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Protecting city funds

ROCHESTER, MN (KTTC DT) -- The budget cuts don't stop there. With critical funding for public safety, libraries, and parks on the line, southeastern Minnesota mayors gathered Thursday to protect what money is still available.

Minnesota Governor Tim Pawlenty has proposed cutting almost $300-million over the next two years through a process called unallotment.

We'll explain how that works and why your property taxes could rise and take some police officers off the streets.

St. Charles Mayor Bill Spitzer says, "Those LGA cuts could impact the major employer in the city of St. Charles."

Northstar Foods was completely destroyed by an April Fire.

The St. Charles processing plant employed 250 people, brought in more than a million dollars in sales, and Mayor Bill Spizter says, its future is threatened.

The small city could lose about $163,000, according to Minnesota Governor Tim Pawlenty's budget balancing act.

Spizter says, "It's going to cost that in land just just to purchase the land for a new Northstar Foods, in excess of $200,000."

St. Charles wouldn't be the only city to lose out on local government aid.

Mayors from southeast Minnesota gathered at Rochester's City Hall to call on the governor to minimize cuts to LGA.

Since he never reached a final deal with the legislature, the governor has promised to balance the state's budget on his own through a process called unallotment.

That means, he can reduce funding for any state program by whatever amount he deems appropriate starting July first.

Pawlenty has proposed cutting $246-million over the next two years.

Dan Dorman, former lawmaker, (R) Albert Lea says, "If we can get enough people to put pressure on now we may be able to do something different beforehand to avoid really bad outcomes."

Dorman says, small cities could go bankrupt, lose police officers, park and rec programs, and see a rise in property taxes.

According to Minnesota's Department of Revenue data, since 2002, the cost of property taxes is rising as LGA falls.

Dorman says, "Doesn't really mean that much to you until the cut comes, then it's too late."

Northstar Foods can't afford to take that chance.

Mayor Spitzer he wants to rebuild in St. Charles - but at what cost?

Under the proposed LGA cuts, Rochester could lose more than $5 million, Dodge Center just more than $200,000 and Rushford, still trying to rebuild from the 2007 flood, could lose $135,000 dollars.

City leaders are urging people to call Governor Pawlenty and propose their own budget ideas.

That contact information is budgetidea@state.mn.us or you can call 800-657-3717.