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31 <br /> MEMORANDUM <br /> DATE: January 30, 2002 <br /> TO: Mike Mornson,City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: GOVENOR'S PROPOSED BUDGET CUTS <br /> As we are all aware,the State Legislature will discuss their$2 billion dollar budget <br /> shortfall in the in their upcoming session. <br /> Current proposals include balancing the budget with a combination of revenue <br /> enhancements (gas tax, cigarette tax,etc.) and a reduction in State spending. The cuts <br /> being discussed could have a significant affect on all Cities including St. Anthony. At <br /> this time, we should focus on the fact that they are proposals that are not set in stone. <br /> Under the Governor's proposed cuts Local Government Aid(LGA) would be impacted <br /> significantly. His proposal has the City of St. Anthony receiving the following cuts: <br /> 2002: <br /> Growth Based LGA Cut $ 97,751 <br /> LGA Base Cut $ 43,514 <br /> MV Credit Reduction 8,954 <br /> Total Proposed Cut $150,219 <br /> 2003: <br /> Additional Proposed Cut $ 55,254 <br /> Total 2 year reduction in Aid $205,473 <br /> For the sake of discussion, let us assume that the Governor's proposal was passed. The <br /> issue on hand becomes, "How does the City of St. Anthony deal with the potential loss <br /> of revenue totaling$205,473?" <br /> Ultimately, it means that St. Anthony would have to make adjustments to its General <br /> Fund operating budget through revenue enhancements or budget cuts. <br />