[Winona Online Democracy]

Hello Winona Online Democracy,

Two weeks ago, Steve Kranz passed along a report and summary about how the
Governor's proposed cuts would impact the School District.  Taking his
lead, I asked the County staff for the same kinds of rough numbers.

It will be interesting when we add up all the ways the Govenor's budget is
going to impact little ol' Winona.

Dwayne Voegeli

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Summary of Gov. Pawlenty's Proposed Budget Cuts on Winona Cut

March 4, 2003

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Governor Pawlenty's proposed 2004-2005 biennial budget may well affect the
services that Winona County performs if passed in its present form.

The obvious impact is to reduce state aid sent to the County in the form of
Homestead and Agricultural Credit Aid (HACA).  The Governor proposes to
reduce HACA to Winona County by $478,698 in year 2003 and $873,554 in year
2004.  Since our total general aid from the State is $2,257,747 per year
and we will lose $649,155 in HACA when the State takes over Court
Administration, the proposed additional biennial loss of $1,352,252
represents a 30% cut in 2003 and a 54% cut in 2004 for aid designed to
offset local property taxes.

These numbers will be in constant flux until the State Legislature and
Governor arrive at their final agreements.  Please view these numbers as
the best estimates that are possible at this time.  This is an attempt to
better inform the public of what is happening at the local County level but
please be patient as these numbers change over time.

Obviously, the County Board and staff will continue to evaluate proposed
cuts as  well as methods of mitigating the loss of State aid.

The less obvious impact of the Governor's proposed budget is the potential
reductions in County funding that will occur as a result of the decreased
funding to state agencies.  The County will feel the impact of these
potential cuts in the categorical aid or grant funding it receives.  There
are no current estimates on actual dollar amounts for categorical aid
reduction.  However, the cuts will most likely be as much or greater than
the reductions to HACA, but will affect specific programs.

In addition, the Governor's proposed budget assumes that the levy limits
currently in place will continue to be in effect.  It is difficult for the
county to experience state cuts of this magnitude and not have the ability
to make up for some of the difference by increasing the local levy based on
how the County collects its revenue.  Of the total revenue the county
collects, approximately 35% comes from the levy on our taxpayers.  The
county uses the 35% it receives from the taxpayers to leverage the other
65% of revenue.  That makes Winona County Government a good value for
county taxpayers.

In addition to being a good value, the County is a safety net for residents
that cannot help themselves because they are very poor or have some form of
mental or physical challenge.  The County believes that it has a morale
obligation to provide this safety net and it takes resources to fulfill our
obligation.  This obligation does not disappear when State funding
evaporates.

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Dwayne Voegeli

Winona County Commissioner, District #2

(507) 453-9012

[EMAIL PROTECTED]

870 44th Ave.
Winona, MN  55987

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