State budget 'body slammed' by the economy

When the state economist calls the long term outlook ugly when it comes to Minnesota's budget it's time to pay attention.

"This is the worst its been since the 80's and possible the worst since pre World War II  times," former commissioner of finance Jay Kiedrowski said Thursday.

Kiedrowski served as commissioner of finance under Governor Rudy Perpich. He made tough budget decisions then and has an idea about what needs to happen now.

"We had to look everywhere for everything.  Look at fees, tax increases all expenses."

In short he says every state expenditure is on the block.

The salaries and hiring police and fire-fighters, public schools, libraries, license plate tab fees, health care, everything.

Fifty percent of the budget spending goes to K-12 education.  Kiedrowski is hard pressed to see how that budget doesn't get cut.

"You could see greater class sizes for elementary and secondary schools, I think a community college closing, any number of things out there."

Public libraries may have to reduce hours, reduce staff.

License plate tab fees may increase.

There could be a surcharge on income tax, Kiedrowski says.

And the old tried and true tax free clothing and services may have to end.

"These are awfully difficult times and we will not get by with easy or simple decisions."

He also points to higher education, public universities getting hit hard.

"You could see tuition going up, less aide available for students."

What happens at the city-wide level will depend on the local government aide coming their ways.
But cites may have to make tough decisions too.

"Do you cut fire, street sweeping, plowing?" Kiedrowski asked hypothetically.

It may be all or none of the above.
The meetings begin tomorrow with lawmakers and Governor Pawlenty.

By Jana Shortal, KARE 11 News Read Jana's Blog

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