SAINT PAUL, Minn. – Today, the Minnesota House Property Tax Division recapped the historic new investments in Local Government Aid and County Program Aid lawmakers delivered during the 2023 legislative session. The committee, chaired by Rep. Dave Lislegard (DFL – Aurora), highlighted the new funding from the Legislature’s 2023 Tax Bill and heard from local leaders across the state about how it’s making a difference in their communities.
“LGA and CPA are essential tools for local governments to provide the critical public services residents count on while keeping property taxes in check,” Rep. Lislegard said. “As a state, we ask our cities and counties to do a lot, but for many years we didn’t provide them adequate resources. Last year, we were only able to get this transformative package of investments across the finish line because of the strong advocacy by our cities and counties to express their challenges and how the state of Minnesota can have a more effective partnership with them.”
LGA amounts are set through a formula determining a city’s “unmet needs,” calculating the city’s size, tax base, and other factors. In 2023, lawmakers increased the annual investment in LGA by $80 million, bringing the total appropriation to $644,398,012. The Legislature also increased the amount of CPA by $80 million each year, bringing the total amount to $344,668,444.
Additionally, lawmakers invested a one-time amount of $300 million for Public Safety Aid, with 30% going to counties and tribal governments and 70% to cities and towns based on populations.
St. Louis County Commissioners Annie Harala and Paul McDonald spoke about the value of the new resources toward transportation infrastructure, public health, and human services, with the new investment representing 3% of the county’s levy.
“I’m committed to further strengthening our government-to-government relationship, and today’s hearing was an important piece of that vision,” Rep. Lislegard added. “I’m especially grateful to Commissioners Harala and McDonald for coming down to offer their perspectives and thank them for their dedication to our region.”
Stearns County Commissioner Tarryl Clark; Lac Qui Parle County Commissioner Todd Patzer; John McCarthy, Director of Financial Services for the City of Saint Paul; Dan Matejka, Goodview City Administrator; and Jay Stroebel, Brooklyn Park’s City Manager, also discussed the positive impact of the new LGA and CPA resources.
More information from the hearing is available on the division’s webpage and video of the hearing is available on the House Public Information Services YouTube page.
St. Louis County Commissioners Annie Harala and Paul McDonald testify before the House Property Tax Division – chaired by Rep. Dave Lislegard – on February 21. (Photo by Andrew VonBank)