Agenda - Council - 02/24/1981 - Laserfiche WebLink

Home

-2- STATE AID TO LOCAL GOVERNMENTS You will also be interested in knowing that I am recommendin~ tax relief and aid to local governments of $2.37 billion for the next biennium. This biennium estimated aid to local governments is just over $2.1 billion. In addition, my budget recommendations include $1.095 billion in total aid to local units for social services, which is an increase of nearly $200 million over the 1980-81 biennium social service aid of $905 million. Aid to local government will increase over $59 million in the next biennium from $482 million in the 1979-81 biennium to $541 million in the 1981-83 biennium. (For specific aid amounts you may want to refer to the enclosed charts and tables compiled by the Minnesota Department of Finance.) To provide a balanced budget I have proposed legislative changes to several of the current payment schedules for State aids. The March 15, 1981 payment would be made as scheduled. The balance for calendar year 1981 would be paid in six equal install- ments, July through December. Beginning in 1982 the full amount due in any calendar year would be paid in six equal installments July through December. This continued level of State aid to local units of government should enable you to continue your services while still holding the line on property 'taxes. WELFARE Welfare received an 18.5 percent increase in medical assistance over the appropriated level for the current biennium in my budget recommendations. This increase is con- sistent with the general 18.5 percent increase in the general budget and the welfare dollars are divided in the following manner: --An increase of lO.1 percent in fiscal year 1982 for income maintenance programs and a 7.4 percent increase for fiscal year 1983. --An increase of 8 percent in fiscal year 1982 for medical assistance payments and continued funding of medical assistance programs at fiscal year 1982 level in fiscal year 1983. I have also proposed: --Legislation be adopted to amend existing law governing eligibility and entitlement. This will have the effect of reducing the costs for counties as well as for State government. --Creation of a task force representing taxpayers, the Legislature, counties, providers of health care services, recipients, federal agencies and other State agencies to conduct a thorough study of existing programs and prepare a set of recommendations for submission to the 1982 Legislature. The task force will explore alternatives to the existing means of providing health services within my budget. --On top of that I have provided $10 million for the Legislative Advisory Commission (LAC), should General Assistance Medical Care costs exceed the allocated amount.