Local Government Aid

The state plays an important role in our budget.

What is LGA?

Every city in Minnesota receives Local Government Aid (LGA) from the state. LGA is an annual investment intended to pay for essential services and reduce property taxes.

As the state's largest city, we receive the largest distribution of LGA funds. In 2023, that amounts to $74,542,064.

$65.5 million of that goes to the City's General Fund. The rest supports the Minneapolis Park Board and the Municipal Building Commission. 

Our city gives back to the state

As of 2021, we generate 3.5 times more in tax revenue to the state than we receive in state aid. This revenue comes from sales tax, income tax, and property tax.  

For more detail, see the 2021 report compiled by local research firm MacCallum Ross for the Minneapolis Regional Chamber.

Minneapolis skyline over the Mississippi River

Local Government Aid

Read more about Minnesota's Local Government Aid (LGA) program at the Department of Revenue website.

Contact us

Finance & Property Services




City Hall
350 S. Fifth St., Room 325M
Minneapolis, MN 55415