Local Government Aid 2023 Certification Posted

August 8, 2022

The Minnesota Department of Revenue has posted the certified local government aid (LGA) distribution amounts for 2023. The overall appropriation for LGA will decline by $5.5 million for 2023 compared to 2022 due to the loss of a one-time, “hold-harmless” supplemental aid increase approved by the Legislature in 2021.

Access the LGA 2023 certification information for cities

Legislative inaction on bills reduced LGA funding

During the 2022 legislative session, the Legislature debated but did not pass a bill developed by the League of Minnesota Cities, Metro Cities, the Coalition of Greater Minnesota Cities, and the Minnesota Association of Small Cities that would have updated the nearly decade-old LGA formula. That update was based on a statistically derived set of factors to reflect new fiscal and demographic data on cities and would have increased the LGA appropriation by more than $34 million.

The Legislature also debated a second, less comprehensive bill to simply extend the 2021 supplemental hold-harmless additional aid for a second year. However, the absence of an agreement over several otherwise unrelated spending bills resulted in the failure of the Legislature to pass a tax agreement that, had it passed, would have prevented a loss of LGA to at least 150 cities in 2023.

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