SF 2854

as introduced - 89th Legislature (2015 - 2016) Posted on 03/18/2016 10:28am

A bill for an act
relating to local government aid; providing a base year formula aid for newly
incorporated cities; amending Minnesota Statutes 2015 Supplement, section
477A.013, subdivision 8.

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

Section 1.

Minnesota Statutes 2015 Supplement, section 477A.013, subdivision 8,
is amended to read:

Subd. 8.

City formula aid.

(a) For aids payable in 2015 and thereafter, the formula
aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the
product of (i) the difference between its unmet need and its formula aid in the previous
year, and (ii) the aid gap percentage.

(b) 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.

(c) No city may have a formula aid amount less than zero. new text begin In the first aid payable
year that a newly incorporated city qualifies for aid under this subdivision, the city's
formula aid in the previous year shall be deemed to be equal to $10 multiplied by its
population. new text end The aid gap percentage must be the same for all cities subject to paragraph (a).

(d) 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. 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 2017 and thereafter.
new text end