HF 754

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government aid; changing city
formula aid; amending Minnesota Statutes 2004,
sections 477A.013, subdivision 8; 477A.03, subdivision
2a.

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

Section 1.

Minnesota Statutes 2004, section 477A.013,
subdivision 8, is amended to read:

Subd. 8.

City formula aid.

In calendar year 2004 and
subsequent years, the formula aid for a city is equal to the
need increase percentage multiplied by the difference between
(1) the city's revenue need multiplied by its population, and
(2) the deleted text begin sum of the deleted text end city's net tax capacity multiplied by the tax
effort rate deleted text begin , and the taconite aids under sections 298.28 and
298.282, multiplied by the following percentages:
deleted text end

deleted text begin (i) zero percent for aids payable in 2004;
deleted text end

deleted text begin (ii) 25 percent for aids payable in 2005;
deleted text end

deleted text begin (iii) 50 percent for aids payable in 2006;
deleted text end

deleted text begin (iv) 75 percent for aids payable in 2007; and
deleted text end

deleted text begin (v) 100 percent for aids payable in 2008 and thereafter deleted text end .

No city may have a formula aid amount less than zero. The need
increase percentage must be the same for all cities.

The applicable need increase percentage must be calculated
by the Department of Revenue so that the total of the aid under
subdivision 9 equals the total amount available for aid under
section 477A.03 after the subtraction under section 477A.014,
subdivisions 4 and 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
aids payable in 2005 and thereafter. For aids payable in 2005
only, the inclusion of the taconite aids in the formula used for
calculating the aid certifications shall be treated as an error
in the factors used to calculate a taxing authority's aid amount
and shall be corrected as provided for in section 477A.014,
subdivision 3, with the money needed for the additional aid
coming from the general fund.
new text end

Sec. 2.

Minnesota Statutes 2004, section 477A.03,
subdivision 2a, is amended to read:

Subd. 2a.

Cities.

For aids payable in 2004, the total
aids paid under section 477A.013, subdivision 9, are limited to
$429,000,000. For aids payable in 2005 deleted text begin and thereafter deleted text end , the
total aids paid under section 477A.013, subdivision 9, are
increased to $437,052,000. new text begin For aids payable in 2006, the total
aids paid under section 477A.013, subdivision 9, are increased
to $441,393,069. For aids payable in 2007, the total aids paid
under section 477A.013, subdivision 9, are increased to
$443,563,603. For aids payable in 2008 and thereafter, the
total aids paid under section 477A.013, subdivision 9, are
increased to $445,734,137.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
aids payable in 2006 and thereafter.
new text end

Sec. 3. new text begin TRANSFER.
new text end

new text begin $2,170,538 is transferred from the budget reserve in the
general fund under Minnesota Statutes, section 16A.152,
subdivision 1a, to the general fund in fiscal year 2006.
$4,341,069 is transferred from the budget reserve in the general
fund under Minnesota Statutes, section 16A.152, subdivision 1a,
to the general fund in fiscal year 2007.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end