04-13-1992 Council Packet - Laserfiche WebLink

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C r; ^ -. ■' fv'.femw ia*’ ^ W. »' ;p:.. i if >■ i-: 'rl-^ . ■f* is:..-- lil^' ■ ^S#-' ,fe'^rfS^- • i £i '.f&lf' VV’i-if^ a:,vir' ; ^ V- »• f.r*V ■f^'- -W ciatlon of ropolitan municipalities Legislative Contact MAR ^1932 Alert March 9, 1992 TO:Mayors, Legislative Contacts and Managers/Administrators FROM; Roger Peterson, Director of Legislative Affairs Vern Peterson, Executive Director RE:GOVERNOR'S BUDGET PROPOSAL AND STATUS OF MAJOR METROPOLITAN AREA PROPOSED LEGISLATIVE BILLS I. GOVERNORS BUDGET HAMMERS CITIES! CUTS TO CITIES OUTRAGEOUS! The Governor's overall budget proposal uses accounting gimmicks for savings of $178 million for schools, reduces 'rainy day fund' by $140 million, cuts state agencies and higher education by $164 million, and cities LGA by $71.6 million. City aid cut of $71.6 million is 23\ of LGA, equalization aid, and city disparity reduction aid. For cities receiving these aids, this equals an 8%~plus cut of Revenue base (i.e. aids plus levy). Schools, Counties, Towns, Special Districts, get ZERO cuts. They are held harmless! Not all cities are cut. These receiving only HACA have no cut. Is this divide and conquer? Enclosed is a preliminary run showing the impact on AMM cities. The AMM position at this point is that cuts to cities are unnecessary. Additional use of the rainy day fund may cause small short term state borrowing but that would have no impact on the state's bond rating and would certainly be preferable to the major impact the cuts would have on the general public health and safety if cities are forced to make large cuts. Cities should contact their legislators and relate how this may -1- 183 university avenue east st paul, minnesota 55101 (612) 227-4008