Duluth could lose $1.1 million from its general fund budgets following a 3.1% reduction in Local Government Aid (LGA) under the omnibus tax bill released by the Senate Committee on Taxes. The proposed cut has prompted Mayor Roger J. Reinert to warn of serious consequences for city services.
“These proposed cuts would take $1.1 million dollars out of the city general fund budgets,” Reinert said in a statement posted on Duluth’s official website. He noted that LGA is the “single largest source of revenue” for the city.
With nearly one-third of Duluth’s revenue dependent on LGA, the proposed cut presents a significant challenge to city operations. “Any cuts to LGA will translate directly to a reduction in the delivery of City of Duluth services,” Reinert added. He also stressed the need to expand Duluth’s local tax base to make the city “more financially self-sustaining.”
In response to the proposal, Reinert has cleared his Thursday schedule to travel to the State Capitol and advocate against the cuts.
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