Agenda - Council - 07/28/1981 - Laserfiche WebLink

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($1 for aid year 1981). An average equalized mill rate of over 10 but less than or equal to 20 mills qualifies for the next level of minimum per capita aid increase ($4 for aid year 1981). An average equalized mill rate in excess of 20 mills qualifies for the highest per capita aid increase ($6 for aid year 1981). This is somewhat similar to the old formula which apportioned aid according to a city or town's aid distribution factor, which was its average equalized mill rate multipled times its population. Under the old formula, the higher the city or town's average equalized mill rate and the higher its population, the greater its share of the Local Government Aid distributed to the entire county. The minimum state aid factor tends to perpetuate this relationship. 3) Since the relative distribution of Local Government Aid under the new formula compared to the old formula changes very little, several of the "inequities" of the old formula are perpetuated under the new formula. Disproportionate allocations of Local Government Aid to cities outside the metro area compared to similar cities within the metro area (defined as the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington), resulting from the county by county distribution of Local Government Aid under the old formula, are locked into the distributions under the new formula because of the "grandfather" provision. An inadequate relationship between "fiscal capacity" and state aid under the old formula, whereby tax base -poor communities were shortchanged, is perpetuated under the new formula since so few cities or towns receive their Local Government Aid increases on the basis of their preliminary state aid factors. 3