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HF 773

as introduced - 90th Legislature (2017 - 2018) Posted on 02/02/2017 01:26pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to local government aid; amending the formula and providing adjustments
in 2017 aid payments to certain cities; amending Minnesota Statutes 2016, section
477A.013, subdivisions 8, 9.

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

Section 1.

Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:


Subd. 8.

City formula aid.

(a) For aids payable in deleted text begin 2015deleted text end new text begin 2018new text end and thereafter, the formula
aid for a city is equal to deleted text begin the sum of (1) its formula aid in the previous year and (2)deleted text end the product
of (i) the difference between its unmet need and its deleted text begin formuladeleted text end new text begin certifiednew text end aid in the previous
yearnew text begin before any aid adjustment under subdivision 13new text end , and (ii) the aid gap percentage.

(b) deleted text begin For aids payable in 2015 and thereafter, if a city's certified aid from the previous
year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
its formula aid is adjusted to equal its unmet need.
deleted text end

deleted text begin (c) No city may have a formula aid amount less than zero. The aid gap percentage must
be the same for all cities subject to paragraph (a).
deleted text end

deleted text begin (d)deleted text end The applicable aid gap 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. new text begin The aid gap percentage must be the same for all cities subject to paragraph
(a).
new text end Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be
the most recently available data as of January 1 in the year in which the aid is calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2017
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:


Subd. 9.

City aid distribution.

(a) In calendar year deleted text begin 2014deleted text end new text begin 2018 new text end and thereafter, deleted text begin each citydeleted text end
new text begin if a city's certified aid before any aid adjustment under subdivision 13 for the previous year
is less than its current unmet need, the city
new text end shall receive an aid distribution equal to the sum
of (1) new text begin its certified aid in the previous year before any aid adjustment under subdivision 13,
(2)
new text end the city formula aid under subdivision 8, and deleted text begin (2)deleted text end new text begin (3)new text end its aid adjustment under subdivision
13.

(b) For aids payable in deleted text begin 2015deleted text end new text begin 2018 new text end and thereafter, new text begin if a city's certified aid before any aid
adjustment under subdivision 13 for the previous year is equal to or greater than its current
unmet need,
new text end the total aid for a city deleted text begin must not be less thandeleted text end new text begin is equal to the greater of (1) its
unmet need plus any aid adjustment under subdivision 13, or (2)
new text end the amount it was certified
to receive in the previous year minus the lesser of $10 multiplied by its population, or five
percent of its net levy in the year prior to the aid distribution.new text begin No city may have a total aid
amount less than zero.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2018
and thereafter.
new text end

Sec. 3. new text begin ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN
2017.
new text end

new text begin (a) The amount of aid payable in 2017 to a city shall be increased to equal the amount
of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for aids payable
in 2016 if the following conditions are met:
new text end

new text begin (1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
payable in 2017, is less than its certified aid for aids payable in 2016; and
new text end

new text begin (2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011,
subdivision 34, for aids payable in 2017.
new text end

new text begin (b) Any adjustment under this section shall be treated as an aid correction under
Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this
section shall be used as an affected city's 2017 certified aid amount when calculating its
formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable in
2018.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar years 2017
and 2018.
new text end