Since the Legislature and governor failed to cut spending by eliminating non-essential functions from the state budget, local officials are going to pick up the slack. Expect GOP Gov. Tim Pawlenty to make further cuts (unallotments) to local government aid (LGA).
At least this situation has one upside: It may bring some serious consideration to LGA.
In a statement today to the U.S. House Budget committee, Fed Chairman Ben Bernanke sharply warned Congress and the federal government against excessive borrowing and spending.
