By AMANDA LILLIE and JASON SCHOONOVER

The latest round of proposed state cuts may fix part of the state’s budget problem, but the cuts will shift the burden — to the taxpayers.

According to County Coordinator Craig Oscarson, further cuts to Local Government Aid and County Program Aid will put more pressure on the taxpayers.

“They (the Legislature) should know as well as anyone it’s resulting in a property tax shift,” he said.

State Republicans in control of the House and Senate said Wednesday they plan to cut $1 billion from the state budget — about one-sixth of the projected deficit for the next two years. Aid to local governments, colleges and recipients of social service grants would bear the brunt of cuts.

Should the cuts hold up, Oscarson said the county board will either have to look to a significant tax increase or cuts to services. Oscarson said every dollar cut to government aid equals about a 63 cent increase in property taxes. Tax increases would vary base on potential service cuts.

Sen. Dan Sparks, DFL-Austin, said the Republicans’ proposal includes $1.2 million in cuts to Austin’s LGA, and that may not be the end of it.

“We’re not even halfway there,” Sparks said. “This could be a portion of what’s to come.”

The Republicans’ proposed cuts are just the first step in budget negotiations, Oscarson said.

“The GOP just fired the first shot over the bow,” Oscarson said.

“It’s a chess match right now,” he added.

Gov. Mark Dayton is expected to release his budget soon, and negotiations will continue throughout the Legislative session.

How much CPA is cut remains the key question. Oscarson said the Republicans’ proposal is still vague.

Oscarson questioned if the Legislature will finally work to reform unfunded mandates.

Mayor Tom Stiehm said because of the city’s backup plan in case of LGA cuts, he is confident the city will be able to sustain the blow.

“When we get cut, we’ll look at services and we’ll look at taxes,” said Stiehm. “If (the Legislature) cuts it, they’ll have a plan and give us time to adjust our budgets and all that.”

Both Sparks and Rep. Jeanne Poppe, DFL-Austin, expressed disappointment in the Republican’s plan thus far. Both legislators reiterated that this proposal is only one-sixth of the total deficit, and if the GOP is only looking to make cuts there is a lot of work left to be done.

“The worst part is … this is a proposal that partially covers what they need to get done,” Poppe said. “We might still be needing to wait for the other shoe to drop.”

“I’m not sure this is the full picture,” she added.

Although LGA comprises over half of the city’s budget, Stiehm said the city has successfully dealt with previous cuts to LGA and is ready for more even if its not the ideal situation.

“We’re prepared,” said Stiehm. “We’ll be okay.”

The county is expecting about $2 million in aid in 2011. When the commissioners set the county’s 2011 budget and levy in December, they cautioned further cuts would hurt and could affect key services like sheriff’s patrol or snow removal.