Agenda - Council - 12/20/1983 - Laserfiche WebLink

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I I i I I I I I I I I I I I I ! ! After these three state aid factors had been calculated, the final state aid factor was selected. If the preliminary state aid factor was less than the minimum state aid factor, the minimum state aid factor became the final state aid factor. If the PSAF was greater than the maximum state aid factor, the maximum state aid factor became the final state aid factor. In all other circumstances the PSAF became the final state aid factor. The final state aid factor was used to determine what portion of the total appropriation for local government aid the city would receive. The 1979 formula was used to calculate aid for the 1980, and 1981 aid years. However, due to the state's budget crisis, the appropriation for 1981 was reduced by $20.8 million, and each city's aid was reduced on a pro rata basis. Affidavit of Richard B. Gardner (hereinafter "Gardner Affidavit"), para. 6. Although the formula was technically still in effect, for aid year 1982 the state's budget crisis prevented any increases in local government aid. Accordingly the legislature directed that cities receive their 1981 aid amounts. Act of June 6, 1981, ch. 1, art. VI, § 6, 1981 Minn. Laws 1st Spec. Sess. 2417. Even those amounts were ultimately diminished due to additional budget crisis reductions in the appropriation available for local government aid. Act of January 15, 1982, ch. 2, art. VI, § 12, 1981 Minn. Laws 3d Spec. Sess. 111. Gardner Affidavit, para. 7. For aid year 1983, the legislature again appropriated an amount sufficient to distribute aid at the level the formula would have provided in 1981, and that is the amount that is being paid. Id., para. 8. -9-