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_ league <br /> August 29, 1980 <br /> <br />of <br /> <br />minnesota <br /> <br />cities <br /> <br />TO: <br /> <br />FROM: <br /> <br />RE: <br /> <br /> City Officials <br /> <br /> Pete Tritz <br /> <br />-STATUS OF REVENUE SHARING RE-ENACTMENT <br /> <br />As you know, the current revenue sharing law expires as of September 30 of this year. <br />The bill re-enacting revenue sharing has not yet been passed by Congress. It <br />currently appears that the earliest date by which final action can be expected is <br />the first week of October. <br /> <br />The revenue sharing re-enactment bill, H.R. 7112, has been reported out of com- <br />mittee, and is currently on the floor of the House. Major features of the bill as <br />it currently stands are as follows: <br /> <br />l) The bill would extend the program for three years, with annual funding <br /> of $4.6 billion. (This is the same level of annual funding which has <br /> been in effect since 1976.) <br /> <br />2) State governments are eliminated from revenue sharing. <br /> <br />3) The allocation formula is amended to reduce funds to jurisdictions <br /> whose per capita tax collections exceed 250% of the state average~ <br /> <br />4) <br /> <br />Annual use reports are eliminated, but jurisdictions receiving <br />allocations of $25,000 or more would be required to submit an audit <br />every two years, covering both years. <br /> <br />5) <br /> <br />One billion dollars ($1,000,000,000) is authorized for counter- <br />cyclical anti-recessionary payments. These funds would be available <br />after two successive quarters of decline in national real wages and <br />salaries and the gross national product. The funds would be distri- <br />buted to local governments in counties which suffer a decline in real <br />wages and salaries, and would be allocated to governments within the <br />county according to the revenue sharing allocation formula. <br /> <br />NLC's lobbyists feel that it is unlikely that the counter-cyclical funding provisions <br />will actually be passed. They do consider it possible that the House may include a <br />moderate increase (perhaps $500 million) in general revenue sharing funding. <br /> <br />It is important that local officials continue to contact Minnesota's Senators a~d <br />Representatives to urge them to support re-enactment of revenue sharing. <br /> <br />PT/cr <br /> <br />cedar street, saint paul, minnesota 55101 <br /> <br /> <br />