1991-2001 HACA data for Arden Hills and North Oaks

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• 1991 Changes to Minnesota's Property Tax System September 1991 Property Tax Aids and Aid Reductions Page 2 The second cause of reductions affecting general aid programs is the continuing realignment of service responsibilities between the counties and the state. The state assumed financial responsibility for most human services programs beginning in 1990 and is assuming the financing for portions of the district courts and public defense systems over a period of years. Ty aid in financing these new state responsibilities the amount paid to counties under the programs listed above has been reduced. For more information on the state takeover of these costs see 1991 Stale Takeover of Human Service Program Costs (House Research Department information brief, December 1990). Aid Reductions to Balance the State Budget At the beginning of the 1991 legislative session there was a state revenue shortfall of $200 million for the 1990.1991 biennium, and a further shortfall was projected based on curtlent law of$1.2 billion in the 1992-1993 biennium. To help balance the state budget, aid payments made under these general programs to local governments were cut. Laws 1991, Chapter 2 included a provision to cut payments made to local governments in July of 1991 by S50 million. This amount was to replace money that would be taken from the budget reserve fund in the: 1990- 1991 biennium to balance that budget. Laws 1991, Chapter 291 included additional cuts in aid payments made in December of 1991 and aid payments made in 1992. For each aid reduction, a dollar amount was set in law. Each local government's aid payments were then reduced by a uniform percentage of the local government's 1991 revenue base (original 1991 levy plus 1991 state aid). For example, the July 1991 aid cut of$50 million required each affected local, government to lose about 2.01% of its revenue base. If a city had a 1991 levy of$1 million and its original certified LGA for 1991 was $500,000 its revenue base would be $1.5 million. The July aid payment to the city would be reduced by 2.01% of $1.5 million, which is $30,150. The definition of items included in the revenue base is not the same for all cuts (see Table 1 below). No aid payment is reduced below zero, so no local government can lose more aid than:it was originally certified to receive, The 1991 reductions in aid payments are one-time reductions, which means that the base 1992 aid amounts are equal to the orginally certified amounts of 1991 aid before the reductions. The 1992 aid reductions are permanent which means that the base amount for 1993 aid will be 1992 aids after the 1992 reductions. Table 1 provides a summary of the provisions for each aid reduction, • 80'd LT:VT OOOZ OZ daS 60Z0-96Z-TS9:XPd Xdl Alel3dOeld