Thursday, March 10, 2011

State Budget Impact on Monona

The city staff has been working diligently to estimate the impacts of the state budget on Monona city government. These impacts will not occur until the city's 2012 budget - except that the change in pension contributions will take place in 2011.

Here are some of the numbers from the city administrator's weekly memo:

2011/2012 Budget Impacts – As discussed at the Council meeting earlier this week, the Governor’s Budget Adjustment Bill and and the proposed biennial budget will impact the City and our staff significantly. Cuts in aid to recycling ($47,000) and shared revenue ($77,482). The amount of lost transportation aid is uncertain. A 10% reduction would be about $60,817. The total reduction from these three items is $185,299.

The city government will have an expenditure decrease of about $70,000 from the transfer of 5.8% pension contributions to the nonrepresented employees. The change in pension contributions will take place in 2011. The employees covered by existing collective bargaining agreements would not make these contributions until those agreements expire in 2013 and 2014. The city administrator's recommendation is to reimburse the employees for this expense until December 31, 2011 since that money is budgeted through 2011. 

Click for the city's 2011 executive budget  

A sizable unknown is the impact of the state budget on the library aid that we receive from the county, which runs about $230,000 in the ciy's 2011 budget.

From the LRB budget bill analysis:

Under current law, to participate in a public library system a municipal, county,

or joint public library (local library) or a county must meet a maintenance of effort

requirement, which relates to the amount of financial support provided to the local

library or by the county for library services over the previous three years. This bill

repeals these maintenance of effort requirements.

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