Laserfiche WebLink
.~ ~ge 2 <br /> <br />League Survey Concerning Cities' Ability to Defer November 15 Local <br />Government Aid Paymen~ <br /> <br />The Commissioner of Revenue will receive a list of cities which stated on the survey that <br />deferral would cause severe cash flow problems. Commissioner Allen said these cities <br />will be contacted by the Revenue Department. <br /> <br />It is expected that before a special exception to the payment delay would be considered, <br />the Revenue Department will ask for a written statement detailing the basis for the <br />exception. Even then, there appears to be doubt that special exceptions will be made. <br /> <br />Re-certification of 1981 Local Government Aids <br /> <br />The Revenue Department will issue a letter this week re-certifying the 1981 local <br />government aids amount to reflect the 30.755% reduction in the March 15, 1981 payment. <br />(This reduction reflects the 8.3% cut in the state's current fiscal year.) This action <br />will allow cities to choose to increase their levy to makeup for the loss in state <br />aid. A further effect of this action is to tlose the issue of the 1981 state aid <br />amount to any further legislative action. <br /> <br />Prognosis for the Future <br /> <br />Clyde Allen expressed confidence that:the July, September and November 1981 aid payments <br />will be made as.originally planned. However, if the currently anticipated budget deficit <br />of $195 million turns out to be'greater, he left open the possibility that further cuts <br />to local governments might have to be made. <br /> <br />in State Programs Affecting Local Governments <br /> <br />The Governor's office intends to. complete a listing of state program cuts by the end of <br />this week, indicating'where cuts may be "passed through" to. local governments. We will <br />endeavor to keep members informed concerning any cuts of this sort. (See enclosed <br />summary of survey results.) <br /> <br />kgj <br /> <br /> <br />