Albert Lea city leaders had a limited dose of hope after hearing that Gov. Mark Dayton’s proposed budget does not include any cuts to local government aid.

Albert Lea Mayor Vern Rasmussen said at this point he was happy to see the governor’s proposal, especially when it came to LGA, but he understands there’s a long way to go before any proposals are finalized.

“While we do appreciate the fact that the governor appreciates the importance of governments in the rural area, we’re going to be quietly optimistic,” Rasmussen said.

Dayton’s proposal comes after initial budgets were submitted by both the state House and Senate. Both of their budgets called for reductions in LGA.

Since seeing those budgets, city officials have repeatedly voiced their concerns about protecting the aid.

Interim Albert Lea City Manager Pat McGarvey said he thinks Dayton’s proposal would protect property-tax payers and ensure that communities across the state remain strong financially. This will help them provide “acceptable municipal services that keep the entire state competitive and desired places to live and do business in.

“Will the final state budget outcome be different than his current proposals? In my view, yes,” McGarvey said.

Freeborn County Administrator John Kluever said he hasn’t seen the numbers yet of county programs that might be affected by the proposal, but from his initial understanding the Department of Human Services will see a substantial hit. Look to the Tribune for more about this proposed reduction.

The Democratic governor’s plan would raise nearly $2.9 billion from the top 5 percent of taxpayers, including a new property tax on homes valued at more than $1 million.

It would also increase taxes on health care providers and corporations with foreign operations, while cutting almost $1 billion in spending for programs including MinnesotaCare health care and nursing homes.

The tax increases and spending cuts are contained in Dayton’s proposal for a two-year, $37 billion budget that guides more money into education but could also cost about 800 state workers their jobs.

“This is a very tough budget for very hard economic times,” Dayton said.

Dayton said his proposal would shield 95 percent of state taxpayers from tax increases, while making the top earners pay a proportionate share of income in state and local taxes. The plan would restore recent levels of state aid to cities and counties, which Dayton said would help stave off local property tax increases.

Top Republican lawmakers gave the new income taxes zero chance of passing the GOP-controlled Legislature.

“I don’t want to say it’s dead on arrival. I don’t think it has much of a heartbeat,” said Deputy Senate Majority Leader Geoff Michel, R-Edina.

Republican District 27A Rep. Rich Murray blasted the governor’s proposed budget, calling it “more of the same” and “protecting the status quo.”

“It’s heavy on the tax and very light on any kind of reform,” Murray said. “All levels of government have to participate here in real reform if we’re going to solve this thing.”

He said he thought the proposal would have been more balanced, and he criticized the tax increase proposal for the wealthy, noting it will drive investment dollars out of the state.

The governor’s plan would also make two more tax tiers and cause Minnesota to have the highest tax rate in the country, Murray said.

“He has to make some tough decisions here, and he’s not doing it,” Murray added.

Regarding the governor’s proposal to spare city and county governments from state payment cuts, he said it looked as if the governor was trying to get cities on his side.

“It just doesn’t look like he’s reforming any of it,” Murray said.

District 27 state Sen. Dan Sparks could not be reached for comment Tuesday.

Democratic legislative leaders praised Dayton’s approach but wouldn’t commit to voting for the tax increases.

Senate Minority Leader Tom Bakk said the governor’s budget delivers on the blueprint he sketched during the campaign.

“Anybody that’s outraged wasn’t listening to Governor Dayton on the campaign trail. And he did win,” said Bakk, DFL-Cook. “Well-to-do Minnesotans have been getting a really, really good deal.”