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State Budget Director Jim Schowalter was among Minnesota finance officials discussing the state's recession and $5.3 billion budget deficit earlier this month at the Capitol. Photo by Scott Wente, St. Paul Capitol Bureau.

'Biggest crisis' to affect local aid

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By Don Davis

St. Paul Capitol Bureau

ST. PAUL - Minnesota's local governments receive 30 percent of their revenue from the state, so when the state budget is sick, local governments sniffle.

Now, with a massive state budget deficit, the affliction is much worse than a cold. Many say legislators must resort to major surgery to reduce local government funding flowing from the state.

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