Budget Cuts -- How Cities are Coping

The governor cut it last year and he plans to cut it even more in 2010-2011. No, not his hair. Everybody's talking about LGA (Local Government Aid), but can anyone really explain it? Why do some cities get it and others don't? Why do cities need it?

LGA goes to cities with a low tax base. In Bemidji, only about 49% of the properties in the city are taxable. With 51% tax-exempt, we thank LGA for parks, police, libraries, fire protection....

The Coalition of Greater Minnesota Cities and the city of St. Paul launched a website earlier this year to explain LGA and encourage support for it. Their site ThankLGA.org, provides "LGA Basics," tracks media reports and offers a place for citizens to "tell your story."

The most interesting page on the site is perhaps the "City Stories" where Mayors and Finance Directors from cities across the state explain what they have done to respond to cuts already made and what they will do if additional cuts are made.

It also lists the amount cities stand to lose. Here are the figures for Bemidji
2008 LGA Unallotment: $241,303
Governor’s Proposed 2009 LGA Cut: $320,922
Governor’s Proposed 2010 LGA Cut: $670,141

City officials are asked to "provide a few examples of what services in your city are equivalent to the 2009 LGA reduction." Bemidji's answer:
* Nearly 6 police officer positions
* The city’s entire capital equipment purchases
* Nearly 50% of the city’s parks and library budget
* 9% of the city’s public safety budget

How will the City make up this reduction? Remember the Street light fee idea? That fee would have been assessed on all properties--including the tax-exempt properties. Think the idea might come back?