Massive state cuts looming

Published 12:13 pm Saturday, February 21, 2009

Nearly 200 people from south central Minnesota contributed idea after idea Friday about what to do concerning the projected state budget deficit.

In what was one of several town hall meetings to take place around the state this week, people associated with city and county governments, health and human services, education, long-term care, court and legal services, and other children and family services programs bore down on Albert Lea City Hall to share their opinions with a group of state legislators.

The legislators, from both the Minnesota Senate and the House of Representatives, came from across the state and from both sides of the aisle to listen to the opinions. Local legislators Sen. Dan Sparks and District 27A Rep. Robin Brown, both DFLers, were also on the panel.

Email newsletter signup

For two and a half hours, people spoke out about how Gov. Tim Pawlenty’s proposed budget cuts — which would make up for the projected $4.8 billion state deficit — and how it would impact their services and programs, especially during a time of economic distress and an actual increased need for services in many areas.

Before testimony was taken, a summary of the budget was given to the audience. The presentation stated that the governor’s budget specifically proposes to cut $1.45 billion in health and human services, $1.3 million in K-12 education shifts, $973 million in appropriation bonds, $920 million in federal stimulus funds, $468 million in local government aid, $313 million in higher education funding, $185 million in other spending cuts and $55 million in fees and payment changes. A majority of the audience members knew specifics about how those reductions would affect their entities.

In response to those numbers, people signed up to speak about a specific topic they were directly affected by or were passionate about.

Cities and counties

In what was the first testimony of the meeting, Albert Lea City Manager Victoria Simonsen explained the challenges that Albert Lea is facing with projected local government aid cuts.

Simonsen said Albert Lea is a regional center for south central Minnesota and Iowa, and it’s important the city offers an appearance that’s representative of the state.

Local Government Aid (LGA) pays for parks, street repair, police and other basic services citizens expect to have, she said. Though the city has expanded in square footage in recent years, the city has fewer employees.

“The ability to pay for services has diminished, but the need for services has not,” Simonsen said.

A reduction of LGA will not only affect homeowners but business owners too. The best way a city can become less dependent on local government aid is to grow tax base.

Austin City Administrator Jim Hurm expressed a similar sentiment as Simonsen and Dorman.

He said the proposed 2009 LGA cuts alone are the equivalent of the entire budget of the city’s fire department, more than the entire budget of the library, half of the police department, and equal to half of the budget of the entire parks and recreation department.

Cuts will “clearly” affect the services Austin can provide, he said.

Mower County Coordinator Craig Oscarson said county governments are in essence supposed to be an arm of the state government, but he’s worried about the impact on county program aid. He said Mower County is looking at a $1.15 million cut on top of unallotment in 2008.

He talked of program cuts and even employee reductions. He said once levy limits are lifted, Mower County residents could end up seeing a double digit tax increase.

Oscarson said he’s worried about core services. He said Mower County is considering moving to a four-day work week. This could save between $50,000 and $75,000.

Health care

Steve Waldhoff, Albert Lea Medical Center chief administrative officer, said rural health care providers such as ALMC and the Austin Medical Center are economic engines that greatly impact a community.

ALMC is the largest employer in Albert Lea with 1,100 people on staff, he said.

“It can be said that rural health care providers are the cornerstone for economic development,” Waldhoff said. They attract business to the state.

He said while the medical center is willing to accept its fair share of budget cuts, he thinks Pawlenty’s budget disproportionately targets health care. He encouraged the legislators to include hospital leaders in crafting budget solutions.

AMC chief administrative officer Adam Rees said the governor’s proposed budget would have a “devastating impact on Austin Medical Center” with a $4.7 million cut.

Others talked about the effects of cutting Minnesota Care benefits and basic dental care.

Who else spoke and what did they say? Look to albertleatribune.com for more.