Strong Towns has released a report today on Minnesota's cities, local government aid and the robustness of our local finance systems.
Our latest analysis, “Minnesota’s Most Vulnerable Cities,” illustrates that many local governments are exposed to a risky dependence on state and federal funding that grows less sustainable – and less predictable – by the year. Many local governments have developed a financial structure that’s highly exposed to the risk that state and federal funding diminishes in the future. These communities rely on state and federal funds to provide services that include streets and highways, parks and open spaces, economic development and public safety.
Our level of economic growth and our system of state and federal support have until recently insulated us from this reality: Minnesota’s places need to become more productive.
Supplemental Briefing: A Brief History of Minnesota's System of Local Government Finance, 1960-2010