HF 1381

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

A bill for an act
relating to local government aid; providing an adjustment for inflation; amending
Minnesota Statutes 2006, section 477A.03.

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

Section 1.

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

477A.03 APPROPRIATION.

Subd. 2.

Annual appropriation.

A sum sufficient to discharge the duties imposed
by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
commissioner of revenue.

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, the
total aids paid under section 477A.013, subdivision 9, are limited to $437,052,000. For
aids payable in 2006 and thereafter 2007, the total aids paid under section 477A.013,
subdivision 9, is limited to $485,052,000. For aids payable in 2008 and thereafter, the
total aids paid under section 477A.013, subdivision 9, are the amounts certified to be paid
in the previous year, adjusted for inflation as provided under subdivision 5.

Subd. 2b.

Counties.

(a) For aids payable in calendar year 2005 and thereafter 2007,
the total aids paid to counties under section 477A.0124, subdivision 3, are limited to
$100,500,000. For aids payable in 2008 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. 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. 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, 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.

(b) For aids payable in 2005, the total aids under section 477A.0124, subdivision
4, are limited to $105,000,000. For aids payable in 2006 and thereafter 2007, the total
aid under section 477A.0124, subdivision 4, is limited to $105,132,923. For aids payable
in 2008 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. 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.

Subd. 5.

Inflation adjustment.

In 2008 and thereafter, the amount paid under
subdivisions 2a and 2b shall each be increased by an amount equal to:

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

(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.