State Democrats are coming to Austin to hear opinions from citizens on problems and possible solutions for the state budget crisis.

Reps. John Dorn of Mankato and Gene Pelowski of Winona will lead a town hall forum at 6:30 p.m. Tuesday in the council chambers at city hall.

"The problem is so large," Pelowski said. "We're still trying to get a handle on how the budget impacts all avenues of life in Minnesota."

There will be a short presentation about Gov. Tim Pawlenty's budget proposal and the impacts that it would have on Austin. After the presentation, the representatives will be listening to citizens' take on the situation.

"We are particularly interested in the question, 'Do you agree with Gov. Pawlenty that the only way to manage the situation is through cuts?'" Pelowski said. "If the answer is just cuts, then people need to listen very carefully to what is said at that meeting, because those things will come to be in May."

Pawlenty's proposal call for cuts in Local Government Aid (LGA) that amount to $933,000 this year and $1.8 million in 2004 for Austin. In preparation for this, the city has prepared a budget proposal that includes cuts to outside organizations, elimination of recreational activities such as the outdoor ice rink and the Mill Pond boat, a storm water management fee and, for 2004, $600,000 in position cuts. The city has proposed an early retirement package they hope will off-set the need for layoffs.

Pawlenty has said he will not raise taxes, and to ensure that cities don't either, his proposal has limits to the amount of money they can levy back from the citizens. In 2004, cities will be allowed to raise taxes, but the citizens have the option of calling a reverse referendum is they do not agree with the taxes.

"What we've heard from cities is that the levy limit provision and the reverse referendum next year almost makes it impossible for them to make any property tax increases, so they're just in cut, cut mode," Pelowski said.

Cuts to cities won't be the only topic discussed. Pelowski said he hopes to get feedback about schools, health care and any other areas affected by budget problems.

Matt Merritt can be reached at 434-2214 or by email at matt.merritt@austindailyherald.com