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to Minnesota cities as the Governor proposes will help reduce that state government deficit by about 1 billion. The state government is still 'in a severe budget crisis; it probably can't afford to ,just restore state aid to all Minnesota cities except possibly to those cities with great needs, which from a statewide point --of -view does not include Roseville 7 , `Why can't we just wait and see what the state legislature finally does about the state budget before we cut the city "s budget? Maybe it won't be as bad as you think. " We could gait. But the Governor's proposal is to cut all of Ro seville's state aid the gear. We are already well into this year. And so far, there is no proposal that has been put for-ward in the state legislature to compete with the Governor's proposal. The longer we wait, potentially the more severe our cuts in Roseville would have to be because we would have less time to make up the loss in state funding this year. his you know, Minneapolis and St. Paul have already started making deep cuts in their budgets. I think we need to act. 8. 'Shouid I worry about being laid-off.? should f start looking or another job ? u I know the city Council will do everything it can to be fair to city employees while balancing the budget. As you see from my message, I am recommending some voluntary reduction programs first and foremost. If the Council approves those programs, we will see how manor employees voluntaffly take advantage of the incentive packages to retire or resign. We also need your input and community input about potential budget cuts before we do anything. Then we will be in a much better position to evaluate whether we have to lay -off employees. 9. `But wouldn't those early retirement or voluntary resignation incentive packages cost money... money you say we don't have ?" I any recommending using reserves, not operating dollars, to fund those incentive packages, 3