States Budget Shortfall Could Be Felt At Local Level

Now to our other top story tonight:Minnesota Governor Tim Pawlenty, along with other governors met with President Elect Barack Obama today to discuss how economic problems are affecting state budgets.Minnesota's budget forecast is due on Thursday. Right now, all we know is to expect a bleak picture.A state budget shortfall will be felt at the local level... but at least not immediately for some local city governments.News 12's Erick Lind takes a look.The announcement that the country is officially in a recession will be felt all the way through the government funding ladder.Cities like Elysian have already seen their local government aid cut by over 50-thousand dollars since the year 2000.Any more would put the town in an even tougher spot.Elysian City Administrator Pat Nusbaum says, "The impact on us will be quite a bit for 56-thousand dollars, or even if you lost 20-thousand that makes a lot of difference in a small community, so I suppose all you have left to do is cut services, and we're bare bones right now.",,,LeCenter city administrator Chris Collins says, "We went up substantially from 2008 to what we've been at least indicated we would for 2009, 136-thousand dollar increase so whatever the formula is, is good to LeCenter."LeCenter isn't alone in receiving an increase this year.Waterville also saw a projected increase, which can help get projects done.Waterville city administrator Teresa Hill says, "That helped us say, out of our reserves a little more and try to funnel a little bit more into our streets, fixing up our streets and infrastructures. Those things that get pushed off until they absolutely have to be done."The problem is that the state budget is finalized in late June.That means some of the L.G.A. could be taken away next summer.Collins adds, "They need to be prepared for that. Doing a project or not doing a project is one of the only things we can cut out. There's just nothing else we can cut back on."The state will announce Thursday how bad of shape the budget is in, so until then administrators will have to hold their breath.In LeSueur County, Erick Lind, News 12.



 


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