SF 4227

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/24/2022 10:06am

A bill for an act
relating to taxation; adjusting the calculation of local government aid and county
program aid in 2023 only; increasing the annual appropriation for local government
aid; increasing the annual appropriation for county program aid; amending
Minnesota Statutes 2020, sections 477A.013, subdivision 9; 477A.03, subdivision
2a; Minnesota Statutes 2021 Supplement, section 477A.03, subdivision 2b.

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

Section 1.

Minnesota Statutes 2020, section 477A.013, subdivision 9, is amended to read:

Subd. 9.

City aid distribution.

(a) deleted text begin In calendar year 2018 and thereafter, deleted text end 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 shall receive an aid distribution equal to the sum of (1)
its certified aid in the previous year before any aid adjustment under subdivision 13, (2) the
city formula aid under subdivision 8, and (3) its aid adjustment under subdivision 13.

(b) deleted text begin For aids payable in 2020 only, no city's aid amount before any adjustment under
subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment
under subdivision 13 for that year. For aids payable in 2020 and thereafter, deleted text end 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, the total aid for a city is equal to the greater of (1) its
unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified
to receive in the previous year minus the sum of (i) any adjustment under subdivision 13
that was paid in the previous year but has expired, and (ii) the lesser of $10 multiplied by
its population, or five percent of its net levy in the year prior to the aid distribution. No city
may have a total aid amount less than $0.

new text begin (c) Notwithstanding paragraph (b), for aids payable in 2023 only, no city's aid amount
before any adjustment under subdivision 13 may be less than the sum of (1) its pay 2022
certified aid amount and (2) its pay 2022 supplemental aid amount under Laws 2021, First
Special Session chapter 14, article 7, section 5, less any aid adjustment under subdivision
13 for that 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 2023
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2020, section 477A.03, subdivision 2a, is amended to read:

Subd. 2a.

Cities.

deleted text begin For aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid
paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the
total aid paid under section 477A.013, subdivision 9, is $560,398,012. deleted text end For aids payable in
2021 and deleted text begin thereafter deleted text end new text begin 2022 new text end , the total aid payable under section 477A.013, subdivision 9, is
$564,398,012. new text begin For aids payable in 2023 and thereafter, the total aid payable under section
477A.013, subdivision 9, is $654,398,012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2023 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2021 Supplement, section 477A.03, subdivision 2b, is amended
to read:

Subd. 2b.

Counties.

(a) deleted text begin For aids payable in 2018 and 2019, the total aid payable under
section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated
as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020,
the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, 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 2021 deleted text begin through 2024 deleted text end new text begin and 2022 new text end , 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. new text begin For aids payable in 2023 and
2024, the total aid payable under section 477A.0124, subdivision 3, is $......., of which
$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section
6. new text end For aids payable in 2025 and thereafter, the total aid payable under section 477A.0124,
subdivision 3, is deleted text begin $115,795,000 deleted text end new text begin $....... 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 2018 and 2019, the total aid under section 477A.0124, subdivision
4, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124,
subdivision 4, is $143,873,444. deleted text end For aids payable in 2021 and deleted text begin thereafter deleted text end new text begin 2022 new text end , the total aid
under section 477A.0124, subdivision 4, is $145,873,444. new text begin For aids payable in 2023 and
thereafter, the total aid under section 477A.0124, subdivision 4, is $........ 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 2023 and thereafter.
new text end

Sec. 4. new text begin PAY 2023 COUNTY PROGRAM AID ADJUSTMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Pay 2023 aid amount. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.0124, subdivision 3, the commissioner of revenue must increase the county need aid
payable to a county in 2023 by the amount necessary to ensure that the total county program
aid amount certified for a county for aids payable in 2023 is not less than the total county
program aid amount certified for a county for aids payable in 2022.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the aid increases required under
this section is appropriated in fiscal year 2024 from the general fund to the commissioner
of revenue. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2023 only.
new text end