ST. PAUL, Minn. – Today, a bill authored by Rep. Jason Metsa (DFL – Virginia) to fix Local Government Aid (LGA) for the cities of Biwabik and Hibbing received its first committee hearing. HF 760 contains a sparsity adjustment for the city of Hibbing, bringing its LGA formula in line with that of a medium sized city. The bill also contains a certified aid adjustment to return Biwabik’s LGA payments to 2003 levels.
“These two Range communities have been the biggest net losers under historic LGA agreements, so at its core, this bill is about fairness and equity to their local property taxpayers,” Rep. Metsa said. “To make up the difference, these cities have worked hard to collaborate and innovate, while making tough decisions such as raising their local levies. I look forward to working with Chair Drazkowski to move this legislation forward."
Joining Rep. Metsa in St. Paul for the hearing were Pat Garrity, Hibbing City Clerk, and Jeff Jacobson, Biwabik City Administrator.
“In the ten years I’ve been with the city of Biwabik, we’ve seen the LGA appropriation drop from $342,000 to $237,000 this year,” Jacobson said. “I greatly appreciate Rep. Metsa’s work to fix this and restore this responsibility back to the state.”
The bill was “laid over” for possible consideration in a larger package of property tax legislation later in the session.