 From time-to-time you might hear Saint Paul elected officials grumbling about Local Government Aid (I prefer to call it Allocation vs Aid, but I digress). This crucial, state-prescribed funding was cut drastically under the leadership of Governor Pawlenty, and Saint Paul’s allocation has never been restored to a level even close to what the funding formula dictates it should be. This year, the Legislature is in a position to make some meaningful changes to the funding formula and to make major increases to Saint Paul’s portion of these funds. Here’s a little more about LGA.
Why is Local Government Aid important to Saint Paul?
Saint Paul’s two largest general fund revenue sources are property taxes and Local Government Allocation (LGA). Unlike sales tax and income tax –the bulk of the state budget – property taxes and LGA do not automatically grow with the economy. Saint Paul’s costs do grow, however. Inflationary pressures on salaries, health care costs, utilities, and capital repairs drive the City’s costs up each year. For example, salary and benefit costs in the police and fire departments alone are projected to grow by $7.8 million in 2023. This creates a gap between the city’s costs to pay for basic services and the revenues Saint Paul collects. Stable LGA funding helps to restrain city property taxes.
Where does the money for LGA come from?
Local government aid is funded through the state sales tax and income tax. As a major economic engine of the state, Saint Paul is a significant contributor to Minnesota state general fund revenues: For example, purchases made in Saint Paul contribute about $302 million to state sales tax collections and employees working in Saint Paul contribute about $550 million in state income tax revenue. For the Minnesota state budget to perform well, Saint Paul and other core cities need to perform well.
Saint Paul’s LGA under current state law
As it stands, in 2023, Saint Paul will receive $72.8 million in LGA. In 2002, Saint Paul was allocated $73.5 million in LGA. Using the State’s own funding formula, Saint Paul’s unmet need for 2023 is $100 million. This leaves a funding gap of $27.4 million. Saint Paul has the largest unmet need of any city in the state and has the biggest gap between unmet need and LGA received. If LGA had continued to be indexed to inflation, Saint Paul would receive $137.4 million in LGA, or $64.6 million more than what Saint Paul will receive in 2023.
 Are you between the ages of 14-21 and looking for a job this summer? Right Track application is open! Join us as a City Council intern, or intern at other amazing companies in Saint Paul. The application process is open through the month of February. Apply here or scan the QR code above:
stpaul.gov/righttrack
Did you also know that Right Track offers drop in employment assistance? They offer resume building, interview help, financial empowerment, workplace etiquette and also help find employment opportunities!
Drop-in hours are Tuesdays, Wednesdays and Thursdays from 4pm-5pm at 1022 Marion Street, St. Paul, MN 55117.
The long awaited North End Community Center!
The NECC will begin construction this year, replacing Rice Recreation Center, which is currently located within Wellstone Elementary. The new 25,000 square foot building and 6-acre outdoor space will include:
Multi-purpose community rooms, teaching kitchen, youth and teen rooms, gymnasium, dance studio, fitness room, outdoor courtyard, mulit-use artificial turf field, playground, speak Takraw/badminton courts, open green space, off street parking, accessibility improvements, underwater storm treatment and more!
Check out this very cool video:
www.stpaul.gov/NECC
 What's the saying? "If you choose not to find joy in the snow, you will have less joy in your life, but the same amount of snow." In these waning days of winter, I hope you have made it out to Battle Creek to ski and play, grabbed your camera to take pretty photos, or joined some of the fun festivities across the city. Spring is coming, and I can't wait to Lake Lap with my Ward 5 people, so do reach out if you'd like to take a stroll and talk about the City (or anything that moves you.) If it's icy, we can move our walk to North Dale or Frogtown or Arlington Rec center - the walking track is $1 per use (cheaper than a broken pelvis.) If you'd prefer, reach out by email ward5@stpaul.gov or give us a call 651-266-8650, regardless it's always nice to hear from you.
Opt for joy!
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