MANKATO — The Minnesota Legislature should not cut Local Government Aid to cities, according to more than two-thirds of Mankato area business owners responding to a local survey.

City leaders have traditionally been the strongest voice for LGA, which uses state tax dollars to keep property taxes lower in inner cities and rural towns in Minnesota. But 69 percent of 124 business owners responding to a survey by Greater Mankato Growth support maintaining or expanding the program and 60 percent agreed that the funding is “very important and critical to business vitality.”

That position puts those business owners at odds with the Republican-led Legislature, which is seeking to continue steep reductions in LGA put in place by then-Gov. Tim Pawlenty, also a Republican.

Democratic Gov. Mark Dayton has proposed a budget that increases income taxes on top earners in Minnesota, partly so LGA can be restored to the level prior to the most recent Pawlenty reductions.

“Without LGA my business taxes would almost double,” one local business owner wrote in the comments section of the survey. “This program makes it affordable to conduct business in Mankato. Without it, I would reduce staff and consider reducing the hours of operation.”

Others suggested LGA be increased when times are better, although they would accept a no-cut approach during the current budget crunch.

“LGA has already taken significant cuts throughout the past several years,” a respondent wrote. “This is significant for rural communities. Metro areas have significantly more avenues for revenue.”

The 31 percent of local business owners who think LGA should be reduced or eliminated also offered opinions.

“Sending our money to St. Paul so they can send it back to us, often with strings attached, is a terrible idea,” wrote one LGA opponent. “LGA forces Mankato to focus on begging and jumping through hoops rather than business.”

Greater Mankato Growth, the area’s chamber of commerce and economic development group, doesn’t take positions on legislative issues, said President and CEO Jonathan Zierdt. The decision to do surveys followed discussions with lawmakers and other government officials about whether they’d rather have official positions from the organization or a poll of the opinions of members.

“Every single one of them said we would find the second one more useful,” Zierdt said.

The surveys also attempt to provide nuance by breaking the results into different categories of businesses.

For instance, the support for LGA was strongest among businesses with 10 or fewer employees (82 percent in favor of maintaining or increasing it) and those with 100 or more (74 percent). Support of mid-size businesses ranged from 55-61 percent.

A second survey of GMG members measured support for Mankato’s request for $15 million in state bonding funds to cover half the cost of a proposed $30 million project to add a performing arts center to the Verizon Wireless Center and upgrade hockey rinks at the civic center and All Seasons Arena.

Of the 167 respondents, 57 percent support the project, 27 percent oppose it and 16 percent were undecided. The results showed declining support from businesses farther away from the city center and from Minnesota State University.

The business owners also disagreed with the respondents to The Free Press online poll, an unscientific sampling of reader opinion that showed 69 percent of respondents deemed it “irresponsible” for the city to spend $2 million in sales tax revenue to purchase the U.S. Bank building site in preparation for the civic center expansion. Of the business owners, 55 percent of respondents agreed with the City Council’s decision and 32 percent disagreed.

The GMG survey results were forwarded to city officials and to Sen. Kathy Sheran of Mankato and Reps. Kathy Brynaert of Mankato and Terry Morrow of St. Peter, who represents North Mankato, Zierdt said. The results also went to two organizations attempting to influence public policy — the Minnesota Chamber of Commerce and the Minnesota Taxpayers Association.