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State budget spares Minneapolis' local government aid but ends proposed cannabis revenue for cities
Summary
City officials reported that the 2025 Minnesota legislative session left Local Government Aid intact but repealed the local cannabis aid account and raised the cannabis sales tax, affecting small projected revenues for Minneapolis.
Director Topinka said Minneapolis avoided cuts to Local Government Aid but lost a projected local cannabis revenue stream.
Director Topinka, Director of the Intergovernmental Relations Department, told the Intergovernmental Relations Committee on June 24 that the final state tax bill did not cut Local Government Aid (LGA) or county program aid, outcomes city staff had been tracking closely. She said the Legislature repealed the local cannabis aid account and raised the state cannabis sales tax from 10% to 15%, and noted the city had not yet received cannabis aid and had projected about…
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