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St. Cloud To Benefit From Additional LGA Funds [AUDIO]

Mayor Kleis LGA
Photo by Adam Ulbricht

ST. CLOUD — Lawmakers in St. Paul put an end to a ten year trend of declining Local Government Aid after investing $80 million into the program.

Minnesota Revenue Commissioner Myron Frans joined St. Cloud Mayor Dave Kleis in highlighting an increase of Local Government Aid to communities around the state. St. Cloud will see an additional $1.7 million next year.

Kleis, who co-chairs Governor Dayton’s Mayors Tax Reform Advisory Group, says the money will be helpful, but doesn’t make up for 10 years of declining funds.

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Residents around the state have seen property tax increases due to declining LGA funds.

St. Cloud will see its LGA increase from $10.1 million to $11.8 million next year. Kleis says the extra funds will help soften or eliminate any potential cuts the city would have to make in the next budget.

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Kleis says the City of St. Cloud currently generates $75 million in sales tax, alone, while only receiving 13% back from St. Paul through LGA. Under the new formula, the city will receive 16% of a return.

The state government will give out $506 million in LGA in 2014 – an increase of 18.5%.

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