HF 1777

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government aids; restoring county program aids; providing
county program aid inflation adjustment; amending Minnesota Statutes 2006,
section 477A.03, subdivision 2b, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 477A.03, subdivision 2b, is amended to
read:

Subd. 2b.

Counties.

(a) For aids payable in calendar deleted text begin year 2005 and thereafter deleted text end new text begin
2008 new text end , the total aids paid to counties under section 477A.0124, subdivision 3, are limited
to deleted text begin $100,500,000 deleted text end new text begin $105,112,500. For aids payable in 2009 and thereafter, the total aids
paid under section 477A.0124, subdivision 3, are the amounts certified to be paid in the
previous year, adjusted for inflation as provided under subdivision 5 new text end . Each calendar year,
$500,000 shall be retained by the commissioner of revenue to make reimbursements
to the commissioner of finance for payments made under section 611.27. deleted text begin For calendar
year 2004, the amount shall be in addition to the payments authorized under section
477A.0124, subdivision 1. For calendar year 2005 and subsequent years, deleted text end The amount shall
be deducted from the appropriation under this paragraph. The reimbursements shall be to
defray the additional costs associated with court-ordered counsel under section 611.27.
Any retained amounts not used for reimbursement in a year shall be included in the next
distribution of county need aid that is certified to the county auditors for the purpose of
property tax reduction for the next taxes payable year.

deleted text begin (b) For aids payable in 2005, the total aids under section 477A.0124, subdivision
4, are limited to $105,000,000. deleted text end For aids payable in deleted text begin 2006 and thereafter deleted text end new text begin 2008 new text end , the total
aid under section 477A.0124, subdivision 4, is limited to deleted text begin $105,132,923 deleted text end new text begin $121,020,423.
For aids payable in 2009 and thereafter, the total aids paid under section 477A.0124,
subdivision 4, are the amounts certified to be paid in the previous year, adjusted for
inflation as provided under subdivision 5 new text end . The commissioner of finance shall bill the
commissioner of revenue for the cost of preparation of local impact notes as required by
section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner
of education shall bill the commissioner of revenue for the cost of preparation of local
impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal
year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed
under this paragraph from the appropriation under this paragraph. The amounts deducted
are appropriated to the commissioner of finance and the commissioner of education for the
preparation of local impact notes.

Sec. 2.

Minnesota Statutes 2006, section 477A.03, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin In 2009 and thereafter, the amounts paid under
subdivision 2b must each be increased by an amount equal to:
new text end

new text begin (1) the amount certified to be paid under that subdivision in the previous year,
multiplied by
new text end

new text begin (2) one plus the percentage increase in the implicit price deflator for state and
local government purchases of goods and services prepared by the Bureau of Economic
Analysis of the United States Department of Commerce for the 12-month period ending
March 31 of the previous year.
new text end