$23 million cut from Minneapolis local govt. aid

John Hageman

The city of Minneapolis will have to do some financial maneuvering to make up for a $23 million cut in Local Government Aid, Mayor R.T. Rybak announced Thursday.

The cut, part of the stateâÄôs tax bill signed by Gov. Mark Dayton Wednesday, will force the city to slice the cityâÄôs 2011 paving program in half and shed almost $3 million to the police and fire departments, among other measures. The cuts were approved in December in case the state failed to deliver the $87.5 million in state aid that was previously certified for 2011.

LGA helps fund city services like police and fire departments across the state. Due to cuts to state aid in recent years, cities have become more reliant on property taxes to fund these services.

âÄúReluctantly, we must make the cuts that we said we would make, because the state has left us no choice,âÄù Rybak said in a statement.

House Republicans proposed a version of the bill during the Legislative session that would have cut LGA completely from Minneapolis, St. Paul and Duluth.

Rybak has previously made the case that the city is an economic engine for the state. According to the release, the state collects more than $450 million in taxes from Minneapolis per year, yet continues to cut back on state aid.

The state will pay $64 million to Minneapolis this year.