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(ABC 6 NEWS) - A $426 million shortfall in the state budget may hit home sooner than you think.
Governor Tim Pawlenty met with mayors across the state about cutting back on state aid.
That could lead to wage cuts, hiring freezes and possibly even layoffs.
Olmsted County officials expected to have a $3 million check in their hand from the state this Monday. But without that aid, they'll have to cut costs.
"Everything is on the table right now so it's going to be a tough year ahead of us,” says County Board Chair Dave Perkins.
Perkins says they'll be discussing hiring freezes, wage freezes and layoffs.
"There are some programs we are going to be eliminating all together. That's probably the best route right there is eliminating the entire program,” he says.
Earlier this week, they froze their capital spending and hiring.
That hiring freeze even includes critical positions like snow plow drivers in the dead of winter, sheriff deputies and public health nurses.
But Olmsted County is not alone.
"The city of Albert Lea is planning for 2009 to do what we call a hiring stall to any position that comes open,” says Albert Lea’s City Administrator Victoria Simonsen.
By freezing positions, Albert Lea hopes to make save enough cash to avoid layoffs.
And in Austin, most employees are currently under a union contract, but cutbacks could be still be on the horizon.
Rochester Mayor Ardell Brede who says there could ultimately be layoffs at the city level as well.
So big changes are ahead for state and local governments.
Most agencies say they will also try to push for retirement incentives as a way to open positions before turning to layoffs.
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