Cut in Local Government Aid?
Here’s what happens in Remer.
Today Remer, like many
While it may seem impossible that a small town can operate off of less than $15,000, Remer is just able to cover basic services with the money they are able to collect from local taxpayers. The infusion of LGA capital into the Remer budget gives this small town the ability to put money aside for capital improvements in the future, a vital part to them remaining a sustainable town.
Remer is not alone in suffering from a lack of tax capacity and dwindling LGA. According to the MN 2020 researchers’ poll of Minnesotan mayors, greater
In 2003, the State Auditor conducted a study of municipal expenditures in relationship to state aid. The study found that the more money a municipality is given per capita in state aid, the higher their per capital expenditures tend to be. The study asserts that cities with more non-taxpayer revenue coming in feel freer to spend their money on essential and non-essential services, taking advantage of the state’s grant. While it may be true that some places take advantage of the state’s money, places like Remer are barely surviving off of it. Can a city with a $20,000 budget really overspend its state grant money by funding road repair and salaries for their staff? Suggesting this undermines the difficult work done daily by small city leaders to try and keep their communities alive.