One-time supplemental aid will increase the distribution by $5.2 million for 2022 only.
The Minnesota Department of Revenue (DOR) posted the annual local government aid (LGA) certification amounts to cities for 2022. The LGA appropriation for 2022 will remain at the 2021 funding level of $564.4 million. For the 2022 distribution only, the Legislature added a one-time supplemental aid totaling $5.5 million that will prevent any city from experiencing a reduction in LGA for 2022 compared to the the amount received in 2021. The supplemental aid will prevent aid reductions in 96 cities across the state.
The following table summarizes the LGA annual appropriation for each of the past 10 years and indicates the change from the preceding year.
|2013||$427.5 million||+$2.3 million|
|2014||$507.6 million||+$80.1 million|
|2015||$516.9 million||+$9.3 million|
|2016||$519.4 million||+$2.5 million|
|2018||$534.4 million||+$15 million|
|2020||$560.4 million||+$26 million|
|2021||$564.4 million||+$4 million|
|2022*||$569.9 million||+$5.5 million|
* Includes one-time supplemental aid of $5.5 million to offset losses for any city in 2022.
LGA formula up for review
In legislative discussions during the 2022 session, the House and Senate Tax Committee chairs and the subcommittee chairs indicated that the nearly decade-old LGA formula is due for a review and they are looking to city organizations for research and recommendations. The League and other city organizations will be meeting in the coming weeks to begin discussions about a process and timeline for developing recommendations.
For more information
If you have questions about your city’s LGA distribution, please contact the League’s Intergovernmental Relations Director Gary Carlson at firstname.lastname@example.org or (651) 281-1255.