MPR News reporter Jennifer Vogel writes:
Just as the Legislature is about to begin a special session to settle the state's budget, the revenue department has issued a release stating that Local Government Aid checks -- scheduled to be issued tomorrow -- will be delayed until at least July 27.
Perhaps more unsettling for some cities, the release suggests that the payments "will be revised to reflect the new 2011 levels." The LGA payment amounts that will be approved by the Legislature and governor are unknown at this point.
MPR News reporter Laura Yuen adds:
Gary Carlson of the League of Minnesota Cities says the department apparently needs time to compute the new amounts based on the pending passage of a tax bill as part of a state budget deal.
"We were wondering over the last several days if the delay in the special session was going to create a problem for the administration of LGA, and sure enough, now we get the official word that the tax bill will contain language that will delay by one week the requirement for the payment of LGA."
The League is anticipating that the amounts will reflect those included in a GOP bill vetoed by Governor Dayton earlier this year. That would mean most cities would receive less than they were promised for 2011, and likely the same as they received in 2010.