HF 3848

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/26/2024 04:18pm

A bill for an act
relating to taxation; aids to local governments; providing for an annual inflation
and population adjustment to the appropriations for local government aid and
county program aid; amending Minnesota Statutes 2022, section 477A.03, by
adding a subdivision; Minnesota Statutes 2023 Supplement, section 477A.03,
subdivisions 2a, 2b.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 477A.03, subdivision 2a, is
amended to read:

Subd. 2a.

Cities.

deleted text begin For aids payable in 2021 through 2023, the total aid payable under
section 477A.013, subdivision 9, is $564,398,012. deleted text end For aids payable in 2024 deleted text begin and thereafter deleted text end ,
the total aid payable under section 477A.013, subdivision 9, is $644,398,012. new text begin For aids
payable in 2025 and thereafter, the total aid payable under section 477A.013, subdivision
9, equals the total aid payable under section 477A.013, subdivision 9, in the previous year,
multiplied by the inflation adjustment under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2025
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 477A.03, subdivision 2b, is amended
to read:

Subd. 2b.

Counties.

(a) deleted text begin For aids payable in 2021 through 2023, the total aid payable
under section 477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be
allocated as required under Laws 2014, chapter 150, article 4, section 6. deleted text end For aids payable
in 2024, the total aid payable under section 477A.0124, subdivision 3, is $154,197,053, of
which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4,
section 6. For aids payable in 2025 deleted text begin and thereafter deleted text end , the total aid payable under section
477A.0124, subdivision 3, is $151,197,053 new text begin , multiplied by the inflation adjustment under
subdivision 6. For aids payable in 2026 and thereafter, the total aid payable under section
477A.0124, subdivision 3, equals the total aid payable under section 477A.0124, subdivision
3, in the previous year, multiplied by the inflation adjustment under subdivision 6 new text end . On or
before the first installment date provided in section 477A.015, paragraph (a), $500,000 of
this appropriation shall be transferred each year by the commissioner of revenue to the
Board of Public Defense for the payment of services under section 611.27. Any transferred
amounts not expended or encumbered in a fiscal year shall be certified by the Board of
Public Defense to the commissioner of revenue on or before October 1 and shall be included
in the next certification of county need aid.

(b) deleted text begin For aids payable in 2021 through 2023, the total aid under section 477A.0124,
subdivision 4, is $145,873,444. deleted text end For aids payable in 2024 deleted text begin and thereafter deleted text end , the total aid under
section 477A.0124, subdivision 4, is $190,471,391. new text begin For aids payable in 2025 and thereafter,
the total aid payable under section 477A.0124, subdivision 4, equals the total aid payable
under section 477A.0124, subdivision 4, in the previous year, multiplied by the inflation
adjustment under subdivision 6. new text end The commissioner of revenue shall transfer to the Legislative
Budget Office $207,000 annually for the cost of preparation of local impact notes as required
by section 3.987, and other local government activities. The commissioner of revenue shall
transfer to the commissioner of education $7,000 annually for the cost of preparation of
local impact notes for school districts as required by section 3.987. The commissioner of
revenue shall deduct the amounts transferred under this paragraph from the appropriation
under this paragraph. The amounts transferred are appropriated to the Legislative
Coordinating Commission and the commissioner of education respectively.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2025
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2022, section 477A.03, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin (a) For purposes of this section, "inflation adjustment"
means the greater of:
new text end

new text begin (1) 1.025; or
new text end

new text begin (2) one plus the total rate of change calculated under paragraph (b), but not to exceed
1.05.
new text end

new text begin (b) In January of the year in which the aid amounts are certified, the commissioner must
calculate:
new text end

new text begin (1) the rate of change in inflation according to the implicit price deflator for government
consumption expenditures and gross investment for state and local governments 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 calendar year; plus
new text end

new text begin (2) the rate of change in total city population between the population certified for aid
payable under section 477A.013, subdivision 9, in the previous calendar year, compared to
the population certified for aid payable under section 477A.013, subdivision 9, in the current
calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2025
and thereafter.
new text end