According to this Burnsville Patch article under proposed legislation Moorhead Rep. Ben Lien (DFL-4A), some of the 107 cities which now are exempt from receiving Local Government Aid dollars from the state would again be receiving the money and the rest of the cities in the state that already do would see a more consistent dollar amount each year. The real question, however, is what governments like Burnsville will do with $86,000.
From the article:
It would also create a new formula that adjusts aid based on its “aid gap”—a product of how the formula determines “unmet need,” according to the House Research bill summary. For so-called “large cities” that have more than 10,000 people, including Burnsville, the formula considers three factors in determining need per capita:
Jobs per capita,
Percent of housing built before 1940 and
Percent of housing built between 1940 and 1970.
LGA is intended to help cities with greater needs than they can reasonably expect to fund through property taxes. In most cases, the money goes into a city’s general fund, to be spent however city officials deem necessary.
While Burnsville has been lobbying against the loss of these dollars for years and the Mayor is more than likely literally jumping up and down for joy, do cities the size of Burnsville which have such important funding priorities as city monuments at their borders need $86,000 more dollars from the taxpayers to fill this ‘unmet need’ with dollars they just simply could not have raised through property taxes alone?
Do you think Minnesota’s redistribution plan is one which works well? Do you think Minnesota cities should collect their own taxes as they do in other parts of the country so that the issues cities have with LGA are eliminated (redistribution of wealth where the larger cities end up supporting rural areas)? When you read the Mayor is likely literally jumping for joy did you see, in your minds eye, Frau Farbissina doing so? Whatever you have to say about this one go ahead and comment on as I’d love to hear your thoughts.