Stinson's analysis showed cities and counties would sustain 40 percent of the job losses under Pawlenty's plan. The governor intends to cut $300 million in state aid to local governments. Stinson predicted cities and counties would respond by eliminating 1,630 to 1,970 jobs over the next two years.

Cities already have reduced staffs by 9 percent since 2002, Jim Miller, executive director of the League of Minnesota Cities, told the commission. The next round of cuts will have "very, very serious impacts" on local government services.

Stinson said state agencies, including colleges and universities, are expected to eliminate 870 to 1,630 positions after Pawlenty cuts their budgets by 2.25 percent.

The governor plans to delay $1.8 billion in state aid payments to school districts, resulting in the loss of 300 to 600 faculty and staff jobs, Stinson said.

He estimated private employers, including health care providers and social service agencies, would abolish 500 positions after Pawlenty cuts $236 million in health and human services funding.

Those job losses represent one-sixth to one-eighth of 1 percent of employed Minnesotans, he said.

But Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, warned against belittling the loss of jobs. Coming on top of rising unemployment numbers, he said, "We're going in the wrong direction."