Minnesota Chamber of Commerce proposes elimination of LGA.

While the information thus far is short on details the Minnesota Chamber of Commerce proposal would would increase Rochester property taxes by approximately 12% based on the 2011 budget and increase the enormous gap in how much tax revenue Rochester sends to St. Paul vs. how much we get back.

Hopefully this proposal will be dead on arrival.  Governor Mark Dayton is a strong supporter of LGA and Rochester has representatives in both parties in the legislature.  This does lead to the question as to whether our local chamber will support the Minnesota Chamber or our local taxpayers.


  1. Lets face it, LGA is a mess. It is not fair, the apportionment among recipients is not based on need, or contribution. If is was a take from the rich and give to the poor that is one rational choice, if it was to return a portion of the city/county contribution to the state coffers that is another, but today is is old and outdated. If it is to continue than it needs to be rewritten with some basis for the distribution. For example why does Duluth get 5 times and St Cloud double the amount that rochester gets? But we need to remember that free money is not subject to the same limits that are imposed on dollars that the local government actually has to go to the taxpayers to defend, so don’t look to quickly for it to be available. It is still our tax money.

  2. I would concede that the current formula is far from perfect, but the design is to equalize tax burden in poor communities. The Chamber proposal is far less fair to Rochester than the status quo.

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