Posts Tagged ‘city LGA’

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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Aids & Credits Down, Property Taxes Up

Homeowners’ property tax effort is feeble and property tax aids and credits provided by the state of Minnesota are adequate—if not robust—according to a recent article from the Minnesota Center for Fiscal Excellence (MCFE), formerly the Minnesota Taxpayers Association. This conclusion, however, is based on property tax and state aid information that is selectively presented…

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City & District Info on Potential Special Session LGA

Last week, North Star discussed potential outcomes in regard to city Local Government Aid (LGA) if there is and if there is not a 2016 special session. If there is no special session, city LGA in 2017 will be distributed under current law. For most cities, this will translate into a tiny aid increase in…

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Local Government Aid During a Potential Special Session

An August North Star article described the main effect of no 2016 special session: a larger state budget reserve. The same article noted some of the likely effects if there is a special session, including “an increase in state assistance to local governments.” With renewed discussions among the Governor and legislative leaders regarding a special…

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