Impact of House LGA Proposal, If Limits On First Class Cities Applied Statewide

In 2015 and 2016, the House sought to cut LGA for first class cities by limiting their LGA to 112.5% of the statewide average per-capita LGA. Using MN Department of Revenue Certified 2016 LGA, this would amount to a $33.3M LGA cut for Minneapolis, a $29.9M LGA cut for Saint Paul, and a $19.9M LGA cut for Duluth. Though this proposal only impacted these three cities, it would be extremely harmful as it undermines the entire LGA program for all other cities.

A city’s LGA is based on its “formula need” and its tax base. The cities targeted by the House GOP do not receive the most LGA/capita and do not have the highest tax base/capita. In fact, if the House GOP plan were applied statewide, 618 additional cities would be impacted (using 2016 LGA). This shows that these first class cities are not outliers in the LGA they receive or in the city property tax bases they have.

Click below to see how your city would have been impacted if the same conditions of the House LGA proposal were applied to your city:

State demographer population, DOR tax base (ANTC), and 2016 DOR certified LGA used. A city is ranked compared to all cities.
*If a city has a significantly high tax base compared to its LGA need, it is not eligible for LGA and is not included in the LGA per-capita ranking.