Cities around Minnesota are bracing for the fallout from a multi-billion dollar state budget deficit.
State finance officials will lay out Minnesota's budget situation this morning at 11 a.m. Some cities, such as St. Cloud, get nearly a quarter of their funding in the form of state aid.
In total, Minnesota pays out nearly half a billion dollars a year in local government aid.
St. Paul mayor Chris Coleman said his city has already cut back hiring and other expenses to prepare for what is likely to be a grim financial picture for 2009.
"We took action a couple of months ago, to, not to put a freeze, per se, on, but to really control our spending and to control any empty positions. And make sure that if they were going to be filled, that they were necessary to fill those. Obviously this is not a surprise, the state budget situation, the national economy is in tough shape," Coleman said.
Coleman worries that the state deficit could be as high as $6 billion.