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State Deficit Will Mean Cuts For Local Governments

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Dec 9, 2008 8:02 pm US/Central

State Deficit Will Mean Cuts For Local Governments

ST. PAUL (AP) ― Gov. Tim Pawlenty and legislative leaders said cuts to cities and counties are a sure thing as they address a $426 million short-term budget deficit.

Payments to local governments are among the biggest available unspent items in the current budget.

The Republican governor and legislative leaders left no doubt they will target those dollars as they search for more than $270 million in trims, after using up a $155 million rainy day fund.

Legislative leaders said there's no way to fix the near-term deficit without cutting some local aids.

Democratic House Speaker Margaret Anderson Kelliher said legislative tax panels will start working out specifics in meetings that begin on Wednesday.
Minnesota also faces a $4.85 billion deficit for upcoming budget cycle that runs through June 2011.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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