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Published February 15, 2010, 09:19 PM

MN Cities Deal With Less Funding

City leaders across Minnesota say they may have to drive up property taxes or cut services. This comes after Governor Tim Pawlenty announced today that he's planning on cutting more aid to local governments to make up the state's deficit.

City leaders across Minnesota say they may have to drive up property taxes or cut services. This comes after Governor Tim Pawlenty announced today that he's planning on cutting more aid to local governments to make up the state's deficit. The state is facing a more than one billion dollar budget shortfall just in this term.

Pawlenty says, "Minnesota has experienced a multi-billion drop in revenues as a result of the economy."

Today Governor Pawlenty announced his plans to make up some of that money by cutting even more aid to local governments.

East Grand Forks Mayor Lynn Stauss says, “LGA makes up one-third of East Grand Forks' budget.”

Stauss says over the last three years the city has been shorted $800,000 from the state.

“We've had to cut a few people in some positions, but we've mainly held the same force as far as fire, police,” says Stauss.

However, if Pawlenty continues to cut aid to local governments, Stauss says the situation could change.

“That's a concern that probably there will be a cut with the employees. If not, then you also have to look at the taxpayer. We might have to increase taxes,” says Stauss.

Stauss, along with council members Dick Grassel and Marc Demers and city administrator Scott Huizenga, are leaving for Saint Paul tomorrow. They plan to talk to lawmakers about cuts in aid, along with a couple other issues.

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