St. Paul Mayor Chris Coleman joined New Ulm Mayor Robert Buessman, North Mankato Mayor Mark Dehan, and Mankato City Council member Mike Laven in Mankato to highlight the importance of LGA to southern Minnesota and the whole state.
Greater Mankato Growth Hosts Issues Dialogue, Surveys Members on LGA
When the state is facing a huge budget deficit, money-saving ideas that reduce redundancy in services and reduce and transform government should be welcomed with open arms. Some have looked to changes in Local Government Aid to deliver such reform.
In 1971, the Minnesota legislature created the "Minnesota Miracle," a package of tax increases that funded local government aid, state aid to schools and other state aids. At the same time, new or increased local sales taxes were prohibited unless specifically authorized by the state legislature. As state aid to cities has decreased, the pressure to allow cities to use local sales taxes as an alternative to property taxes has increased sharply.
This week's CGMC Advocate debunks some of the myths regarding Local Government Aid.
The state has always played a pivotal role in local property taxes. Whether by issuing direct payments to homeowners, creating credits to reduce property tax statements or sending aid to local governments, the state has used its resources to reduce the burden on local property taxes.