News reports from across the state are echoing the same theme: cities continue to make difficult decisions as they budget with fewer LGA dollars. In many cases, these decisions will have a lasting impact on the strength and affordability of Minnesota’s communities. Below are just a few snapshots of what LGA cuts look like.
According to the Pioneer Press, metro area libraries are feeling the sting of state aid cuts. Because most libraries are funded through city revenue streams, the loss of LGA over the past decade has dried up library resources. While most libraries across the state have reduced hours, book-buying budgets, and employee costs, some small metro libraries may consolidate with those in nearby larger cities or are already shrinking in size to accommodate sharing space with other city programs, such as recreation centers. These service reductions come during a time when many libraries are reporting their largest usership rates.
The Star Tribune reports that the city of Excelsior may lease valuable lake-front property and tear down city hall to make room for a multi-level development that could house the city’s offices above commercial space. In other creative cost-cutting measures, the city of Duluth may sell its steam plant, the city of Anoka may move a baseball diamond to school property and sell the vacant land for development, and the city of Ely may pursue a local sales tax.
The Red Wing Republican Eagle notes that the city of Red Wing is well-positioned to weather state aid reductions in 2010—all because of proactively stashing $700,000 into a rainy day fund, which was generated in part by reducing services, delaying needed capital improvements, and laying off 30 employees. Having regained some stability after withstanding years of LGA cuts, the city plans to pursue an extensive restructuring plan that will make city operations less costly.
And finally, the Winona Daily News reports that prior to the legislature and governor approving smaller LGA cuts, the city of Winona was considering one of two unpopular options: either close the community’s aquatic center or shut off funding for a recreation center and senior center. With smaller state aid reductions than anticipated, the city will likely get by without making such severe cuts, but as Winona’s community services director notes in the report, future additional cuts to LGA will make sparing valued programs such as parks and libraries increasingly difficult.