HomeMy WebLinkAbout1980 08-27 Aid important to 'fiscal health' THE REVIEW Aid important to 'fiscal health'
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By FORREST PETERSON be trimmed by$124.9 million,and state Exceptfor meetings of school officials, help,they don't mean financial di ster,
departments could lose $49.4 million, nothing has been received in writing thus either.
State Auditor Arne Carlson couldn't according to Quie's announcement, far from the state regarding the proposed Dan Faust, finance office for
have picked a better time to launch his The North St.Paul-Maplewood-Oakdale cuts,Engen said."We're operating off of Maplewood, says that city ori lly
campaign for "fiscal health" among School District 622 receives about $17 sketchy information." expected$1,138,260 from the sta this
municipalities and counties in the state. million in state aid,most of which goes Whatever happens,he said, "They're year. But if Gov. Quie's budgetcut
Carlson has been visiting area into the$20 million general fund. not going to let the schools go down the becomes a reality, Maplewood's khare
newspapers in an effort to drum up According to Dist.622 business director tubes." will be trimmed by $114,470 to+total
publicity for the program, and is Owen Engen,the district is looking at an
$1,043,790 from the state. n
traveling to 26 Minnesota communities to estimated$1 million reduction in aid if the A LOCAL GOVERNMENT with shaky Lake Elmo,which expects to re eive
explain it to local legislators and mayors. proposed state budget cut occurs. finances would find itself in serious $118,216 from the state this year,probably
Basically, the plan, called the Min- Because most school expenditures for trouble if drastic cuts in aid occurred. will dip into its contingency fund ip the
nesota Financial Health Program, will the coining year already are contracted According to Carlson, the Financial case of a budget cut,according t0 city
provide information that can point out for,there is little room to trim that much Health Program would help local officials administrator Larry Whittaker.
major financial problems in local money,Engen said. figure out beforehand how to prevent The city won't be seriously hurt
government,and also determine trends. Immediate steps being taken or disaster should outside aid be reduced or financially, Whittaker said, but most
The unveiling of the plan preceded by proposed include: all hiring must be stopped. likely would have to increase its tax rate
one week the announcement by Gov.Al approved by Supt. William Woodworth, Cities, counties, and school districts slightly next year to make up the dif •
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Quie that the state could face a $195 tightening up on purchase orders, and receive a substantial portion of their ference. ".
million revenue shortfall. cutting travel expenses. revenue through the state and federal "I think most of the communities out
Transfer funds from the state and "It's safe to say there is just no way we governments. here are pretty healthy,"Whittaker said.
federal governments are a major source can reduce for'80281 a million dollars and The budget cuts announced by Gov. Carlson agreed that most suburban
of revenue for local governments.Quie still operate,"Engen said. Quie would average about an 8.3 percent communities were in pretty good
said that state aid to counties and cities Already the district has projected that a reduction in state aid to local govern- financial shape.
could be cut by as much as$20.8 million budget cut of$1 million will be necessary ments. .
this biennium. in 1981-82 in order to avoid red ink in the Finance officers for municipalities in IN 1978 THE STATE required local
EDUCATION EXPENDITURES could budget,he said. the Review area say while the cuts won't Continued on page 2
Page 2A `Wed.,Aug.27,1980 THE REVIEW
Fiscal health annually.In a prepared statement he Said aid:"That may well become a caused
"protecting this type of taxpayers'in- stress due to the possibility of the federal
Continued from page I vestment has to be one of the state's government cutting back on those aids,"
highest priorities." he said in the prepared statement."This
governments to begin accounting their could place that municipality in serious
finances on a modified version of the THE FINANCIAL HEALTH Program financial straits."
accrual basis. will provide"an early financial warning
Some local governments around the plan designed toavert problems that have FIVE GENERAL categories of in-
stale have been slow to change over to the plagued many communities in the formation included in the Financial
new system,which records income and country,"according to Carlson. Health Program are:status of the local
expenditures when obligations are in- "The program is really not as com- economy, financial independence and
carted,rather than when the money is plicated as it sounds,"he said."It is flexibility, municipal productivity,
actually taken in or spent. comparable to a thorough physical current costs being deferred to the future,
Under the modified accrual system that examination except that we will be and financial management practices.
is used,some items still are done on a examining economic data that will Carlson said increasing energy cost isa
cash iasis, however, explains Rick determine a community's financial major factor in the gloomy financial
Hangsleben,finance officer for Oakdale. health." outlook for states such as Minnesota that
That city's general operating fund The state auditor's office expects to do not have their own energy resources.
amounts 10 about St million annually, have the fest part of the program In terms of energy,"we would he a'have
Hangslehen said.Overall Oakdale is in operating by April 1981 and the rest not'state,"Carlson said.
"pretty good financial shape,"he said. during the following 12 months. In meetings last week with local
In comparison,Lake Elmo's general "H we succeed in this mission,the government and education leaders to
fund is in the neighborhood of$400,009, savings will be considerable,'Carlson explain the state budget situation,Gov.
Maplewood's is about 94.8 million for 1981, said. Quie said,"I've decided to act now rather
and North St.Paul's about Sly million. The program looks at30 different items than next winter or next spring because
About 30 percent of their general fund over a five year period.The information it's far easier for all units of government
revenue is received from stale aid. is analyzed to determine trends. to make reductions in their spending
According to Carlson deal govern- Carlson noted the example of a plans if they have nearly a year in which
ments in Minnesota spend about If billion municipality that relies heavily on federal to implement them rather than only a few
months or weeks."