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ALBERT H. QUIE <br />GOVERNOR <br />The Honorable Thomas G. Gamec <br />Mayor, City of Ramsey <br />15153 Nowthen Boulevard N.W. <br />Ramsey, Minnesota 55303 <br />STATE OF MINNESOTA <br />( )PI'I CE U,: THE GOVERNOR <br />ST. PAUL 57)1Z 5 <br />October 20, 1980 <br />Dear Mayor Gamec: <br />Thank you for sharing your Resolution Number 80 -77 passed by the Ramsey <br />City Council regarding the shortfalls in state revenue. <br />I appreciate your comments commending my handling the potential deficit <br />in Minnesota's budget. As you state in your resolution, there are some <br />legislators who do not understand that the decline in revenues was caused <br />by the recession that we are now experiencing; however, I believe that <br />the people in Minnesota realize the cause of our anticipated deficit and <br />accept the cutback in spending that is necessary. Originally, I had <br />hoped that the state government itself could absorb the anticipated <br />deficit but when the shortfall grew to $195.1 million, it was impossible <br />for state agencies to bear the burden of this size alone. The prospect <br />of this deficit forced me to make one of the most difficult decisions <br />of my administration. I had no choice but to consider the reductions <br />to local government and school districts also. <br />Your resolution questions the manner in which the reductions in local <br />government <br />worked very a closely c with s the r League r of n Minnesota DCities, thefAssociation <br />of Minnesota Counties, the Minnesota Association of Township Officers, <br />and the Municipal Finance Officers Association in arriving at the method <br />that was used in calculating the reductions for the cities. Recognizing <br />that any reduction would cause hardships, the method of determining the <br />reduction in aids was consensus of those groups advising the Department <br />of Revenue. The method used was an attempt to treat diverse governments <br />in a manner that was fair and agreeable to all. <br />The present law distributing local government aids expires with the <br />payments to be made in calendar year 1981. The Legislature that convenes <br />in January will be enacting legislation that will distribute state aids <br />AN EQUAL OPPORTUNITY EMPLOYER <br />