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Dec 19, 2008 5:10 pm US/Central
Pawlenty Plans To Cut Funds For Local Governments
ST. PAUL (AP) ―
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Pawlenty spokesman Brian McClung says the governor will stick to his priorities of military and veterans programs, public safety and K-12 education.
AP
Gov. Tim Pawlenty took a scalpel to state aid for cities and counties, human services programs and higher education on Friday, trimming $271.4 million in unspent state money to fix a $426 million near-term deficit.
The cuts will withhold $13 million from Minneapolis, $5.7 million from St. Paul, $1.9 million from Rochester and $1.7 million from Duluth when state aid checks go out at the end of next week.
Also on the hit list: the University of Minnesota and Minnesota State Colleges and Universities system, which will lose $20 million each, and $73 million worth of outlays for human services programs including medical education, hospitals, chemical dependency, mental health and adoption assistance.
The Republican governor used an executive power called unallotment to pull back scheduled spending after draining the state's $155 million rainy day fund, and warned that more cuts might be needed early next year as the recession eats into a $34.6 billion budget that runs through June.
"It's not ideal or positive, but I think in the light of the crisis that we're facing we tried to make those unallotments or decisions that would be least harmful," Pawlenty said at a Capitol news conference.
The picture is even worse -- a projected $4.85 billion shortfall -- for the upcoming two-year budget cycle.
Totaling $110 million, cuts to cities and counties were smaller than some had feared, but organizations representing cities said they will still cause deep pain in some places. Cities are caught with few options because their budget years end on Dec. 31, forcing those who have reserves to dip into them and others to face less palatable choices.
"In some cases, police and fire are going to be affected -- it's just inevitable," said Jim Miller, executive director of the League of Minnesota Cities.
Spared were cities with fewer than 1,000 residents and four small counties. Pawlenty said they are less able to absorb cuts, but larger cities and counties should freeze salaries, eliminate unnecessary departments -- as examples, he suggested offices for cultural affairs, human rights or environmental sustainability -- and do whatever else they can to avoid affecting public safety.
"There are lots of options -- not in all cities, but in many cities -- where they can go to reduce spending or to tighten their belts before they impact police or fire," the governor said.
Reaction from top Democrats was muted.
Democratic House Speaker Margaret Anderson Kelliher said public schools were shielded from the first round of cuts but might not be so lucky if the near-term budget hole gets bigger. State economist Tom Stinson has predicted that the short-term deficit may grow by $30 million to $70 million.
"The hard choices may not be over, even for this biennium," said Kelliher, DFL-Minneapolis.
Pawlenty's cuts also include $42.2 million from unspent state agency funds in January. More detail will be known after departments outline their recommendations for reductions by Jan. 1. Military and veterans affairs, public safety and K-12 education don't have to make those cuts.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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