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Posted at: 01/28/2009 3:56 PM
Updated at: 01/28/2009 6:59 PM
By: Dietrich Nissen
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Cities Face Major Losses in State Funding
 

(ABC 6 NEWS) - The League of Minnesota Cities released a report today indicating how much local government aid cities all across Minnesota will lose if Governor Tim Pawlenty's budget plan is passed.

Blooming Prairie Administrator Michael Jones looked at the proposed cuts and says he's not worried.

"I’ve not looked at this and said I’m going to be a chicken little and run around and screaming that the sky is falling,” says Jones.

The small city is expected to lose nearly $232,000 over the next two years, which is 30% of the aid they were supposed to get.

"We just have to make some adjustments,” says Jones.

In Austin, Mayor Tom Stiehm says he'd like to see changes made to the budget plan.

"This is too much,” he says. “We can't afford to do this."

Austin could lose nearly 25% of its aid money in the next two years.

"Right now, $2 million is pretty severe and if it comes out to half of that or something like that maybe that's something we can deal with,” says Stiehm.

Both men say if Governor Pawlenty's plan passes, cuts will likely be made in street repairs and public recreation.

"We've been talking about things like a dog park for a couple of years now. I’m sure we're going to put that off,” says Stiehm.

While the cuts may not seem dire yet, the League of Minnesota Cities says the impact will certainly be felt.

"It would mean very significant and very visible changes; reductions in services,” says Executive Director Jim Miller.

According to the report, over the next two years, Rochester may lose 91% of its aid while cities such as Lanesboro could lose 50%.

"I’m really just hoping that we can tighten the belt on a few things, push some things into the future and make this happen without reducing services at all,” says Jones.

For now, legislators will be working with local officials to try and figure out a way to work around the cuts.