Laserfiche WebLink
league of minnesota cities <br /> <br />August 29, 1980 <br /> <br />TO: All City Mayors, Manager% Administrators and Clerks <br /> <br />FROM: Donald A. Slater, Executive Director <br /> <br />RE: Cuts in State Aid <br /> <br /> gue staff members met with Commissioner Clyde Allen and other state staff with respect <br />to implementation of Governor Quie's proposed cut in state aid payments to cities earlier <br />this week. <br /> <br />Several major points of discussion emerged. These include: <br /> <br />1. The timing of any cut in state aid payments. <br />2o The issue of a revised or reduced certification in the 1981 state aid payment. <br />3. The state government's November, 1980 cash flow problems. <br />4~ The potential for cuts in other city aids from state agencies. <br /> <br />The situation, described in previous Action Alerts, still prevails. The Governor pro-. <br />poses an 8.3% cut in State aid payments to cities and is moving to implement his decision. <br />Legislative hearings are under way by a number of conlnittees of the Legislature .but the <br />Governor, in spite of contrary advice from members of his party, notably Senators Ashbach <br />and Pillsbury, will not involve the Legislature in this decision; in other words, no <br />special session and no consideration of the problem by the Legislature in January. <br /> <br />i Timing <br />The League Board has asked that any cut in aid payments fall totally on the March, 1981 <br />payment.with no reduction at all in the September and November payments. Commissioner Allen <br />indicated that the state is favorably disposed to this request and will probably go with it. <br /> <br />Other alternatives include a 1/3 proportionate cut in the three remaining payments. Max- <br />imum flexibility occurs if the entire cut occurs in the March 15, 1981 payment. Those <br />cities which prefer to spread the cut over the latter part of 1980 as well as early 1981. <br />could adjust their 1980 budgets to do this in anticipation of the large cut in March of 1981. <br /> <br />If the entire cut does fall on the March, 1981 aid payment, that payment would be reduced <br />by 30.753%. Note: That would be the only reduction required of cities to deal with the <br />state's projected $195 million shortfall in revenues to its general fund. <br /> <br />2. 1981 Aid Payment Certification <br /> Commissioner Allen has already issued a 198i state aid payment certification. The issue <br /> is, should he revise the amount he has informed cities they will receive by the proposed <br /> (OVER) <br />300 hanover building, 480 cedar street, saint paul, minnesota 55101 (812] 222-2861 <br /> <br /> <br />