"For 2009, we are adequately situated. We will weather the rest of 2009 with our amended budget," said Tim Houle, county administrator.

The county stands to lose $436,000 in general county program aid from the state in 2009. Crow Wing County commissioners in January had adopted an amended 2009 budget that was reduced by $1.2 million.

In 2010, the county will see a projected $885,000 loss in general county program aid, which is less than the $1.2 million loss Houle predicted.

Besides the unallotment of general aid counties receive because they perform so many functions on behalf of the state, counties will see targeted reductions in human services.

"There were a smattering of targeted grant reductions in the human services arena," Houle said. "At first blush, those were worse than expected."

For example, the county expects a block grant it receives for the Community Social Services Act and child protection to be reduced by $300,000.

There are many pieces to the county's budget puzzle, Houle said, including state revenues and county expenses. The gap between revenues and expenses is the property tax.

"This board has been very clear that any levy increase that's different from the rate of inflation won't be acceptable," Houle said.

"So I don't expect to pass a reduction in state aid to a higher property tax.

"Our efforts will be on the expense side of the ledger, not the revenue side of the ledger," he said. "Commissioners have said we will live within our means."

The 2009 amended budget included staff reductions and layoffs.

Now, the county will focus on retaining critical services, which include transportation, public safety, social safety net and environmental protection.

"The things we are discontinuing we are selecting because they are lower priorities and they have the least impact on the public," Houle said.

The county board has prioritized public services, identifying and ranking every county service.

"Not all we do is equally important, so we look for what we can do without and what's further removed from mission critical services," Houle said, noting it's just like what a family goes through in ups and downs. "You have to respond to changing economic circumstances.

"It's particularly hard for us because at a time when we're forced because of limited resources to tighten our belt, we're seeing a substantial increase in the volume of services being requested," Houle said.

"That's why we carry fund balances, like a savings account, so we can weather these kinds of storms less painfully by using our savings where it's appropriate. We won't use that to fund ongoing expenses," he said.

Commissioner Paul Thiede, who represents the northern lakes area, didn't see the unallotment to Crow Wing County as a major hit.

"I think that Tim (Houle) and the board have positioned us to absorb more of the unallotment than some other counties might have," he said. "Last year's budget, we held the line on it. We eliminated some positions last year. We've done a lot of reorganizing in the county, and for those reasons, this unallotment is hitting us a lot less seriously."

Thiede said at the beginning of the budget cycle, the county didn't anticipate receiving more state aid. It didn't know how much less it would receive, but with Houle and the leadership team, the county was able to be on target with its budget.

Houle said, "Under the current circumstances, I think this is all perfectly well to be expected. Is it a crisis for us? No, it is not.

"I don't see this as a crisis. I see this as a change," he said.