Mayor R.T. Rybak prepares Minneapolis for state aid cuts

by Raghav Mehta

On Thursday afternoon, Mayor R.T. Rybak detailed his plan to prepare for an additional $9.2 million in state aid cuts. Rybak stressed that certain pre-emptive financial decisions made by the city mitigated the severe impact the cuts had on the city.

According to the Star Tribune, Rybak defended Minneapolis for practicing fiscal austerity the city has maintained in the face of repeated state cuts and noted that state spending “had risen eight times faster than city spending since 2001.”

“The city is in good financial shape because we did long-term planning,” he said.

Rybak also said his budget-balancing proposal will require no layoffs.

 Through one-time income and a “small amount of additional trimming” will help the city rebalance the budget.

With 9.5 million in one-time revenue coming in from cutting last year’s budget and a lapsed tax-increment financing districts. Rybak said $3 million of that could be used to offset state aid cut, 2.8 million to prevent borrowing for pension costs and $3.7 million in investments for projects that would lower future costs over time.

More details of the proposal will be revealed on Monday in the City Council’s budget committee.