Audio Should city officials brace for federal and state budget cuts? (story audio) Photos R.T. Rybak Peter McLaughlin Tools E-mail this page Print this page Sponsor

Mayor R.T. Rybak says Minneapolis has swallowed $134 million in state and federal budget cuts over the past four years. (MPR Photo/Tom Scheck)

The mayoral candidates in both Minneapolis and St. Paul are making a lot of promises about creating new programs and hiring new city employees. But some argue they should be thinking about protecting the programs and employees already in place. They say both the federal and state governments are strapped for cash--and that means the Minnesota's two largest cities will likely have less money, not more, in their budgets over the next few years.

Minneapolis, Minn. — Minneapolis Mayor R.T. Rybak has a 10-year plan to end homelessness. His opponent, Hennepin County Commissioner Peter McLaughlin, wants to hire more police officers. St. Paul Mayor Randy Kelly is proposing a 3-percent property tax increase to hire more cops, while his opponent, Chris Coleman, wants to keep parks open longer and hire more firefighters and police officers. At least one observer says instead of proposing new programs, the candidates should be talking about ways to protect existing services from cuts.

"I'd say, 'get ready it's going to happen,'" said Curtis Johnson, chair of the CitiStates Group, which focuses on issues facing metropolitan regions across the country.

Johnson says President Bush, Congress and Gov. Pawlenty are all unwilling to raise taxes. He says financial pressures on the state and federal level could mean fewer dollars for cities. Cities rely on state and federal dollars to fund everything from public safety to housing to caring for the poor. Johnson says a relatively minor cut on the federal level could be catastrophic for a city.

"Everybody wakes up every morning knowing that we still have international terror," Johnson said. "We still have an unending number of natural disasters. At the federal level we have a perpetual forecast that we're going to hit some sort of fiscal Armageddon. It does not make an optimist about looking at federal money coming down to state and local levels anymore," he said.

The mayoral candidates in Minneapolis and St. Paul all say they'll speak out against any future budget cuts, but they have different ideas on managing their own budgets. St. Paul Mayor Randy Kelly says he's been the most effective in protecting the city from massive state and federal budget cuts. Kelly has been roundly criticized by fellow DFLers for endorsing President Bush in last year's election. He says though that his relationship with the president helped St. Paul avoid a cut in homeland security money . And he says his relationship with Republican Gov. Tim Pawlenty helped St. Paul get $7.5 million in state aid last year and more money for St. Paul schools.

"As a Democratic mayor in a Democratic city, look at the landscape in which you're working." Kelly said. "A Republican president, a Republican U.S. Senate, a Republican House, a Republican governor and a Republican statehouse. You need to work across party lines in order to get anything done on both the national and state level. I am very well positioned to be able to do that," Kelly said.

Kelly says he would consider cutting his own budget if the state and federal governments cut back. He says raising property taxes would be his last resort.

"A Republican president, a Republican U.S. Senate, a Republican House, a Republican governor and a Republican statehouse. You need to work across party lines in order to get anything done on both the national and state level. - Randy Kelly

Kelly's opponent, DFL-endorsed Chris Coleman, says he'd support a property tax increase if the money were directed to education or public safety. But he says a 10-percent increase in the city's property taxes would generate only $6 million. Coleman says St. Paul can't absorb any more rounds of state and federal budget cuts.

"We've gone for 12 years in the city of St. Paul dealing with cuts from the state and the feds without raising our property tax levy," Coleman said. "Any further cuts would dramtically reduce our ability to educate our kids and would dramatically reduce our ability to put public safety as a priority."

Across the river, Mayor Rybak says Minneapolis has swallowed $134 million in state and federal budget cuts over the past four years. Rybak used a mix of property tax increases and cuts to city programs to manage the city's finances. He says he'll use those options again if he has to. Rybak also says the state and federal government should be focused on core city needs.

"I -- and I think, many other people -- are really outraged by the ability of some politicians to use Katrina as an excuse to try to do the things they wanted to do all along," Rybak said. "To have government no longer play a role for those most in need."

Rybak's opponent, Peter McLaughlin, says the city needs to consider several options if budget cuts continue. He says those options include using technology to become more productive, combining agencies and possibly cutting some services. He says tax increases may also be necessary.

"You have to play the cards that your dealt as a local official," McLaughlin said. "At some point the cards get dealt to you and you have to play those cards and you can't just blame the president or Governor Pawlenty the way like Mayor Rybak does. You have to play the cards and make hard decisions and provide real leadership."

McLaughlin says the only way city officials can improve the hands they've been dealt is by changing the dealers. He says whoever is elected mayor of Minneapolis needs to work to elect state and federal politicians who are more sympathetic to city needs.