St. Paul City Council members spent about an hour Wednesday talking about what they don't know.
Specifically, about what kinds of budget holes they'll need to fill this year and in 2010, once Gov. Tim Pawlenty uses his power of unallotment, an authority to cut money already appropriated for local governments, to balance the state's budget. He hasn't said exactly when he'll do it, though.
"There remains a lot of uncertainty," said Deputy Mayor Ann Mulholland, who briefed the council members on the progress of the 2010 budget process.
Mayor Chris Coleman is trying to coordinate a 2009 budget amendment with the 2010 spending plan.
The city is expecting local government aid, or LGA, payments in the amount of $62.6 million this year and $64.1 million next year. Payments come in July and December and are applied to the city's general fund, which pays for services such as police, libraries and parks.
City officials predict unallotment cuts of $7.7 million this year and $16 million in 2010. A gap of $10.2 million is already planned for 2010 because of inflation.
To deal with that, department directors are preparing 2010 budget scenarios with options for 5 and 14 percent reductions.
Mulholland said that one positive development from the legislative session was that the city will be allowed to use a portion of its special sales tax revenues, $3.5 million, to pay down debt. Officials had prepared for that amount to be added to the 2010 deficit.
