State budget decisions could have big impacts on the Twin Cities, and both Lewiston and Auburn are meeting again this week to talk about potential changes.
“We need to see what adjustments we’d have to make to accommodate changes in the state budget, assuming that budget will ultimately be approved,” Lewiston City Administrator Ed Barrett said. “We’ve already adopted a budget, so what we’re talking about now is simply amending it.”
Auburn’s City Council is scheduled to meet at 5:30 p.m. Monday night to discuss and accept a spending plan for 2013-14.
“We know we’re not done, and we know that changes at the state level may be coming, ” Auburn City Manager Clinton Deschene said. “But at some point, we have to adopt a budget even if we’re not done, and then we have to come back and do it again.”
State legislators could decide this week on a proposed biennial spending plan that includes up to $125 million in cuts to revenue sharing through 2015.
Revenue sharing is state money earmarked for municipal services. In 2012-13, Auburn received about $2.6 million and Lewiston received $4.3 million in shared state revenue.
Current plans before legislators would reduce 2013-14 Auburn’s cut to $1.7 million and Lewiston’s to $2.8 million.
Lewiston’s councilors have already adopted a budget, but they’re scheduled to meet Thursday to discuss the state’s potential changes.
“We’re putting together a whole list of changes to discuss,” Barrett said.
Lewiston councilors voted unanimously in May to approve a $43 million spending plan for city operations and a $54.5 million school spending plan. The overall budget would set the tax rate at about $26.05 per $1,000 of property value — a $39 increase on the tax bill for a $150,000 home.
It’s all back on the table now, Barrett said. Councilors could decide to cut services deeper or raise taxes to make up the lost state revenue.
“One of the options on the table is some combination of tax increase combined with spending reductions,” Barrett said. “There will be a whole series of options laid out for the council. One starting point is just increasing taxes, which would be a 61 cent increase (in the property tax rate). And then the discussion that follows is how do we reduce that.”
Lewiston’s meeting is scheduled for 6:30 p.m. Thursday, June 27, in the Lewiston City Council chambers.
Auburn’s council will get the topic at 5:30 p.m. Monday at a specially scheduled City Council workshop and public hearing.
It’s almost the last chance for Auburn City Councilors to settle the budget before the month ends and rules in the city charter impose a tax increase.
According to Auburn’s charter, councilors must adopt a new budget before the end of June. If they can’t, the budget first proposed by the city manager goes into effect. That budget, released in April, called for a $930,000 spending increase that would increase property taxes by $1.22 per $1,000 of value, or $183 for a $150,000 home.
Councilors last week agreed they could live with a budget that’s $2.3 million lower than that.
Deschene said he and staff have been working to find out what those cuts could mean.
“We have a balance, but I don’t know yet where all the cuts are coming from,” Deschene said Friday. “We have some other ideas that we’ve floated, and we’ll be able to see Monday night what works and what we can do.”
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