Imagine trying to balance your checkbook with no idea as to how much money you started with.

That's what agencies in Austin, and throughout Minnesota, are trying to do right now.

A $375 million cut in Local Government Aid (LGA) proposed by Governor Tim Pawlenty would mean $933,000 less for Austin this year and $1.8 million less in 2004.

This has forced the city council to come up with a number of budget proposals to offset the loss of funds.

A previous proposal from City Administrator Pat McGarvey included cuts in city personnel. But the proposal discussed at Tuesday night's work session focused more on cuts to agencies and services.

A 50 percent cut to all outside agencies was a part of that proposal. Mayor Bonnie Rietz, however, said that the council wouldn't do anything that drastic.

"That's not going to happen," Rietz said. "If we do make cuts to outside agencies, we hope to do it in increments. We would never cut an agency by 50 percent."

That's good news for organizations such as Mower County Seniors Incorporated.

The senior center gets $30,000 of their approximately $200,000 budget from the city.

Executive Director Paulette Anderson is anticipating cuts of some sort, but said that their budget is already tight.

"We have a little money in reserves, but that won't last long," Anderson said. "If we were to put in a water heater or water softener, if we had a plumbing problem, I didn't budget those things in."

However, she said she is aware that everyone is in a difficult situation, and the senior center was willing to do its part.

"I understand that there may be some cuts," she said. "I'm hoping they're along the lines of 10 to 20 percent."

Anderson said that she is looking for federal grants to help with the adjustment, but other sources of revenue may be necessary. Increasing membership, raising fees for classes or charging for more activities are all possible ways to make up the difference.

"Right now for the members there are free computer classes," she said. "Maybe we'll have to start charging for that sort of thing."

George Brophy, President and CEO of the Development Corporation of Austin (DCA), said the DCA doesn't have as many options for off-setting a decrease in funds. With only two employees, Brody plus a secretary, the areas available to cut costs are few.

Of the outside agencies receiving city funds, the DCA gets the most at $75,000 dollars per year. But with an operating budget of $200,000, any substantial cut to city aid amounts to a large percentage. That money goes towards operations of the agency, which is responsible for helping mainly local industrial businesses get started through investment. These investments are high risk, and if the city cuts too much of their budget, it leaves little room for recovery if one of those businesses fails.

Brophy said that he is not happy to see a 50 percent cut on paper, even if it doesn't go through. He said that once something is on paper, it may change a little for better or worse, but often that initial figure is used as a basis for those changes.

While Brophy is nervous, he thinks that the DCA will make it.

"To the degree that (the cuts) are not too severe, we'll survive," he said.

The city council will continue discussion at their next meeting on March 17. McGarvey is working on a proposal that will combine elements of the two previous ones. Rietz encourages input from citizens.

But ultimately, no one can act until the legislators come to a decision.

Rietz and McGarvey returned yesterday from a Coalition of Greater Minnesota Cities two-day membership conference. Members of the coalition met with legislators, urging them to shift some of the burden from out-state cities to the suburbs. They proposed an aid cut of $191 million, rather than the $375 million Pawlenty has proposed.

The easing of tax levy limits was also discussed. That would give cities more freedom to create revenue, which would in turn help out local agencies.

"The levy limits issue is still very much on the table," Rietz said. "It might depend on how deep the cuts in LGA are."

Employees at the senior center are hoping that their members will put the pressure on legislators.

Senior dining program coordinator Blanche Hollerud made an appeal to seniors.

"Now is the time to contact your legislators," she said into a microphone. "It's very important that those people up at the Capitol know what it means to the seniors here in Austin."

Matt Merritt can be reached at 434-2214 or by e-mail at :mailto:matt.merritt@austindailyherald.com