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<br />Jo Thielin~' <br />From: <br />Senti <br />To: <br />Subject: <br />Importance: <br /> <br />THOMAS GAMEC [gamec12@msn.com] <br />Tuesday, January 27, 20094:42 PM <br />Jo Thieling <br />Fw: [mayorassocj Governor Proposes Cuts to LGA in Budget <br /> <br />High <br /> <br />..... Original Message ..... <br />From: Clark. Elaine <br />To: Mavor's Association <br />Sent: Tuesday, January 27,20091:37 PM <br />Subject: [mayorassoc] Governor Proposes Cuts to LGA in Budget <br /> <br />Governor Pawlenty released his 2.010-11 budget proposal earlier today. The most recent forecast shows a $4.8 billion <br />deficit for the biennium. The Governor's budget cuts 2'009 Local Government Aid (LGA) and Market Value Homestead <br />Credit (MVHC) reimbursement by $99,6 million. The 2009 cuts to LGA would be taken from the aid amounts certified <br />last year for 2009. According to the proposal, the reduction to 2010 aid and credit is $185.8 million. In both 2009 and <br />2010, the cuts are made as a percentage of city revenue base (certified aid plus levy). All cities will be subject to cuts. <br />Aids and credits will be reduced by $148 million on an ongoing basis starting with 2011 aids according to the Governor's <br />proposal. A city by city list of the Governor's proposed aid and credit cuts will be available on the League's website <br />shortly. <br /> <br />As part of the solution to the 2.003 state budget deficit, 2003 LGA was reduced by $121 million while MVHC <br />relmbursementwas cut by $2.0 million. In 2.004,LGA wa~ cut by $149 million and the cut to MVHC reimbursement was <br />$20 million. While city aids and credits were about five percent of the state's budget at that time, the cuts to these <br />programs represented about ten percent of the budget solution. League staff is working to determine all of the details <br />of the governor's current budget proposal to fully understand the role that aid and credit cuts are taking in the budget <br />balancing recommendations from the Governor as well as other elements of the proposal that may impact cities. <br /> <br />The governor's proposal does not include any reductions to police and fire aids. <br /> <br />The Governor's budgetproposal is the first step in the budget process. The legislature will consider his <br />recommendations over the next several months as it debates how to balance the budget. . <br /> <br />On Friday, January 30th, the League Is hosting a webinar on the Governor's budget proposal. During thewebinar, League <br />staff will be providing more detailed information on the proposal and what aspects of it will impact cities. TO <br />participate, please register online by 11 a.m. on January 30th, Go to: htto:/ /www .Imc.or~. There will also be detailed <br />Information on the Governor's budget in Cities Bulletin articles .and on the website soon. <br /> <br />For questions on the proposed LGA and MVHC reimbursement cuts, please contact one of these League staff members: <br />Gary Carlson 651-281-1255 lI!carlson@lmc.org <br />Rachel Walker 651-281-1236 rwalker@lmc.org <br />Lena Gould 651-281-1245 Illould@lmc.or~ <br />Jennifer O'Rourke 651-2.81-1261 iorourke@lmc.orJ~ <br /> <br />You are currently subsciibed to mayorassoc as: gamec12@msn.com <br /> <br />1 <br />-3- <br />