City officials are sharpening their budget cutting axe in response of the governor’s recent budget proposal.

Though the governor’s proposed 22 percent reduction in local government aid (LGA) is nowhere near finalized, it’s clear that there will be cuts to some degree and those cuts will hit home for many Albert Lea residents.

This summer, parks may be without staffing for supervision, there may be cutbacks in recreational programs, fees will likely raised for the hockey arena and the swimming pool, and people using the senior citizen’s center or the theater might have to pay higher prices.

“We hate to see those things,&uot; Councilor George Marin said. &uot;Those are important programs to the families of our community but it appears that some of those things are going to be affected. But in tough budget times we have to prioritize.&uot;

City officials are recognizing they will likely to have to cut programs and positions, no matter whose proposal is passed. It’s also clear that they need to come up with a plan so they can go into action without any surprises when a state budget is finally passed in May.

The proposal released by Gov. Tim Pawlenty on Tuesday would cut nearly $750,000 in LGA for the 2003 budget, and nearly $2.5 million for 2004.

The main concern for Albert Lea is that the numbers from the state auditor’s office, on which the cuts for each city are based, are misleading because they are from a year when the city gained a large amount of revenue.

The governor’s LGA formula is based on revenue from 2000. For Albert Lea, that was the year the state gave the city $10 million in overpaid police and fire pension funds, which can only be spent on public safety. City Manager Paul Sparks said because of this, the numbers for 2000 were inflated in comparison to average years.

While the city, as well as local legislators, lobby the state to change those figures, Sparks and city councilors feel the city should plan for a worst-case scenario.

What has been laid on the chopping block are the city’s “non-essential” items. Topping the list, and just about completing it, is the Parks and Recreation Department.

Parks and recreation makes up the majority of the larger budget grouping of culture and recreation, which makes up almost 24 percent, or $2,968,085, of the city’s $12,571,322 total budget.

There are parts of this grouping that can’t be cut, according to Sparks.

One of those is the library. Sparks said state law mandates that a city’s library budget must stay at least at the same level as the previous year. For 2003, $789,110 is budgeted. That means only $2,178,975 in culture and recreation grouping is left to cut.

The issue is, according to Sparks, that if Pawlenty’s total $2.5 million cut for Albert Lea were to be passed, it means more than $300,000 would left to cut even if parks and recreation were cut altogether. What is left from there is principally essential services, administrative positions and money set aside for.

If that extreme a cut were to take place, the city government would likely be looking into the police or fire departments for financial room. If that sort of cut lasted a short while, it could be covered by dipping into the police and fire pension funds, according to Sparks. If not, there would have to be changes made in public safety.

Recently the governor criticized city governments who couldn’t deal with LGA cuts, saying if cities had to cut into essential items, they should get new leaders.

Sparks said that rhetoric isn’t understanding of how Albert Lea might be affected.

If the $2.5 million cut were to go through, it would take out 20 percent of the city’s budget, and, according to city manager Paul Sparks, those cuts would meander into essentials.

The city may have to increase its revenue raising fees for some of its services.

The cost of renting ice at the city arena, which has recently been raised, will likely be raised again. The city pool will also up their rates.

The Civic Theatre and the Senior Citizens Center both may get cuts.

“We might ask the users (of both) to pick up greater share of the cost of the operations or we might have to change the management’s share,” Sparks said.

City councilors will come up with a plan for cuts over the next month. Through the spring, summer programs get planned and send out information. If those programs are cut, the departments as well as residents will need to know soon. Councilors concede that a plan is needed.

&uot;I’m going to want to look at every potion possibe that we can,&uot; Marin said. &uot;It’s a tough situation that we are facing with the state budget crisis. I’m not going to be one to sit back and say cut all the park and recreation budget. There is always room where the belt can be tightened.&uot;