Making rural Minnesota a great place to live

The Coalition of Greater Minnesota Cities (CGMC) has spear-headed legislation that would greatly benefit many communities in rural Minnesota, including Grand Rapids. Local Government Aid (LGA) is designed to help equalize each Minnesota City’s ability to provide basic services. The CGMC has been leading an effort to revise the formula used to calculate LGA and to increase the appropriation. House File 1377 includes a revision of the formula used to calculate a city’s need, a $150 million increase in the appropriation, and factors that deal with the effects of inflation and population growth. Senate File 1828 has identical provisions. The revised formula was the result of an extensive and rigorous review by a group that included non-partisan staff from the House and Senate and staff from the Department of Revenue. The formula objectively evaluates a city’s need and compares that to a city’s ability to meet that need (city tax base multiplied by a statewide average city tax rate). Under current law Grand Rapids will receive $1,821,919 in 2024. If the legislation becomes law Grand Rapids would receive $2,573,856. This increase in LGA may mean the City can lower its tax rate, resulting in a decrease in business and residential property taxes. At the very least it will lessen the pressure to raise business and residential property taxes to fund needed increases in the city budget. Please take the time to contact your Minnesota State Senator and Representative and ask that they support this common-sense legislation. Here is their contact information:

Rep. Ben Davis (House District 6A): 277 State Office Building, St. Paul, MN 55155/651-296-0172/Email: rep.ben.davis@house.mn.gov