Red Rock On Air

The release of Minnesota’s budget forecast last week appears to be setting up another heated session when the legislature returns to the capitol.

The state is projected to face a $1.2 billion deficit over the next two years and an even higher figure during the 2012-2013 session.  State Representative Tim Faust of District 8B says this means the legislature is going to undoubtedly make cuts.

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But where will the cuts come from?  Last year, over $400 million in cuts were made from city and county aid.  Cities like Pine City have been forced to adjust their budgets to make up for cuts in Local Government Aid.  Pine City Administrator Don Howard said at last week’s city council meeting that the city was forced to raise the levy over six-percent because it did not receive LGA payments.

Last year the legislature and governor could not agree on how to balance the budget, and Governor Pawlenty ultimately used his unallotment authority.  The Governor said last week that it may be necessary to unallot a portion of December 2009 local government aid, and option Faust opposes.

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The provision representative Faust speaks about allows Pine County to use roughly $300,000 in a timber reclamation fund to hold down property taxes for homeowners.

The legislation returns to session on February 4th.