Gov. Tim Pawlenty’s proposal to make up a projected $1.2 billion state shortfall includes an $850,000 cut to local government aid in Albert Lea in 2010 on top of an already expected cut of about $780,000.

The cuts, part of a larger $250 million cut proposed for local governments, would come on the heels of other LGA cuts in 2008 and 2009, which have caused the city to reduce its budget already by more than $1 million.

Albert Lea Mayor Mike Murtaugh said he was surprised to hear the amount of the governor’s proposed aid cuts for the city — especially hearing that what he’s proposing would more than double the original 2010 cut.

“I think cities as a whole have responded and done more than their fair share to reduce the budget deficit,” Murtaugh said.

If the proposals come to fruition, that would mean that the city would get $3.87 million of its budget from LGA during 2010. That is down from almost $6.4 million in 2002 and about $5.36 million in 2004.

Murtaugh said the preparations city staff and the public made last year to reduce the budget — and in turn reduce the city’s dependency on LGA — give the city a little breathing room if more cuts are made.

But it wouldn’t prepare them for the entirety of the cuts.

Before the governor’s proposal, Albert Lea was set to receive about $4.7 million from LGA in 2010, but the city budget only includes about $4.4 million from that revenue source, said City Finance Director Rhonda Moen.

That means if an additional $300,000 LGA cut were to come, it would not affect the city. But if the governor’s full proposal comes to fruition, there would still be at least $500,000 to make up for somewhere else in the budget.

Moen said the city will continue with the spending reductions implemented last year, including the hiring stall and energy-saving efforts, among others.

“Right now this is a proposal,” Moen said. “We’ll be hopeful and work with our legislators on trying to get some of our LGA back.”

Murtaugh said the city will wait to see what comes of the 2010 legislative session and then decide how to proceed.

To face the cuts in 2009, the city formed a citizen budget task force to handle reductions, along with holding other public and staff meetings.

In the end, all city departments saw reductions.

Last week, Murtaugh and St. Paul Mayor Chris Coleman called for bipartisan support during a press conference at City Hall, urging state legislators to protect local government aid.

Minnesota’s local government aid to the city of Albert Lea:

2002: $6,397,290

2003: $5,657,814

2004: $5,360,574

2005: $5,343,836

2006: $5,625,749

2007: $5,620,736

2008: $4,931,527

2009: $5,095,041

2010: $4,724,618

Governor’s proposal:

2010: $3,870,963

— Information from City Finance Director Rhonda Moen

They gave examples how cities across the state have had to reduce their budgets, including reducing funds for street maintenance, reducing public safety personnel and in some cases increasing property taxes.

The following are the current and proposed additional LGA cuts for other area cities:

Alden

 Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $26,723

Austin

Current 2010 unallotment: $876,833

Additional proposed unallotment for 2010: $970,786

Clarks Grove

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $20,726

Conger

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $6,198

Ellendale

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $32,703

Emmons

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $18,173

Freeborn

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $11,736

Geneva

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $13,368

Glenville

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $27,706

Hartland

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $13,894

Hayward

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $13,700

Hollandale

Current 2010 unallotment : $0

Additional proposed unallotment for 2010: $12,107

Kiester

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $33,700

Manchester

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $2,023

Myrtle

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $1,704

New Richland

Current 2010 unallotment: $48,735

Additional proposed unallotment for 2010: $53,465

Twin Lakes

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $3,618

Walters

Current 2010 unallotment: $0

Additional proposed unallotment for 2010: $3,098

Wells

Current 2010 unallotment: $118,530

Additional proposed unallotment for 2010: $135,573