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Republican House Plan Chops Local Aid

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(credit: Jupiter Images)

(credit: Jupiter Images)

ST. PAUL, Minn. (AP) – A new plan from Republicans in the Minnesota House would cut $746 million from money the state sends to local governments, with much of it coming from Minneapolis, St. Paul, and their suburbs.

The plan would end local government aid for Twin Cities suburbs after two years.

Republicans have said cuts in local aid are needed to help close Minnesota’s budget deficit. The plan’s chances for becoming law are dim, since Gov. Mark Dayton has been a strong supporter of state aid to local governments.

In addition, the Republican plan would also cut $118.7 million from a program that gives low- and middle-income renters a tax refund to offset property taxes.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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