The CGMC recently developed an online tool that allows cities to see how they compare to the per-capita LGA of first class cities, who are targeted for cuts in the House GOP’s tax bill. The House proposal would limit the cities of Minneapolis, St. Paul and Duluth to 112.5% of the average per-capita LGA amounts for all cities. A few GOP legislators have claimed that these cities have high tax bases or receive more per-capita LGA than other cities, which necessitated cuts to their LGA. However, this is simply untrue.
The CGMC found that an additional 618 cities would be impacted if the same restrictions were applied to them, which shows that these first class cities are clearly not outliers when it comes to their tax bases or per-capita LGA.
To see how your city currently ranks in terms of tax base, LGA formula need and amount of LGA funding, and to see how it would fare if the House GOP proposal were expanded to all cities, go to https://greatermncities.org/cgmc-tools/impact-of-houslied-statewide/.