Ongoing state cuts to local government aid are hurting the quality of life in rural state communities, according to a report by Minnesota 2020.

This organization based in St. Paul is a nonpartisan think tank that focuses on matters like education, health care, transportation and economic development.

Two members of this organization, board chairman Matt Entenza and report author Jeff Van Wychen, both of St. Paul, were at the Albert Lea City Hall Wednesday afternoon for a news conference.

Also participating in this news conference were Albert Lea Mayor Mike Murtaugh and Dan Dorman, executive director of the Albert Lea Economic Development Agency.

Entenza is originally from Worthington and served as a representative in the state legislature from 1995 to 2007. During a portion of this time he served with Dorman who represented this area.

The report released by Minnesota 2020 said state aid to cities has declined 47 percent between 2002 and 2008. Because of lower tax bases, smaller cities are more dependent on state aid. As a result, property taxes have to be raised to cover this funding shortage, both Dorman and Murtaugh said.

“We cannot balance the budget on the backs of Minnesota cities,” Entenza said. “Cities have been crippled by past LGA cuts. Enough is enough. We must maintain current levels of LGA funding to keep police officers on the street, libraries open and ambulances running.”

Dorman added that fire protection is also an important core service. And he firmly based this on the fire that caused extensive damages to the family business — Hanson Tire Service — on Tuesday afternoon.

Van Wychen commented, “We understand that the state is facing a big budget deficit, but we don’t think it should be resolved at the expense of basic community services.”

Murtaugh said 36 percent of the city’s budget presently comes from LGA funds. The reductions past, present and anticipated in the future will result in property tax increases and likely public service cuts to cope with the LGA cuts from the state.

Albert Lea faces an expected cut of about $500,000 in local government aid in 2009 and more than $1 million in 2010. Those cuts come on the heels of a $400,000 LGA unallotment in December.