Because of Minnesota Gov. Tim Pawlenty's solution for the state budget shortfall in 2008-2009, Jordan needed to make an emergency cutback of $118,000 to its budget.

The city council held a special meeting Dec. 29 to decide on how to make up for money that 10 days earlier Pawlenty decided not to give to cities. With a 5-0 vote, the council transferred $110,000 from its general projects fund -- money leftover from previous city projects -- to the general fund, which city officials expected might be bolstered with money from state coffers. The other $8,000 will be taken from money previously cut from the budget, City Administrator Ed Shukle said.

Councilmembers David Hanson and Jeremy Goebel were absent from the five-minute meeting, and Mayor Ron Jabs and Councilmember Barry Ullmann were called back to city hall after they thought they'd served at their last council meeting during the previous week.

The state promised about $390,000 to Jordan in 2008, but city officials also knew that as of recent years, the governor and the legislature has been targeting the local government aid and market value homestead credit programs for cutbacks.

Faced with the state's projected short-term budget deficit of $426 million, Pawlenty made a $66 million unallotment of funds meant for cities part of his solution. Jordan received a payment from the state this summer but also lost out on $118,000 of the remaining $144,580.

"We got a check for $26,000-something last week," Shukle said. It was for $26,580, to be exact.

Pawlenty also unallotted several other planned expenses, including $44 million of funds meant for counties. Scott County lost out on $945,602 of its scheduled December payment of more than $2.4 million from the state.

The state, which set levy limits last legislative session, originally instituted the payments to cities and counties as one way to pay down local property taxes. 

When the Minnesota Legislature convenes tomorrow, many discussions will surround the solution for a $4.8 billion projected deficit for the 2010-2011 state budget, and city officials fear that LGA and MVHC will again be targeted.

"We could lose all of it," Shukle said.

Jordan is scheduled to receive about $340,000 of state aid money in 2009.

Although the legislature won't give cities a conclusive answer until at least March or April, Shukle said the city council will soon begin preparing for cuts. Because the city already chopped back its 2009 budget by $340,366 to lower a proposed tax levy increase from 22 percent to 9 percent, Shukle expects the next state budget reductions might affect city services.

"We have nowhere else to cut," he said.