Local Government Aid

The state plays an important role in our budget.

Our state invests in its cities

  • Every city in Minnesota receives Local Government Aid (LGA) from the state.
  • It 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. This year, that amounts to $68.8 million. 
  • Here's how we distribute it in the budget.
    • $68.1 million —  General Fund
    • $ 9.2 million  — Minneapolis Park Board
    • $ 0.2 million  — Municipal Building Commission (MBC) 

Our city gives back to the state

We generate 3.5 times more in tax revenue to the state than we receive in state aid. This number includes:

  • Sales tax
  • Income tax
  • Property tax

This is explained in a 2021 report compiled by local research firm MacCallum Ross for the Minneapolis Regional Chamber.

Minneapolis skyline over the Mississippi River

Local Government Aid

Minnesota's Local Government Aid (LGA) program helps our cities and our state.

Contact us

Finance & Property Services




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