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State of MN Financing Local Government in the 1980's
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State of MN Financing Local Government in the 1980's
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Financing Local Government in the 1980's
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law <br />Special Report of VRT & CO. <br />Page 14 <br />Lobbying activities were precipitated by certain Cities to obtain modest (less than <br />5 %) increases to their portion of Local Government Aid without a corresponding increase <br />for all other Cities and the total Local Government Aid Program. Modest increases for <br />selected Cities resulted in substantial decreases for other Cities. An analysis of <br />Local Government Aid grouped by size of payments illustrates this point. <br />Range of Payments <br />Under $100,000 <br />$100,000 - $250,000 <br />$250,000 - $500,000 <br />$500,000 - $1,000,000 <br />$1,000,000 - $10,000,000 <br />Over $10,000,000 <br />Totals <br />State Total - 1983 <br />Cities Amount <br />No. Percent (in $1,000's) Percent <br />591 69.13% $ 16,652 7.21% <br />143 16.73 22,807 9.87 <br />48 5.61 16,239 7.03 <br />38 4.44 28,311 12.25 <br />33 3.86 67,545 29.24 <br />2 .23 79,464 34.40 <br />855 100.00% $ 231,018 100.00% <br />As shown above, 1983 local government aid payments are allocated in such a manner <br />that 34% of total aid is paid to the largest two Minnesota Cities. Additionally, 76% of <br />total aid is paid to 9% of all Cities. For these Cities (those paid $500,000 or more) <br />to receive a 5% increase, the remaining Cities would be decreased by 16% without addi- <br />"' tional total aid being provided by the State. <br />
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