To make it through the economic down turn, many businesses have had to make cuts. Now, government agencies in Iowa are being asked to do the same.

Revenue for the state of Iowa is coming up short. That has the governor asking for ten percent cuts across the board. That will impact state government and local government here in northwest Iowa.

"There's no question its going to have an effect, and the effect may not be felt this year, it may be next fiscal year that it's really felt," Dick Heidloff said.

Dick Heidloff is the treasurer for Lyon County Iowa. He says while state agencies work to find ways to reduce a collective 565 million dollars from the current budget, schools could be one of the hardest hit areas. Of the three districts in Lyon County, they could lose anywhere from 500-thousand dollars, up to a million dollars.

"What's going to happen is, next year, they got to make that up some how. Barring something happening, I can see property taxes, at least from the schools, going up next year. That's a big part of the taxes here in Lyon County," Heidloff said.

Heidloff also wouldn't be surprised if the state reduces the number of credits they refund back to counties. One example of that are homestead credits. One thing going for Lyon County is that the state has already paid the full amount to the county for the Agriculture Land Credit, so that can't be cut. But Heidloff says with so many uncertainties, the road ahead could get bumpy.

“It gets to be a vicious circle sometimes, and so everything has a cause and effect and some of it good, some of it bad," Heidloff said.

And for now, northwest Iowa residents can hope the long-term benefits, will outweigh the short-term negative effects of the state cuts.