Steve Perry in PIM and Paul Demko in the Minnesota Independent detail the crippling impact of LGA unallotments, city by city. In Minneapolis, that’s a 19% cut in LGA this year and a 39% cut next year — but that’s not the worst. Rochester faces a 28% cut this year and 59% next year. With cuts of this magnitude affecting not only the Twin Cities, but cities and towns across the state. Property tax levy limits will be lifted, but that’s not going to save cities.
“We lost money in 2008 [through unallotment],” notes [Gary] Carlson [of the League of Minnesota Cities]. “We will lose money in ’09. Couple those with the 2010 cuts and cities have three years worth of cuts to levy in one year.
“Practically speaking, a lot of cities have told us they can’t do that. With the economy in the shape it’s in, a lot of cities can’t raise taxes that much. They’re going to have to absorb the cuts through budget reserves in the cases where they’re able to do so, but also through program cuts and personnel cuts. There will be some huge [city budget] cuts coming.”
The League of Minnesota Cities provides a detailed, city-by-city breakdown.
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