Crookston relies on LGA dollars perhaps more than any other city in Minnesota
After a tax bill veto during the 2018 session of the Minnesota Legislature doomed any chances of a Local Government Aid (LGA) increase for Crookston and other cities, the Coalition of Greater Minnesota Cities is looking to make LGA a priority when the legislature convenes in 2019.
Crookston is perhaps the most LGA-dependent city in Minnesota in relation to the amount of property tax revenue the city, considered property tax wealth-poor, brings in. While Marty Seifert, who lobbies for the CGMC, notes that raw LGA levels – not adjusted for inflation – are still around $30 million short of where they were in 2002 before they were drastically cut back, he notes that Crookston has in recent years and continues now to do pretty well when it comes to its LGA allocation from the state.
In 2002, Crookston received $2,957,069 in LGA. While there have been a couple of minor dips in the years since as well as a four-year stretch with no increases, since 2013 Crookston’s LGA allocation has been on a very slow climb, and in 2018 it received $3,700,601 in LGA. The CGMC sought a $30.5 million LGA increase in the 2018 session, which would have boosted Crookston’s allocation by around $167,000, but the veto nixed that possibility.
Still, Seifert said in a recent legislative update to the Crookston City Council, “You guys are sitting pretty good, frankly” when it comes to LGA funding.