Local government aid cuts: Which cities will lose the most?
Wednesday, June 17, 2009 at 1:35 pm
- 2 Comments
Gov. Tim Pawlenty wants to cut nearly $200 million from the Local Government Aid program as part of his plan to eliminate the state’s $2.7 billion budget deficit. While the fiscal hit to the program is less than feared (Pawlenty had originally proposed whacking $450 million from LGA), it will still present a significant fiscal problem for cities across the state.
The proposed cuts are equivalent to 3.3 percent of the program’s funding in 2009 and 7.6 percent in 2010. Towns with populations under 1,000 are exempt from the cuts. Many municipalities in greater Minnesota with shrinking populations rely on LGA to bolster their finances, as do larger cities with high levels of poverty.
The League of Minnesota Cities has posted a spreadsheet breaking down Pawlenty’s proposed cuts to local government aid. While a city’s overall budget needs to be scrutinized in order to gauge the significance of the hit, in sheer dollar amounts here are the ten municipalities slated to lose the biggest chunks of change:
1. Minneapolis: $44.6 million in 2009; $102.4 million in 2010
2. St. Paul: $5 million in 2009; $11.6 million in 2010
3. Rochester: $1.7 million in 2009; $3.9 million in 2010
4. Duluth: $1.5 million in 2009; $3.5 million in 2010
5. St. Cloud: $1.2 million in 2009; $2.7 million in 2010
6. Winona: $531,000 in 2009; $1.2 million in 2010
7. Moorhead: $489,000 in 2009; $1.1 million in 2010
8. Brooklyn Center: $464,000 in 2009; $1.1 million in 2010
9. Owatonna, $454,000 in 2009; $1 million in 2010
10. Faribault: $392,000 in 2009; $905,000 in 2010
2 Comments
Comment posted June 20, 2009 @ 1:59 pm
the fiscal hits in 2010 are really pretty big. maybe economic activity will pick up by then. maybe we’ll take a little more tax from those few who are still doing fabulously well.
You can’t cut your way to prosperity short-run.
In the medium run we should reconsider our balanced budget requirement. Both options available to cover a budget gap – having to cut spending and/or raise taxes – those options are both bad ones when we’re still contracting economically. They’ll make the recession worse, while concentrating the latest pain on vulnerable citizens who need state services and public employees who provide those.
Comment posted July 8, 2009 @ 10:23 am
He should cut more. He shouldn’t chicken out with just $200 million. The deficit is $2.7 billion.
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