For Immediate Release
February 8, 2023
Contact: Alex Wildfang
651-259-1917
ahwildfang@flaherty-hood.com
Cities and counties united in pressing for more aid
Bill to increase Local Government Aid and County Program Aid appropriations by $150 million each praised by city and county organizations
ST. PAUL—Today, HF 1377 – a bill to increase the Local Government Aid (LGA) and County Program Aid (CPA) appropriations by $150 million each – received its first hearing in the House Property Tax Division. The bill, authored by Rep. Dave Lislegard (DFL-Aurora), is supported by the League of Minnesota Cities, the Association of Minnesota Counties, the Minnesota Inter-County Association, the Coalition of Greater Minnesota Cities, Metro Cities, and the Minnesota Association of Small Cities.
“We are very grateful to Rep. Lislegard for bringing this proposal forward. He has always been a strong advocate for local governments across the state,” said St. Louis County Commissioner Paul McDonald.
The most recent increases to LGA and CPA were approved during the 2019 legislative session. Despite those increases, both programs remain funded at roughly the same level as in 2002. “The LGA and CPA programs form the cornerstone of the state’s partnership with local governments to ensure that all Minnesotans receive high-quality public services statewide,” said Mayor of Virginia Larry Cuffe. “The state calls upon the counties to implement all manner of programs related to health and human services, corrections, child protection, environmental stewardship, and more. CPA is critical to helping counties fulfill that mission,” according to Olmsted County Commissioner and Minnesota Inter-County Association Board member Sheila Kiscaden.
“For cities, LGA helps us provide the public safety, libraries, parks and recreation, safe streets, and water and wastewater services that our residents and businesses rely on. LGA helps make for thriving and strong communities in every corner of the state,” said Mayor of Olivia Jon Hawkinson.
In addition to being a key element in delivering essential services, LGA and CPA help restrain property tax levies. “Just as inflation is hitting individuals and businesses, it is also putting pressure on local governments,” explains Ramsey County Commissioner and Association of Minnesota Counties President Mary Jo McGuire. “Salaries and benefits, gas for squad cars and parts for vehicles, and the cost of building materials are all going up. Without increases to LGA and CPA, all of these costs fall on property taxpayers.”
In addition to LGA and CPA not keeping pace with inflation, both programs have declined as a share of the state budget. For example, in 2002, LGA accounted for approximately 4% of the state budget. This year, LGA accounts for only 2.1%.
“Local governments rely upon a strong partnership with the state, and local government aid plays a crucial role in that partnership,” said Coon Rapids City Manager and Association of Metropolitan Municipalities President Matt Stemwedel.
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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC at greatermncities.org and follow us on Twitter @greatermncities.
