Duluth Could See State Aid Cuts

Duluth Could See Cuts to Local Government Aid

Sorry, this video is no longer available

This legislative season the GOP led House is proposing a bill that would cut local government aid to Duluth, Minneapolis and St. Paul which would save the state a combined $85 million.

Local government aid is used to make sure cities like Duluth are able to continue to provide basic needs like police, fire and roads to people who travel into town but are not contributing to the city’s property taxes.

If this bill goes through Duluth would go from getting $27 million in LGA funds to $7 million which city leaders believe will have a negative ripple effect.

“We’re looking at major layoffs, you would be looking at major levy increases, exactly what we don’t want to have happen,” said Daniel Fanning with the City of Duluth. “This burden would have to be passed onto the tax payers and nobody wants that to happen.”

City leaders tell FOX 21 Minneapolis, St Paul and Duluth are of the four largest cities in the state which is why they receive the most local government aid.

With Duluth being the largest city in the county people from surrounding areas often go there to take advantage of services not offered in their towns whether it be at Duluth hospitals, nonprofits or even universities.

Duluth city officials also tell FOX 21 they are standing in solidarity with Minneapolis and St. Paul to fight this bill.

They are optimistic the initiative will not pass because all three cities have had flat levies the last three years.