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2003_0728_packet
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2003_0728_packet
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. "Could use all just agree to reduce our wages a little bit to cover our <br />deficit?v <br />We- could. We estimate that if every city employee reduced their <br />wages and salary by 10% that would cover our projected deficit. If <br />this were a short -term problem, 1 would recommend considering <br />that. However, I don't think this is a short - -term situation. And <br />unless every employer did the same thing in reducing their <br />employees' wages 10% - which is not happening - then some, <br />perhaps many, of our employees will go elsewhere where they can <br />earn a market pay rate. If we are looking at a long-term situation, <br />as I believe we are, I suggest it is best to pay the right number of <br />people fairly, rather than pay everyone a reduced amount. <br />6. "Why don "t you think this isJust a short -term situation? Won't the <br />state a ve r p ro vide state aid to Roseville again P <br />1 don't know RR at this point no one knows for certain but it sure <br />doesn't look like it. Let me explain. <br />I expect the state legislature will let Minneapolis and St. Paul keep <br />some of their state aid. This is because they are large cities that <br />have statewide significance and because the state legislature has <br />given there many tens of millions of dollars ire state aid for many <br />gears. (Minneapolis and St. Paul receive much more state aid per <br />resident than Roseville does.) Minneapolis and St. Paul have <br />come to rely upon state aid for a large part of their operating <br />budget. I think Minneapolis and St. Paul will lose lots of state aid <br />but not all of it. <br />I also expect the state legislature will authorize some state aid to <br />hundreds of rural communities in Minnesota. This is because, <br />being small towns in rural areas, they may lack a solid ta. x base of <br />their own and consequently they, too, have become very dependent <br />on large amounts of state aid over the years. For those reasons <br />rural cities may continue to receive some reduced amount of state <br />aid to provide essential city services. <br />Roseville and a few other suburbs, on the other hand, have solid <br />tax bases and have not historically received huge amounts of state <br />aid from the state legislature. There is talk in the legislature about } <br />changing the formula by which state aid is provided to cities. But I. <br />seriously doubt Roseville will see this kind of general purpose state <br />aid again under any needs -based funding ormula. Remember: the <br />g P <br />State has a 4 billion deficit it needs to address. Reducing state 2id <br />2 <br />
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