As Governor Tim Walz and state lawmakers wrestle with how to handle a projected $2.4 billion budget deficit amid COVID-19, the Coalition of Greater Minnesota Cities (CGMC) is wondering what might happen to Local Government Aid (LGA) funding for local communities. Walz says at this point everything is “on the table” to help manage the deficit, and adds:
“I am deeply concerned about local budgets. I view it as our responsibility to figure out how to be partners with them to get that out.”
The CGMC says during COVID-19, “there is deep anxiety among city officials” about the potential for lost revenue from reduced property tax collections, fees and local taxes. The group says it’s vital that the state makes its regularly scheduled LGA payments in July and December.