Posts Tagged ‘city aid’

State Aids: The Shrinking Slice of the City Revenue Pie

City property taxes have increased significantly in recent decades. Even after adjusting for inflation and population growth, the property taxes collected by Minnesota cities have increased by 48% from 1990 to 2018. However, real (i.e., inflation-adjusted) per capita city revenues are down over the same period. The rapid growth in property taxes and the decline…

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State Aid Decline Coincides with City Property Tax Increases

Some state elected officials regularly express angst about the growth in city property taxes, blaming local elected officials for this trend. However, this is a case of misplaced attribution. True, city property taxes have increased since 2000. However, the primary culprit behind property tax hikes are reductions in other city revenues—most notably, state aid. The…

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2018 Local Government Aid Funding in Perspective

Local Government Aid (LGA) has long been an important source of funding for city services and property tax relief. A 2018 LGA funding hike provided valuable new resources to cities, but not quite enough to keep pace with inflation and population growth from 2017 to 2018. Today total real (i.e., inflation-adjusted) per capita (per person)…

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City LGA Differences Among Various Plans

Governor Dayton’s city Local Government Aid (LGA) proposal increases the LGA appropriation in the upcoming two year budget, while the House freezes the appropriation and the Senate cuts it, as noted in the preceding North Star article. Knowledge of the appropriation alone, however, does not tell us how much aid individual cities will receive. In…

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City Aid Declines Under Most LGA Proposals

For the last four and a half decades, the city Local Government Aid (LGA) program has helped cities fund essential services and control property tax levels, but in real (i.e., inflation-adjusted) dollars per capita, city LGA is currently less than half of what it was in its peak year of 1990 and about 20 percent…

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