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figure. After 1978 in the metropolitan area, it was <br />the average of the 1970 census and the most recent <br />population estimate, if it was larger than the 1970 <br />censUS figure. <br />From Ramsey's perspective, the way the formula works <br />has kept its local aid relatively low. First, the <br />i~itial amounts of the various forms of aid that were <br />consolidated into local aid were relatively small back <br />in 1971 when the program started, since it was a small <br />and basically rural community. Second, throughout the <br />program the previous year's aid always was the minimum <br />amount that a community could receive, so eommunities <br />that started out high maintained a relatively high <br />level of local aid. <br /> Ramsey's mill rate has been relatively low compared to <br /> other communities, so that local aid factor is also not <br /> in its favor. Sinee it is a three-year average~ the <br /> mill rate would have to increase substantially over a <br /> three-year period before any benefit would be <br /> received. Furthermore, use of the mill rate alone does <br /> not totally reflect the total local governmental burden <br /> borne by the residentS, because special assessments are <br /> not included. In a community such as Ramsey, where all <br /> of its bond payments or capital improvements have been <br /> made through special assessment, the mill rate is <br /> substantially lower than if it used a general tax levy <br /> to make the payments. <br /> Finally, the use of the 1970 census figures for the <br /> population factor greatly affected Ramsey's allocation <br /> because the city grew by over 400% from 1970 to 1980, <br /> but no allowance for growing communities was provided <br /> until 1978,when the average of the current and 1970 <br /> population was used. For communities that were losing <br /> population, the 1970 eensus figure continued to be <br /> used, however. <br /> For 1980 and 1981, the local aid formula was changed. <br /> Many of the same factors remain that tend to <br /> perpetuate past trends. First, communities are assured <br /> of receiving no lessthan the previous year, plus' <br /> additional aid was distributed based on its population <br /> and its mill rate. As a result, Ramsey's relative <br /> share changed very litt.e Due to the state's financial <br /> problems, the local aid amount each community was to <br /> reeei~e in 1981 was reduced by 8.3% <br /> For 1982, the local aid amounts will be the <br /> amountscommunities should have reeeived in 1981. For <br /> 1983, the amount appropriated for local aid was <br /> increased by $23 million, which will be a 7.3% <br /> increase. The formula to allocate the funds is <br /> basically the same as in the past. However, it is <br /> <br />-4- <br /> <br /> <br />