Wednesday, June 29, 2011

Court sides with League of Minnesota Cities on payment of local government aid and other appropriations

Earlier today, Chief Ramsey County District Court Judge Kathleen Gearin issued an order directing the State’s Commissioner of Management and Budget to “make payments such as LGA [local government aid] payments that have already been lawfully appropriated” in the event of a state government shutdown. The ruling--as it stands--ensures that cities should receive LGA appropriations on July 20, as scheduled.

Judge Gearin’s ruling is consistent with arguments the League presented in a response to the State Attorney General’s petition on funding of core functions of government. That response was co-signed by the Coalition of Greater Minnesota Cities and the City of St. Paul. In the response and in verbal testimony at a subsequent hearing, the League maintained that standing appropriations, including LGA, market value homestead credit (MVHC) reimbursement, police and fire pension aids, and utility value replacement aid for cities should not be withheld or delayed if a shutdown occurs.