The county will form a special committee to discuss ways to tackle anticipated state budget cuts.

Administrator Ron Gabrielsen will make a proposal to form the committee, consisting of representatives from commissioners, county departments and citizens.

The scope of cuts and their impact on the county budget is still uncertain. But, the county forecasts it could lose as much as $800,000 in the next payment from the state in June, according to Gabrielsen.

Gabrielsen expects the new committee to scrutinize the expenditure structure of county government, and pin down areas where it can reduce spending. In addition to eliminating non-mandated services, Gabrielsen suggested that trimming office hours would be an option.

In 2003, the county is receiving $1.65 million as Homestead and Agricultural Credit Aid (HACA), which is equivalent of the local government aid to the cities, to improve the general fund balance. Besides, the state is supposed to pour about $1 million into various social-service programs and $4.35 million to the County State Aid Highway projects.

The Association of Minnesota Counties warns if all of the state aid us removed, the county would have to increase its property tax levy by 23.63 percent to make up for the reduction.