Local election candidates discuss Rochester’s disparities in state funding compared to other Minnesota cities

ROCHESTER, Minn. (KTTC) – Rochester City Council President Candidate Randy Schubring and Minnesota House Representative Andy Smith (DFL) hosted a press conference Thursday morning, sharing how Rochester receives much less Local Government Aid funding (LGA) compared to Minneapolis, St. Paul, and Duluth.

According to the Minnesota Department of Revenue, LGA is a general purpose aid that can used for any lawful expenditure. It is also intended to be used for property tax relief.

Data from the Department of Revenue shows Rochester's certified LGA next year is slated to be about $2.5 million, while the number is about 14 times larger for Duluth.

"The primary sort of underlying reason is that the formula is built for a Minnesota that no longer reflects what Minnesota is now and particularly what Rochester is now," Smith said.

Schubring stated the med city has turned to property tax increases in the last two years to fill its budget. With the city of Rochester proposing a 10.35% increase next year, he said more LGA funding is needed to bring taxes down for residents.

"Rochester needs to work with our state legislative delegation and our city council to fight for our fair share of state LGA dollars," Schubring said. "The ALICE study that shows that 33% of our neighbors people in Rochester are financially stressed. These are people that are one paycheck away from poverty and they are our neighbors. They are cashiers and home healthcare aides."

"If in another world we pass this LGA bill and there's 13 million more dollars coming to the city, that 10% increase that currently is on the table and voted out in December wouldn't be that high."

Rochester Ward 5 City Council Member Shaun Palmer, who is running for council president against Schubring, stated the LGA funding has been the city's top priority for the last six years—a topic he said that the senate tax chair will not be revisiting.

"It's supposed to benefit cities that don't have the economic vitality that we have," Palmer said. "It's very difficult to make the case that we deserve it. It's not that the city of Rochester hasn't tried and we continue to try."

Schubring shared securing the LGA funding is critical to help reduce property taxes for those who are struggling financially. "My opponent said I don't think it's worth it," Schubring said. "I don't think it's worth it to fight for a fix that works for Rochester. I, on the other hand, think it is worth it."

Palmer, on the other hand, said securing more LGA funding will not be a new effort by the city council. "The senate tax chair is not in favor of doing it, and so it probably won't get done," he said. "That's a pipe dream. If the candidate wants to say that's something they're going to look into, that's something the city has had the top priority, probably the last six years."

All three of the leaders agree the topic is not a partisan issue—that everyone's commitment is needed to fight for more state funding.

KTTC also reached out to Minnesota House 25B Candidate Wes Lund, who is challenging Smith, for his comment on the topic of LGA. Regarding his opponent, he said, "Andy's always spending other people's money." Regarding Schubring, Lund added he feels it's bizarre for him to run as a nonpartisan candidate while working alongside DFL leaders.