Budget reductions yet AGAIN, thanks MN legislature…

I am currently riding in the MS TRAM, but had a chance to post an update or two.  Once again the Minnesota Legislature has failed to live up to their obligations.  Here is a note from City Administrator Stevan Kvenvold on our latest round of budget cuts:

Mayor/Council: Due to the recent action taken by the Governor and Legislature during the recent special session, the City loses $3,557,584 in 2011 certified LGA and $1,954,893 in market value credit payments. During the preparation of the 2011 budget, we anticipated and planned for the loss of the $3,557,584 in LGA but did not anticipate or plan for the loss of the market value credit aid.  Therefore, we must now reduce programmed 2011 operating budget or CIP budget appropriations by the $1,954,893 market value credit aid.

I will be meeting with the department heads to put together recommended reductions for your consideration. I currently anticipate meeting with the Mayor and City Council members in the latter part of August to discuss possible reduction recommendations.

I do not plan on recommending any layoffs for 2011.  Layoffs are not very productive from a budget savings viewpoint since money is spent on unemployment and there is a loss of productivity.  The organization has been operating with vacancies for a number of years and many functions have been understaffed for some time. Approximately ½ of the organization’s employee costs are in public safety and I do not anticipate any Mayor/Council support for any layoffs in those functions.

When the recommendations are ready for your consideration, I do plan on having small group or individual meetings to discuss the recommendations prior to any public review and/or discussions.

Stevan

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