Which MN Cities Will Receive The Most Local Gov’t Aid?
Last week, the Minnesota Department of Revenue reportedly notified cities across the state about how much Local Government Aid (LGA) they will receive, after Governor Mark Dayton’s new budget allotted an additional $80 million in funding for the 2014–2015 budget year.
So which cities are receiving the largest payouts?
MinnPost put together a map that illustrates the amount of 2014 LGA going to Minnesota cities per capita. The larger a dot on the map, the more aid a city is receiving.
MinnPost also details the formula for determining distributions among cities: In a nutshell, the Department of Revenue determines a city’s need based on population, then considers the city’s “capacity” by multiplying its tax base by the statewide average tax rate, and if there is a gap between need and capacity, some percentage will be filled with LGA. The percentage of the gap that is filled is the same for all cities receiving LGA in a given year, according to MinnPost.
To view the map displaying LGA by city, as well as a detailed, sortable table showing changes in LGA to cities over time, click here.