Yesterday, the Governor, House DFL and Republican Leadership, and Senate DFL leadership agreed to a global state budget framework to complete the legislative session. The agreement provides high-level guidance to budget conference committees and negotiators on individual bills, such as the Omnibus Tax Bill.
BACKGROUND
The global budget agreement reached by legislators and the Governor did not single out Local Government Aid (LGA), but it did confirm that legislators are looking to cut nearly $120 million in spending on “taxes and local aids.” CGMC members will recall that last week, the Senate proposed an LGA cut of $20 million per year. They later scaled that proposed cut back to $10 million per year, but news of the budget agreement resets all assumptions about the potential fate of LGA, and we fear that significant LGA cuts may still be on the table during final negotiations.
While some conference committees may finish their work before Monday’s adjournment deadline, it is clear that a short special session will be required to finish the state budget. Still, a final agreement on the composition of the tax bill is being negotiated as we speak, so we cannot waste any time in fighting to protect LGA.
We need your help to protect LGA!
ACT NOW:
Contact your House and Senate members as soon as possible and tell them to oppose any LGA cuts.
Tell them:
- At a time of financial stress, the state should focus on the fundamentals of government. LGA helps cities provide those fundamental services such as police, fire, infrastructure, etc.
- An LGA cut—coupled with other challenges such as inflation, uncertainties unfolding at the federal level, and the implementation of Paid Family Medical Leave (an unfunded state mandate)—will result in higher property taxes and less in local government services.
- Because of Greater Minnesota’s lower tax base relative to the Metro, any LGA cut will have a disproportionate impact on Greater Minnesota.
- Unlike other programs, the LGA appropriation is static and not tied to inflation. Before cutting LGA, lawmakers should look closely at those programs that currently grow on auto-pilot.
Contact info:
- Click here to email House and Senate legislative leaders. If the link does not work in your email, you can find contact info for House leadership here and Senate leadership here.
- Click here to email the Tax Chairs.
- Find your legislators’ contact information here.
Questions?
If you have any questions about tax legislation or this Action Alert, please contact CGMC Executive Director Bradley Peterson at bmpeterson@flaherty-hood.com or 651-357-7369.
