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! <br />I <br /> <br /> I <br />I <br />I <br />I <br />i <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />! <br />I <br /> <br /> In 1980, the Department of Revenue conducted a study of <br />the projected effects of the 1979 formula. Deposition of Richard B. <br />Gardner, Exhibit 1. The study concluded that the new formula would <br />not significantly correct many of the deficiencies previously noted <br />nor accomplish many of the goals advocated by its chief proponent, <br />the League of Minnesota Cities. Id. at 1-11. This report served as <br />the principal basis for plaintiffs' allegations that the formula is <br />unconstitutional. See Plaintiffs' Answers to Interrogatories. <br /> <br /> THE BASIC STRUCTURE OF THE 1983 LOCAL GOVERNMENT AID FORMULA <br /> <br /> In 1983 the legislature again amended the local government <br />aid formula. Act of June 14, 1983, ch. 342, art. 5, 1983 Minn. Laws <br />2256 (hereinafter "1983 Act"). It is this current formula to which <br />plaintiffs' consitutional challenge must now be addressed. <br />Accordingly, an understanding of its fundamental terms is necessary. <br /> <br /> Although the 1983 formula retains the general structure of <br />the 1979 formula, it also contains several important and substantial <br />changes. First, the 1983 formula no longer distinguishes cities <br />based on whether or not they are subject to levy limits. The same <br />local government aid formula now applies to all cities. Second, <br />unlike all previous formulas with their 100% grandfather guarantees, <br />under the new local government aid formula, a city's local <br />government aid may decrease from one year to the next. Third, the <br />legislature introduced an across-the-board 6% cap on a city's <br />maximum aid increase. Formerly, a city's maximum aid increase could <br />range up to 20 percent. <br /> <br />-10- <br /> <br /> <br />