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NY Mills out nearly $29,000 in state aid

State aid payments to Minnesota cities came up short this week after Gov. Tim Pawlenty announced a $110 million cut to Local Government Aid.

Perham will lose $64,287.

New York Mills will lose $28,803 in LGA from this year's second half payment, which the city will receive by the end of the month. NY Mills was scheduled to receive $187,246 for its December payment, but after the cut in LGA will receive just over $158,443. The city's full year LGA for 2008 was scheduled to be $374,492. The cut reduces the full year amount to $345,689.

To balance the state's budget, Minnesota Gov. Tim Pawlenty on Friday drained the state's budget reserve and chopped away at state payments to local governments, colleges, human services providers and state agencies. The average Minnesotan should notice little change, the Republican said.

Major cuts included $110 million from payments due to cities and counties, $73 million from human services programs, $40 million from colleges and $40 million from various state agencies.

"Families and businesses across the country are tightening their belts, and government needs to do the same thing," Pawlenty said.

City officials were unhappy with losing $66 million of an expected $280 million payment on Dec. 26.

Pawlenty's cuts - officially known as "unallotment" - mean cities will receive less money than they expected this month.

According to figures released by Darla Berry, NY Mills City Clerk, New York Mills sees a 7.7 percent reduction in LGA for the year. The state shows it as a reduction of 4.08 percent, basing its reduction on the city's total state aid (LGA of $374,492) combined with the city's 2007 levy (taxes collected in 2008) of $331,468, or a total of $705,960. The $28,803 cut to NY Mills represents 4.08 percent of $705,960.

Aid to cities with 1,000 or fewer residents, exempting 505 of the state's 854 cities, was not cut. Counties smaller than 5,000 also did not see a cut in LGA.

Pawlenty cut $271 million from the budget after using the state's $155 million budget reserve. Pawlenty, who under the constitution was required to make cuts, balanced the state budget without affecting military, veterans, public safety and K-12 education programs.

The Legislature and Pawlenty will need to balance the next two-year budget once lawmakers return to St. Paul on Jan. 6. It is expected to be about $32 billion.

(Forum Communications capitol reporter Don Davis contributed to this story.)


Losing state aid

A look at some area cities and counties and the amount of state aid, in dollars, each will lose under Minnesota Gov. Tim Pawlenty's budget released Friday:


Detroit Lakes/$142,581

Fergus Falls/$320,315

New York Mills/$28,803

Pelican Rapids/$57,259






Otter Tail/$476,349