Cities and counties in southwestern Minnesota took a $900,000 hit in late December, when  state budget cuts reduced local government aid, the Marshall Independent reports.

Many of the governments already had spent the money, in anticipation of those promised state checks. Plus, further cuts are coming this year.

Some examples:

• The city of Marshall will use reserves to cover a loss of $278,000.

• Yellow Medicine County has lost $120,000 for 2008 because of unallotment, said County Administrator Ryan Krosch.

"We'll use reserves to cover that amount. This is money we already have budgeted to cover expenses," said Krosch. "If it's cut during the year, we are going to have to find a way to come up with that money, if it's going into reserves or cuts in spending this year and moving forward too."

• Canby City Administrator Diane Miller said her city lost $50,000 in 2008.

"Local government aid is 50 percent of my budget. We were at the Jan. 6, council meeting, and we sat down and we looked at where we have extra funds," she said.