Local government aid cuts: Which cities will lose the most?

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

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    LGA mistake

    The minneapolis numbers should be 8.5 million and 21.3 million. I think you referenced the statewide totals that were in the line above mpls on the LMC spreadsheet.