DULUTH — Duluth Mayor Emily Larson is asking the City Council to rethink 2023 budget cuts it approved in December, in light of what she said is an improved outlook on an aid increase from the state.
In December, the council approved a budget that reduced a proposed 8.9% property tax levy hike by 1%. City administration presented the 8.9% increase in September, largely citing rising health care costs. The council, attempting to lessen the tax impact, asked city administration to trim another $383,000 equally across departments.
Last week, Larson wrote to councilors with a request to use remaining federal pandemic relief money in lieu of cuts to the city's budget, and at a Thursday meeting, the council learned the effects of those cuts if it stuck to its December decision.
City administration shared that the largest departments — police and fire — would absorb the biggest reductions. One vacant police officer position would remain unfilled and the Fire Department would lose a $72,000 overtime allocation. Both department chiefs said at the meeting they were already short-staffed.
Larson told councilors the city could receive a Local Government Aid increase of more than $5 million this year, to keep pace with inflation moving forward.
"This is information that was not available in December and is significant in impact," she said.
On Thursday, Councilor Roz Randorf said the use of pandemic relief money to offset budget cuts doesn't address future budget shortfalls. And the high cost of health care, she said, continues to put the city at risk.
"In 2023, health care costs increased 19.24%," Randorf said. "That's what we should be talking about and spending our energy on."
