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Wow <br />Special Report of VRT & CO. <br />Page 12 <br />LOCAL GOVERNMENT AID <br />Local government aid is the primary non -tax levy general - purpose aid received by <br />most Minnesota cities from the State. The State budget amounts are presented on a State <br />fiscal year basis. These amounts include the effects of budget "shifts" and therefore <br />can be misleading. Actual local government aid (on a calendar year basis) has been /will <br />be as follows: <br />Calendar Year <br />1979 <br />1980 <br />1981: <br />Proposed (1/81) <br />Actual <br />1982: <br />Proposed (1/81) <br />Actual <br />1983 <br />1984 (Proposed) <br />Amount <br />(In $1,000's) <br />225,054 <br />245,566 <br />270, 520 <br />249,716 <br />270,520 <br />235,077 <br />270,394 <br />273, 725 <br />% Change <br />13.78% <br />9.11 <br />10.17 <br />1.69 <br />(5.86) <br />1.23 <br />As shown above, the 1983 and 1984 local government aid is substantially unchanged <br />from the originally proposed 1981 level. Effectively, local government lost $56,247,000 <br />in 1981 and 1982 to help "balance" the State budget. Cities have received a nominal <br />increase in 1984 (from 1981 proposed levels) now that the State budget situation has <br />been apparently resolved. The State has, however, "allowed" local government to <br />increase the local property tax to compensate for this reduced and /or unchanged level of <br />State aid. <br />A further analysis of local government aid by Cities, Counties and Townships sheds <br />additional light on the current effects of the State budget situation. State -wide Local <br />Government Aid data may lead one to the conclusion that these aids have been restored to <br />_ 1981 levels for all local jurisdictions. This conclusion is erroneous. An analysis of <br />local government aid by type of jurisdiction presents another picture. <br />