mankato Free Press:
In response to state-aid cuts, the city of Waseca is forgoing replacement of its community development director in favor of cost-saving subcontracting…Other cost-saving compensatory measures the City Council is considering are reductions in the areas of recreation, community enhancements, personnel, and in contributions to a county-wide transportation program for elderly and disabled residents.
From the Bemidji Pioneer Press:
[T]he council will eliminate 4.5 positions through attrition. Two of those positions will be police officers, which will affect calls for service. Unless a “red lights and siren” emergency, expect a call for a police officer to take a lot longer to respond. And crime prevention patrols will be down, creating a greater risk of crimes from burglary to drunken driving.
Other positions in streets and utilities will see less street maintenance and, in the winter, a longer time to plow streets and perhaps even not at all on weekends.
Among other cuts, the City Council will cut its appropriation by 10 percent to the Bemidji Public Library.
From the Faribault Daily News:
[Cuts to LGA are] particularly problematic for a community that has such a high proportion of non-taxable buildings like the state schools, prison and local government buildings. Council is in the midst of talks about what they envision for the city.
Whatever they decide, there’s no question the elimination of LGA would have profound effects.
“It would definitely impact our service level of what we would be providing to our citizens,” Berg said. “This is the discussion we’re having with the council about what they think are the core services of the city.”
From the St. Cloud Times:
The reduction of 40 full-time staff positions means the city of St. Cloud has already absorbed the $1.2 million cut from Local Government Aid this year.
From the Crookston Times:
[In respose to aid cuts, the city of Crookston plans to reduce the] annual general fund contribution to the street improvement fund by $100,000 [and reduce] annual general and special revenue fund capital expenditure funding by $75,000, [which is spent on projects like] new squad cars, playground equipment, the fire truck replacement fund, or various projects at the library.
From the East Otter Tail Focus:
Overtime pay freezes, shutting down the library a day a week, reduce summer rec funding and delay purchase of a new squad car—these are among the cuts facing the city of Perham…If the financial picture doesn’t improve in 2011, the city could consider eliminating the summer recreation contribution completely. Also on the chopping block, potentially, is the $10,540 allocation to senior citizen services.