The Editor’s Note reads:

Several city officials went to St. Paul on Wednesday for hearings with state legislators on possible cuts to Local Government Aid during the current budget biennium, which ends in June 2009. The News asked interim City Administrator Joel Walinski to write a column about the trip to St. Paul. It is below. It will also be shared in his weekly memo.

The State of Minnesota budget forecasts presented yesterday estimated the State’s current shortfall of $426 million in FY 2008-09 and the future forecasts of $4.847 billion in the coming biennium. The implications on the City of Northfield’s budgets have yet to determined. The City currently receives $2.89 million in Local Government Aid (LGA). This makes up twenty-eight percent (28%) of the City’s general operating fund. Depending on the actions taken by the State this amount or a portion of this amount could be unallocated for the remainder of FY 08-09 or reduced in future years.

The City Council in recent years has developed a reserve fund to ease the impacts of unallotment or under funding of LGA, however careful consideration of existing and any new spending will be needed to address this long-term if reductions in the LGA amounts should occur. Although the 2009 Budget work is completed, Finance Director Ms. McBride and I are beginning a more thorough review of current City spending patterns and service levels. The goal is to present a more detailed look at the City’s funding for providing various services to the Mayor and Council in February/March of 2009.

That might be so but the fact remains that most poeple are simply turned off by the process.

How else would you explain that close to 50% ofof the people don’t even show up to vote??

There is a sense of helplessness that “we can’t do anything anyway”, which has given the few that still care all the power.
Taxes are a prime example of the overwhelming power of government to control our lives.

I just received my property tax bill and they went up again, despite falling home values????

Yes I can protest and I will, but does anyone seriously belief that it will be lowered?

90% of elected officials are in for a career and not for principal.
Politics is a business and we the pay the price.

IMHO this is a sign that most people feel helpless when it comes to influence taxation, this includes me.

Thanks!

Sometimes emergencies result in creative solutions!

We have already received notice of our 2009 state aid amounts. The dilemma is what the potential cuts could be and when they would be made. It is possible that the governor -- and the legislature could “un-allot” 2009 aid in 2009. This would cause local governments to have to make mid-year budget reductions.

The City does have a $722,000 “revenue stabilization” reserve for this very purpose. This at least allows us some wiggle room should the cuts occur suddenly.

Mac

So when the shit hits the fan today at the Capitol, will we have to wait till the end of the legislative session in May 2009 before we know how much LGA money the city will receive?