The Senate Committee on Taxes released its omnibus tax bill last night. This bill includes cuts to local government aid, or LGA, with a 3.1% cut to Duluth’s LGA. The following is a statement by Mayor Roger J. Reinert regarding the proposed cuts to LGA in SF 2374:
“These proposed cuts would take $1.1 million dollars out of the city general fund budgets. LGA is our single largest source of revenue and comprises nearly one third of our total income. Any cuts to LGA will translate directly to a reduction in the delivery of City of Duluth services.
This proposed cut also highlights a concern I have raised repeatedly: the City’s heavy reliance on LGA. It has proven to be an unpredictable source of state aid over the years. We must continue to make it a priority to grow our own tax base in order to be more financially self-sustaining.”
Mayor Reinert has cancelled his Thursday schedule and will be traveling to the State Capitol to address these proposed cuts.
-- Press Release
