Agenda - Council - 09/23/1980 - Special

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