Cass commissioners talk about state budget deficit's possible effects on county

WALKER -- Patricia Coldwell of the Association of Minnesota Counties Tuesday told the Cass County Board the county currently receives $3,002,198 in state funds.

With state budget deficits projected to range between $4 billion and $6 billion, she said counties should expect cuts in the state's funding to local governments.

If the entire package were cut, Cass would have to increase property taxes 23.57 percent to maintain the same level of services, Coldwell said.

In reality, the county likely will not lose some special funding, such as payments in lieu of taxes, health or social services funding or funds specially collected for and allocated to recycling.

Cass commissioners believe there is a strong likelihood the county could lose all or part of the state's homestead and agricultural credit, which would mean losing $1,349,201 annually. This could mean close to a 10 percent property tax increase or significant cuts in county services.

The board has budgeted as if all state aids will be received this year. If not received, board members have indicated they will face tough choices this year.

Employees already were laid off Jan. 1 to balance a budget that included state aids the county might not receive.