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September 23, i980 <br /> <br />STATE OF MINNESOTA <br /> <br /> DEPARTMENT OF REVENUE <br />CENTENNIAL OFFICE BUILDIN(~ <br />SAINT PAUL~ MINNESOTA 55145 <br />PHONE,. <br /> <br />TO: CITY ADMINISTRATORS, FINANCE OFFICERS OR CLERKS <br /> <br />The amount of your March 15, 1981 local government aid payment is being <br />reduced. <br /> <br />The local government aid payment you were scheduled to receiVe this <br />November 15 will be delayed. Also,-a portion of the state-paid homestead <br />credit amount you were scheduled to receive November 15 will be delayed. <br /> <br />All other aid payments you receive from the Department of Revenue will <br />be made on November 15 as scheduled. <br /> <br />As you know, the state constitution requires that the state's budget be <br />balanced at the end of each biennium. But, under present conditions, it <br />is anticipated that there will be a deficit in'the state's budget of <br />approximately $195 million at the end of the current biennium (June 30, <br />1981 ). <br /> <br />In one form or' another, three-fourths of the state's budget is turned <br />over to local units of government. Although the budgets of state agencies <br />are also being cut at this time, since less than a quarter of the state's <br />budget goes to fund state agencies, we cannot reasonably expect to make <br />up a deficit of $195 million by agency budget cuts. <br /> <br />In order to avoid this forecasted deficit, it will be necessary to reduce <br />the amount of the local government aid payments made by the state to its <br />townships, cities and counties. <br /> <br />The total amount of the reduction in local government aid ~ormula payments <br />to townships, cities and counties will be $20.8 million. The subtraction <br />of the full $20.8 million from the total previously scheduled to be paid <br />will be made all at one time -- all from the payments scheduled for March <br />15, 1981. <br /> <br />The specific amount that will be subtracted from the March 15 local govern- <br />ment aid payment to you is shown tn the second column of the enclosed table. <br />The amount of the local government aid payment which you will receive instead <br />on March 15 is shown in the third column. <br /> <br />-over- <br /> <br />AN EQUAL OPPORTUNITY EMPLOYER <br /> <br /> <br />