The overall local government aid appropriation is frozen at 2018 levels, but some cities will see changes in their individual distribution.
(Published Jul 30, 2018)
The Minnesota Department of Revenue (DOR) released the annual local government aid (LGA) certification notices to cities on July 30. The overall LGA distribution for 2019 was frozen at the 2018 level of $534.4 million.
The DOR has also provided a general description of the 2019 LGA formula as well as a detailed spreadsheet that includes city-by-city information for all the formula factors used in computing the 2019 LGA distribution.
The LGA appropriation has been increased by the Legislature over the past several years. However, in 2018, it did not propose an increase for 2019 or beyond. Although the 2018 omnibus tax bill was vetoed, it did not include any additional appropriation for LGA in 2019 or beyond.
The largest appropriation increase accompanied the formula adjustments enacted in the 2013 session, effective for the 2014 distribution. The 2019 LGA appropriation remains nearly $30.6 million lower than the $564.9 million distributed when it reached its peak in 2002.
If you have questions about your city’s LGA distribution, please contact Gary Carlson at email@example.com or (651) 281-1255.
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