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- - ~ <br />T~cx Aids &Credits <br />• Reverse referendums are proposed so that local voters may not only hold down spending growth, <br />but may even decrease spending. Activities funded by local levies must demonstrate continuing <br />value to the public in order for their continued support. <br />City aids and credits are reduced by $435 million for the biennium. This represents a 28.8°~ <br />reduction in state aids, or a 6.2% reduction in total city revenues. <br />~ For the first year, changes are capped at 5% of total revenues for cities with more than 1,000 <br />people. Smaller reductions of 3.5% are taken in aids to small cities and those that have <br />already restrained spending growth. <br />~ For the second year, changes are capped at 9.5°~ for most cities, with smaller cities and <br />those with low spending growth capped at 8%. <br />County aids and credits are reduced by $189 million for the biennium. This represents a 20.1% <br />reduction in state aid, or a 2.4% reduction in total county revenues. <br />~ For the first year, changes are capped at 3.2% of total revenues. Smaller reductions of 1.5°~ <br />are taken in aids to those counties that have already restrained spending growth. <br />~ For the second year, reductions are capped at 6.0% for counties, with low spending growth <br />counties capped at 2.5%. <br />• Overall reductions to county aids are smaller than for cities due in part to their role in delivering <br />state services. Counties are also impacted by state budget reductions in state health, human <br />services, and corrections spending. As a result, while direct aid losses are lower, the overall <br />impact between counties and cities is relatively balanced. <br />• <br />C~ <br />Governor's 2004-05 Budget 15 <br />