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Ambar Espinoza
St. Cloud, Minn.

St. Cloud braces for cut in state money

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Cities across Minnesota fear cuts in Local Government Aid are looming, as the state faces a projected $1.2 billion deficit.

The St. Cloud City Council will address the issue Monday at a public hearing on its 2010 budget.

St. Cloud Mayor Dave Kleis said the city is supposed to receive the remaining half of its LGA money, $5.5 million, this month, which is the last month of its fiscal year. He said the city lost $1.4 million in LGA last year.

"We are hoping we will not be unallotted anything in this budget, especially since there's only a few weeks left," he said. "It's difficult to make changes in a fiscal year that ends here in a few weeks, but if we are unallotted any dollar amount, we'll of course have to make adjustments to 2009 and 2010 because the commitments we have carry forward."

Kleis said the city does not have many options for cutting, because it already operates with a lean budget. The city has frozen hiring, salaries, and benefits, and it has put off capital projects.