On Wednesday, the Senate Taxes Committee heard testimony on the $300 million tax plan Governor Dayton proposed last month. The broad-ranging proposal includes a $20 million increase in LGA. While a $20 million increase would be a step in the right direction, the CGMC’s top priority continues to be restoring LGA to its 2002 funding level, which would require an increase of $45.5 million.
CGMC lobbyist Bradley Peterson testified in front of the committee. Peterson thanked the Governor and legislators for recognizing the vital role LGA plays in allowing cities to provide essential services like fire and police, and helping to hold down local property taxes. However, he made clear to the committee that the conversation on LGA increases should begin at $45.5 million, not at $20 million. He urged the senators to support legislation proposed by Sen. Bill Weber (R-Luverne) that would fully restore LGA to its 2002 level over the course of two years. Weber’s bill, SF 476, has been referred to the Senate Taxes Committee. The House version of the legislation, HF 672, was introduced by Rep. Paul Anderson (R-Starbuck), with broad, bi-partisan support.
The CGMC will continue to advocate for a substantial increase in LGA funding, and will make clear to the Legislature that the 2017 session cannot be considered a success unless they pass a comprehensive tax bill that includes additional LGA funds.