Mayor Bonnie Rietz, City Administrator Patrick McGarvey and city council members met Saturday morning with State Rep. Jeff Anderson and State Sen. Dan Sparks to discuss the effects the governor's proposed cuts to state funds would have on Austin's budget.

Gov. Tim Pawlenty's proposed budget would provide $933,000 less this year for Austin than in previous years and $1.8 million less in 2004.

That, along with tax levy limits set by the governor, which cut $77,000 in city taxes this year, means Austin may have to make some personnel cuts, McGarvey said.

He asked Anderson and Sparks to work toward eliminating tax levy limits or at least raising the limits to a more reasonable level.

"Let these folks (city council members) make that choice. If they don't like that choice, election time comes every four years," he said.

Anderson said the governor wants to have tax levy limits.

"Some cities would not cut anything and raise taxes," Anderson said. "When the people point their fingers at the city, they would point their finger at the governor."

Rietz said Austin has managed its money well and hoped that would have some impact on legislators' decisions on distribution of state funds.

"At a certain level, I understand that if you give them more money, some cities spend it and aren't prudent," Rietz said. "We have been very prudent and careful with our funds. I'd appreciate you pointing out that we've been careful."

The mayor and council members asked Anderson and Sparks to work with the governor to find other sources of income for the state. They said the deficit burden hit out-state areas such as Austin more heavily and than suburbs and said the metro area should provide a larger share.

"You could say, 'Sorry, but the Twin Cities could afford to pay a $100 million tax levy,'" McGarvey said. "This is a fairness issue and somehow we've got to rearrange (the burden)."

Anderson and Sparks both said that they would work to let the out-state town and rural perspective be known. They said the governor was still looking at many options.

"I understand that you have to sit here and try to formulate your budget, and you don't know what's going to happen," Sparks said. "We want to be careful not to shift the whole burden back onto you guys."

Matt Merritt can be reached at 434-2214 or by e-mail at :mailto:newsroom@austindailyherald.com