State aid cuts could potentially wipe away much of the new revenue the county is expecting through a 2011 tax increase.

If about $1.2 billion in state cuts proposed by the GOP controlled Legislature pass, the county would lose out on about $528,000 in County Program Aid and Market Value Credits to the county.

However, the state still has a lot of work to do on its final budget. Gov. Mark Dayton still needs to propose his budget.

“It may end up being larger than this. It may end up being smaller than this. We don’t know,” County Coordinator Craig Oscarson said.

If the county board wishes to make up that difference entirely through taxes, it would mean a 3 to 4 percent tax levy increase. The increase for 2011 was 3 percent.

The county board can no longer increase this year’s levy, so the board would have to make up the difference through cuts or through reserves.

“Until we really get a final total, it’s almost too reactionary to start right now, other than we’ve got to be prepared for something,” Oscarson said.