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Local governments are likely to struggle with how to absorb millions of new cuts the state is making in southern Arizona.

Already faced with shrinking revenues of their own due to the economic downturn, cities and counties in Arizona are complaining about millions of dollars in fund cuts and added fees the state has instituted on them to balance its own budget, passed by the Legislature late last month.

While state lawmakers have touted the fact the bipartisan budget agreement avoided deep cuts and a statewide tax increase, it’s on the local level where taxpayers may feel the real budget hits.The state’s new $9.9 billion budget went into effect last Tuesday.

Officials in Pima County, Tucson and surrounding communities are still calculating costs, but the county will take about $12 million in direct hits of state money. Statewide, counties expect to lose out on $74 million of state money.

There’s cuts in highway and road funding, added costs for local law enforcement, a potential influx in court cases due to a new photo radar program and even a required “donation” cities and counties must make to the state’s general fund.

How that impacts daily services remains to be seen, but local governments are already searching for areas to cut back — starting with fewer road improvements.