The distribution to cities was increased by $15 million under the special session tax bill.
(Published Jul 31, 2017)
The Minnesota Department of Revenue (DOR) has posted information on the officially certified 2018 local government aid (LGA) distribution for all cities. The certified amounts supersede any earlier estimates provided at the end of the 2017 legislative session by the Legislature and the League.
The LGA distribution includes the additional $15 million appropriated by the Legislature and approved by Gov. Dayton in the special session omnibus tax bill, bringing the total LGA appropriation to $534.4 million.
New email registration requirement
The 2017 omnibus tax bill also included a new requirement that each city register an official city email address with the DOR in order to receive LGA. The requirement is effective for the 2018 distribution.
The League will work with the DOR in the coming months to inform cities of the procedure to register an email address with the department.
Looking to 2019
For 2019, the LGA appropriation is currently scheduled to remain at $534.4 million. However, the Legislature could increase the appropriation for the program during the 2018 session.
The 2017 tax bill includes a modification to the 2019 LGA payment timeline. For the 2019 distribution only, each city will receive LGA in three payments—14.6 percent of the total will be paid on or around June 15; 35.4 percent will be paid on or around July 20; and the remaining 50 percent will be distributed on or around Dec. 26. Currently, LGA is distributed in two equal installments paid on July 20 and Dec. 26.
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