Minneapolis avoids layoffs despite cut in state aid

Minneapolis Mayor R.T. Rybak announced Thursday the city will be able to absorb a proposed $9 million cut in state aid without laying off employees.

Rybak told the City Council Thursday the city can handle these latest state aid cuts because officials already cut nearly $5 million out of the 2010 budget. The mayor said long-term planning and aggressive debt payment have helped the city retain money in reserve.

Rybak's proposed budget fix still calls for most departments to eliminate some vacant positions.

The mayor is also pushing for an early retirement incentive program. Finally, the mayor paused for applause after he announced that he's set aside $1 million for street resurfacing and pothole repair.