Joining with local elected officials across the state, Mayor Coleman commended Governor Dayton and Minnesota legislators for renewing the partnership with local governments and including funds in the 2013-2014 state budget for the stabilization of property taxes.
“I have traveled to every corner of the state to meet with local elected officials, business leaders and residents in the past several years,” Saint Paul Mayor Chris Coleman said. “Every time, the resounding message was: We need additional LGA to help stabilize property taxes. After more than a decade of declining local government aid, this investment is a welcome change of pace. The Legislature and Governor Dayton took decisive action and renewed the long-standing partnership with local governments. With these funds, residents can continue to count on the consistency of crucial services like police officers and firefighters.”
Local government aid was established in the 1971 Minnesota Miracle as a partnership between cities and the state. The partnership recognized cities’ significant local sales tax contribution to the state, and the importance of ensuring that the funding of basic local needs, such as police and firefighter services, would not be placed on the backs of middle-class families. Over the past decade, as local government aid has been persistently cut, property taxpayers have seen an 86 percent increase in their property tax bills—an unacceptable burden on middle-class families across the state.
“LGA builds infrastructure, it keeps our residents safe, and it strengthens the local economy,” Mayor Coleman continued. “This legislature and this governor understand that strong cities equal a strong state. The additional LGA for Minnesota cities will help continue Minnesota’s reputation as the best place to live, work and raise a family.”
The City of Saint Paul received $50,320,000 in local government aid in 2013. In the 2014 tax bill, the City of Saint Paul expects to receive $60,413,000 in LGA, accounting for approximately 20 percent of the city’s general fund budget and the largest increase since 2002 when LGA was indexed to inflation. Governor Dayton is expected to sign the tax bill within three days of passage by the Minnesota House and Senate.