Dispelling LGA’s urban myth

Once termed a great equalizer of services offered by communities across the state, local government aid, or LGA as it is commonly known, has become complicated to understand.

During a recent overview by the nonpartisan House Research Department, Rep. Bob Barrett (R-Shafer) said, “You are trying to teach us college algebra and I’m looking for a solution that requires fifth-grade math.”

But it’s the purpose for which LGA was created in 1971 that was on the minds of several new members to the House Property and Local Tax Division Jan. 25. No action was taken.

“Being a former mayor, I’ve heard the urban legend, if you will, that it was for infrastructure, especially for public safety, especially fire protection,” said Rep. Joe McDonald (R-Delano).

House Research Analyst Pat Dalton said that, as far as she could determine, the Legislature put no limits on how the money could be spent.

“It was to help make sure that all cities could meet their general service needs,” she said, adding that the Legislature, over the years, has discussed tying the aid formula to public safety and infrastructure needs.

“I know one of the big discussions has been, ‘What is the purpose of LGA?’ My answer to that is the purpose of LGA is whatever you all decide is the purpose of LGA,” she said.

A major revision to LGA in 2003 was criticized for being too volatile and not meeting the needs of certain cities, such as suburbs, according to Dalton’s report. Reforms in 2008 addressed some of the complaints.

Division Chairwoman Linda Runbeck (R-Circle Pines) is organizing an LGA working group to revisit the LGA formula and criteria.

Rep. Paul Marquart (DFL-Dilworth), who chaired the division the last four years, said that starting any discussion about a LGA overhaul should not begin on a false premise.

He affirmed that it was intended for property tax relief and to support basic services. “LGA was not started to deal with law enforcement as a specific thing.”

Rep. Ann Lenczewski (DFL-Bloomington), former House Taxes Committee chairwoman, said the LGA formula needs revision; noting, that it may be a politically difficult decision for some, especially for members in districts where communities rely heavily on the state aid.