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Federal Aid Trends. Between 1978 and 1986, federal aid to Minnesota cities <br />dropped 48 percent. In 1978, federal aid represented over 15 percent of total <br />r^ -sues for Minnesota cities, but by 1986 that share had been cut almost in half, <br />dropping to 8 percent. Whereas federal aid in 1978 contributed $3 for every $4 raised <br />in property taxes by Minnesota cities, by 1986 federal aid provided only $1.15 for <br />every $4 raised in city property taxes. <br />State Aid Trends. As federal assistance to cities has plummeted, the state has <br />tried to fill the resulting revenue gap through the local government aid program and <br />other property tax relief programs. Yet the state's fiscal problems, revenue volatility <br />and changing budget priorities have prevented this. <br />Local government aid (LGA) represents the largest portion of state aid to cities, <br />providing over half of such funding. The LGA program is funder! through an annual <br />appropriation and therefore fluctuates from year to year depending upon the state's <br />fiscal situation and other competing budget priorities. For example, large cuts in LGA <br />occurred it 1982-83 as a result of the state's budget crisis. For 1988, LGA has been <br />frozen at its 1987 level. After ad)using for inflation, funding for LGA in +988 stood at <br />a level 7 percent below what it was in 1979. (See Chart 3 below and Table <br />Appendix.) <br />230 <br />1 <br />ar <br />CHART lA <br />OCAL OOVERNNENT 'r., h�-"VED BY CITIES <br />V CONSTANT I'76 O. LI S <br />1979 as <br />1979 19M I991 1982 INl IMA 1995 1986 1901 19418 <br />• Srr TABLE 1 IN MVENOIB MN DATA. <br />WWI: a NBVENUr DER. ror LGA AHNDVKTS; U.N. DIM. Of L'OBRAT INNS <br />STATE A LOCAL INEL ICIT PRICI DrrLATON. <br />A <br />