Duluth's Budget Woes Worse Than Expected

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Duluth's Budget Woes Worse Than Expected

By KBJR News 1

Story Published: Oct 3, 2008 at 12:18 PM CST

Story Updated: Oct 3, 2008 at 12:19 PM CST

Duluth's budget woes are worse than originally projected, according to Mayor Don Ness.

Today the mayor revealed that money the city had expected to get from the State of Minnesota for 2008 is $1.342 million for Amortization Aid – $2.4 million short of the state's commitment.

With a similar shortfall next year, the total impact on the city would be $6.8 million.

The payment from the State was actually $13,000 less than the administrations projected worst–case scenario.

Meantime, Mainsail, an asset–based commerical paper that the city of Duluth had invested in recently liquidated its assets, resulting in a near $2.5 million loss for the city – more than a quarter million dollars more than the projected loss at the beginning of the year.

Strategies to improve to city's budget woes include a reduction in Police and Fire Insurance Aid.

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