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Municipal Revenue & Taxation <br />2013 statutory modifications to the LGA formula improvedprogram factors to betterrecognize <br />city needs and capacities. However, the distribution of aid continues to be geographically <br />disparate,andunstableforsomecities. Several metropolitan cities have experiencedprecipitous <br />and significant reductions in aid. <br />Metro CitiessupportsfurtherexaminationoftheLGA formulaand capacity and need <br />factors,the distribution of aid between metropolitan and non-metropolitan cities, and <br />stabilityfactorsin the distribution of aid.A review should includeopportunities for input by <br />metropolitancityofficials asprogrammodifications areconsidered, to ensure thatformula <br />factors adequately reflect capacities,needs and circumstances ofmetropolitan cities. <br />To ensure appropriation levels are adequate to meet program objectives, Metro Cities <br />supportsincreasingtheLGAappropriationtoaddresscitiesÓunmetneedasdefinedbythe <br />LGA formula as well as increases in the LGA appropriation to account for inflation. By <br />way of reference, the total need identified in the LGA formula for 2020 is estimated at $745 <br />million,whereasthe currentfundingissetat$564.3 million,puttingtheremainingneedat <br />$180.7 million. <br />MetroCitiessupportsformula-based allocationsforincreasesto theLGA appropriation, <br />and opposes freezes of the LGA appropriation, reductions of LGA for balancing state <br />budget deficits,anddiversionsoftheLGAappropriationtootherpurposesorentities. <br />MetroCitiesalsoopposesartificiallimitsorreductionsthat singleout specificcities,and <br />further opposes using LGA as financial leverage to influence activitiesandpolicy <br />decisions atthelocallevel. <br />1-GStatePropertyTaxReliefPrograms <br />Metro Citiessupportsstatefundedpropertytaxreliefprogramspaiddirectly tohomestead <br />property taxpayers such as the Ðcircuit breakerÑ program and enhanced targeting for <br />special circumstances. Metro Cities also supports the renterÓs credit program. Metro Cities <br />supports an analysis of the stateÓs property tax relief programs to determine their <br />effectiveness and equity in providing property tax relief to individuals and families across <br />thestate. <br />MetroCitiessupportseffortsbytheMinnesotaDepartment ofRevenuetoexpandoutreach <br />and notificationeffortsaboutstatepropertytaxreliefprogramsto homeowners,and <br />notifications to local units of government to support such efforts. Metro Cities alsosupports <br />legislativemodificationstomaketaxreliefpaymentstotaxpayersautomatic. <br />Metro Cities supports the use of the Departmentof RevenueÓs ÐVossÑ database to link <br />incomeand propertyvalues,and theconsiderationofincomerelativetoproperty taxes <br />paid in determining eligibility for state property tax relief programs. Updates to the database <br />shouldoccurinatimelymanneranddatareviewedperiodicallyto ensurethedatabaseÓs <br />accuracyandusefulness. <br />2022 Legislative Policies <br />4 <br /> <br />