LGA funding still up for debate in St. Paul

One of the top legislative goals for East Grand Forks this session involves changes to local government aide.

A House committee has looked at a plan that would increase statewide appropriations by $150 million in the next fiscal year — a number that would grow annually under a new formula.
Supporters say LGA funding accounted for 4.1% of the state budget in 2002 — but just 2.1% of the current budget.

Factors in the aid calculation such as housing built between 1940 and 1970, jobs per capita, and average household size would be replaced by the percentage of the population aged 65 and over, and the percentage of the tax base classified as commercial.

East Grand Forks received some $2.23 million dollars in LGA funding in the 2023 budget. The city would pick up an additional $424,000 thousand next year under HF1377.