Posts Tagged ‘state aid to cities’

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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City Spending Drops Significantly Since 2000

Some conservatives like to complain about growth in city spending. In reality, spending by Minnesota cities has fallen significantly since the beginning of the century, after properly adjusting for inflation and population growth. The vast majority of this reduction has been in cuts to capital spending, which includes funding for city infrastructure. The Office of…

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Aid, Tax, and Revenue Trends in Three Cities

In recent decades, steep reductions in state aid to Minnesota cities have resulted in significant increases in real (i.e., inflation-adjusted) per capita city property taxes and reductions in real per capita city revenues. Aggregate city data, however, can conceal what is happening within individual cities. This article will focus on city property tax, state aid,…

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State Aid Ups & (Mostly) Downs for Cities

Except for a few intermittent spikes, state aid to Minnesota cities has trended downward since 1990. In general, cities have dealt with declining state aid through a combination of property tax increases and budget reductions, although the city response to aid vicissitudes has varied over time. The following analysis will focus on the total “revenue…

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