LGA freeze forces rural mayors to eye cuts, tax hikes, moonlighting in ZZ Top cover bands

With support from local newspaper editorials and local chambers of commerce, small town mayors fought to keep local government aid for cities of all sizes in the state's budget. The united efforts helped keep LGA alive.

And since the final deal freezes LGA at 2010 levels, local governments have to decide whether to cut services or raise revenue, or a combination of both.

In a short column in the Globe, Worthington Mayor Alan Oberloh writes:

Any high school class from Worthington, Willmar or Wadena would have produced a far better budget for Minnesota property taxpayers and their communities.

The governor and Legislature took a bad state budget situation and made it worse. Their decisions not only prolong the state budget challenges because of their borrowing; they also once again passed the buck down to local officials to make the hard decisions on spending cuts and tax increases.

This budget will result in Greater Minnesota families and businesses once again being hit with property tax increases and significant cuts to critical community services like police, fire, snowplowing and economic development.

Given Oberloh's truly admirable beard, perhaps moonlighting in a ZZ Top cover band for extra cash would be another option for raising revenue.

Across the state, on the northern edge of Drazistan, the Red Wing Republican Eagle reports in Local leaders have mixed feelings about state budget that mix ranges from dismay from local officials to severe pain in the part of Republican legislators who disclocated their shoulders while patting themselves on their backs in praise of the final deal.

The reality for the City of Red Wing? Tough choices:

In the days since the budget was approved, concerns have surfaced from those seeing cuts in state funding.

For example, the new budget allots $619,586 in Local Government Aid to Red Wing for 2011, the same amount it received in 2010. But the city was slated to get more than $1.7 million.

Red Wing city officials have said if LGA funding was low again this year, it could mean significant cuts to city services and could drive up local property taxes. That could be the case throughout the state, especially in rural areas.

And in Albert Lea, there's a similiar story in the Tribune, LGA freeze puts city on heels:

The state government may be up and running again, but now the city of Austin must cope with the Local Government Aid (LGA) freeze put in place when the shutdown ended.

When Minnesota legislators voted to end the 20-day shutdown, they also voted to freeze LGA at 2010 levels, meaning Austin will miss out on more than $687,000 of its certified LGA amount for 2011, according to city Finance Director Tom Dankert.

Half of the city’s $7.1 million LGA check is scheduled to be sent to the city by July 27; the other half of the funds will be sent in December. The 2012 LGA payment will also be the 2010 amount, which is $7.1 million.

The LGA freeze coupled with the elimination of market value credit will create a loss of more than $1.3 million for Austin over the next two years.

“1.3 million dollars — that won’t be easy for the city of Austin to deal with,” Dankert said. “We are in the realms where we’ve never been before.”

Mirroring the decision Minnesota legislators had to make to balance the state budget, Austin City Council members will have to decide whether to cut services or raise revenue, or a combination of both.

It will be interesting to watch how cities throughout the state deal with the choices facing them. I know that Hutchinson already made some tough calls even before this latest development.

Photo: Worthington Mayor Alan Oberloh, via the Globe.