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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 gust 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. T., '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 wait. But the Governor's proposal is to cut all of Roseville's state aid this year. We are already well into this year. And so far, there is no proposal that has been put forward 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. As you know, Minneapolis and St. Paul have already started making deep cuts in their budgets think we need to act. 8. "Should I worry about being Laid -of, f? Should I start looking for another jab ?" I know the City Council Will do everything it can to be fair to city employees while balancing the budget. As you see from m message, I am recommending some voluntary reduction programs first and foremost. If the Council approves those programs, we will see how rna.ny employees voluntarily tale 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 mcentive packages cost money... money you say we don't have ?" i am recommending using reserves, not operating dollars, to fund those incentive packages. 3