Tuesday, June 16, 2009

Governor cuts nearly $193 million in state aid to cities
This afternoon, Governor Pawlenty announced his plans to eliminate the remaining $2.7 billion state budget deficit. His plan includes $64.2 million in cuts to local government aid (LGA) and market value homestead credit (MVHC) reimbursement for cities in 2009, and $128.3 million in 2010 cuts. The 2009 cut will be computed as 3.31 percent of each city’s levy plus aid. For 2010, the percentage reduction will be increased to 7.64 percent. Cities with populations under 1,000 that also have below average property tax bases will be exempt from cuts in 2009 and 2010.
View a spreadsheet from the Department of Revenue showing a city-by-city list of the cuts (pdf)