1997 Minnesota Statutes

     477A.0132 Aid reductions to local governments. 

    Subdivision 1.    Affected local governments.  The 
 following reductions shall be made in aids paid to the following 
 local units of government: 

    (a) For aids payable in 1996, there shall be a nonpermanent 
 reduction in aids to counties, cities, towns, and special taxing 
 districts of $16,000,000, provided that Laws 1995, chapter 264, 
 article 8, section 25, subdivision 1, is enacted; otherwise the 
 reduction is $14,000,000. 

    (b) Aid reductions required under section 16A.711, 
 subdivision 5, shall be nonpermanent reductions in aids to 
 counties, cities, towns, and special taxing districts equal to 
 the difference between the aid amounts certified to be paid and 
 the amount of the appropriation to pay the aids.  

    (c) For aids payable in 1996 there shall be a permanent 
 reduction in aids to counties of $10,000,000, provided that Laws 
 1995, chapter 264, article 8, section 16, is enacted. 

    (d) For aids payable in 1997 there shall be a permanent 
 reduction in aids to county regional rail authorities and 
 counties of $6,800,000, provided that Laws 1996, chapter 471, 
 article 3, section 45, is enacted. 

    Subd. 2.    Calculation of aid reduction.  The aid 
 reduction to each local government as provided under subdivision 
 1 will be equal to the product of the reduction percentage and 
 its reduction base.  The reduction base is defined as the 
 following: 

    (a) For subdivision 1, paragraph (a), the reduction base is 
 equal to the adjusted revenue base for 1996. 

    (b) For subdivision 1, paragraph (b), the reduction base is 
 equal to the adjusted revenue base for the year in which the aid 
 payment is to be made. 

    (c) For subdivision 1, paragraph (c), the reduction base is a 
 county's aid in calendar year 1996 under section 477A.0121.  

    (d) For subdivision 1, paragraph (d), the reduction base is a 
 county's aid in calendar year 1997 under section 477A.0121. 

    Reductions under subdivisions 1, paragraph (a), and 2, 
 paragraph (a), to any individual county, city, or town are 
 limited to an amount equal to 0.45 percent of the unit's 1994 
 adjusted net tax capacity.  For this subdivision, "adjusted net 
 tax capacity" means the political subdivision's net tax capacity 
 calculated using the method for calculating city net tax 
 capacity under section 477A.011, subdivision 20. 

    Subd. 3.    Order of aid reductions.  (a) The aid 
 reduction to a local government calculated under subdivisions 1, 
 paragraphs (a) and (c), and 2, paragraphs (a) and (c), is 
 applied to homestead and agricultural credit aid under section 
 273.1398 only. 

    (b) The aid reduction to a local government calculated 
 under subdivisions 1, paragraph (d), and 2, paragraph (d), is 
 applied to homestead and agricultural credit aid paid under 
 section 273.1398 only; the amount is first subtracted from the 
 amount paid to a county's regional rail authority, if there is 
 one, and then from the county's general homestead and 
 agricultural credit aid. 

    (c) The aid reduction to a local government as calculated 
 under other paragraphs of subdivisions 1 and 2, is first applied 
 to its local government aid under sections 477A.012 and 477A.013 
 excluding aid under section 477A.013, subdivision 5; then, if 
 necessary, to its equalization aid under section 477A.013, 
 subdivision 5; then if necessary, to its homestead and 
 agricultural credit aid under section 273.1398, subdivision 2; 
 and then, if necessary, to its disparity reduction aid under 
 section 273.1398, subdivision 3.  No aid payment may be less 
 than $0.  Aid reductions under this section in any given year 
 shall be divided equally between the July and December aid 
 payments unless specified otherwise. 

    HIST: 1991 c 291 art 3 s 11; 1992 c 511 art 1 s 18; 1994 c 416 
 art 1 s 60; 1994 c 587 art 3 s 21; 1995 c 264 art 8 s 15,17; 
 1996 c 471 art 3 s 46