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LGA debates continue in St. Paul with implications for Perham

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Cities throughout the state fear that a tax bill passed by the Minnesota House of Representatives on March 28 could mark a phasing out of local government aid (LGA).

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The bill, which passed by a vote of 73-59, lowered state aid to local governments and cut income taxes.

According to the terms of the bill, the 2011 LGA for most cities would be funded, but the 2012 amount would be reduced to 2010 levels. Duluth, St. Paul and Minneapolis would all be weaned from LGA by 2015.

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