The state budget deal means Duluth officials will have to cut another $1.2 million from its city budget this year, after already making $3.5 million in cuts and savings.
But it could have been worse; the original Republican plan would have eventually eliminated Local Government Aid, which Duluth officials say would have been devastating.
As it is, the budget agreed to by Gov. Mark Dayton and Republican legislators cuts 12 percent from cities, said the Duluth News Tribune.
The paper said the city will end up losing a total of $4.7 million between LGA and market value homestead credits.
The next round of cuts will be tough, said Mayor Don Ness:
“We’re having discussions right now with staff to say, are there any other areas we can do, and unfortunately, especially when you’re in the middle of the fiscal year it’s often putting off capital projects or putting off equipment replacement that really needs to happen.”