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House Tax Committee hears details on local-aid programs: LGA, township aid and county program aid
Summary
House Research explained local aid programs: city Local Government Aid (LGA) of about $644 million, township aid of $10 million, and County Program Aid (CPA) of about $342 million; presenters described distribution formulas, recent increases and that statutory appropriations do not impose spending restrictions.
Jared Swanson, legislative analyst, House Research, briefed the House Tax Committee on state aid programs that supplement property taxes to local governments.
Swanson said the largest general-purpose city aid program is Local Government Aid (LGA), which paid about $644 million annually under a needs‑based formula. For aid payable in 2025, 855 cities were eligible for LGA; 106 of those cities receive $0 under the formula, meaning about 750 cities will actually receive aid in 2025. The formula determines “need” by city size, housing stock age and other…
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