Mayor: Duluth’s Local Government Aid Could Be Cut By $1.1M

DULUTH, Minn. – Duluth Mayor Roger Reinert is concerned, but not surprised, more Local Government Aid (LGA) could be cut from the city.

On Wednesday, Reinert said the Minnesota Legislature’s Senate Committee on Taxes released its omnibus tax bill, which includes a 3.1 percent cut to Duluth’s LGA, or $1.1 million out of the city’s general fund budgets.

Mayor Reinert canceled his Thursday schedule to travel to the State Capitol to address the proposed LGA cuts.

Reinert released the following statement Wednesday:

“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.”