1.1 	A bill for an act
1.2 	relating to local government; modifying the regional library system maintenance 
1.3 	of effort formula; amending Minnesota Statutes 2010, section 134.34, subdivision 
1.4 	4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 134.34, subdivision 4, is amended to read:
1.7 		Subd. 4.Limitation. (a) For calendar year 2010 and later, a regional library 
1.8 	basic system support grant shall not be made to a regional public library system for a 
1.9 	participating city or county which decreases the dollar amount provided for support for 
1.10 	operating purposes of public library service below the amount provided by it for the 
1.11 	second, or third preceding year, whichever is less. For purposes of this subdivision and 
1.12 	subdivision 1, any funds provided under section 473.757, subdivision 2, for extending 
1.13 	library hours of operation shall not be considered amounts provided by a city or county for 
1.14 	support for operating purposes of public library service. This subdivision shall not apply 
1.15 	to a participating ~~cities or counties~~ city or county where the adjusted net tax capacity of 
1.16 	that city or county has decreased, if the dollar amount of the reduction in support is not 
1.17 	greater than the dollar amount by which support would be decreased if the reduction in 
1.18 	support were made in direct proportion to the decrease in adjusted net tax capacity.
1.19 	(b) For calendar year 2009 and later, in any calendar year in which a city's or 
1.20 	county's aid under sections 477A.011 to 477A.014 or credit reimbursement under section 
1.21 	273.1384 is reduced after the city or county has certified its levy payable in that year, it 
1.22 	may reduce its local support by the lesser of:
1.23 	(1) ten percent; or
2.1 	(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the 
2.2 	city's or county's revenue base, based on aids certified for the current calendar year. For 
2.3 	calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and 
2.4 	credit reimbursement reductions under the December 2008 unallotment, as well as any 
2.5 	aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the 
2.6 	commissioner of revenue will calculate the reductions under this paragraph and certify 
2.7 	them to the commissioner of education within 15 days of May 17, 2009.
2.8 	(c) For taxes payable in 2010 and later, in any payable year in which the total 
2.9 	amounts certified for city or county aids under sections 477A.011 to 477A.014 are less 
2.10 	than the total amounts paid under those sections in the previous calendar year, a city or 
2.11 	county may reduce its local support by the lesser of:
2.12 	(1) ten percent; or
2.13 	(2) a percent equal to the ratio of:
2.14 	(i) the difference between (A) the sum of the aid it was paid under sections 
2.15 	477A.011 to 477A.014 and the credit reimbursement it received under section 273.1384 
2.16 	in the previous calendar year and (B) the sum of the aid it is certified to be paid in the 
2.17 	current calendar year under sections 477A.011 to 477A.014 and the credit reimbursement 
2.18 	estimated to be paid under section 273.1384; to
2.19 	(ii) its revenue base for the previous year, based on aids actually paid in the previous 
2.20 	calendar year. The commissioner of revenue shall calculate the percent aid cut for each 
2.21 	county and city under this paragraph and certify the percentage cuts to the commissioner 
2.22 	of education by August 1 of the year prior to the year in which the reduced aids and 
2.23 	credit reimbursements are to be paid. The percentage of reduction related to reductions 
2.24 	to credit reimbursements under section 273.1384 shall be based on the best estimation 
2.25 	available as of July 30.
2.26 	(d) For calendar year 2011 and later, a city whose library operating budget is reduced 
2.27 	by ten percent or more due to retirement of personnel and other reduced operating costs 
2.28 	may reduce its local support by an equal amount.
2.29 	~~(d)~~ (e) Notwithstanding paragraph (a), (b), ~~or~~ (c), or (d), no city or county shall 
2.30 	reduce its support for public libraries below the minimum level specified in subdivision 1.
2.31 	~~(e)~~ (f) For purposes of this subdivision, "revenue base" means the sum of:
2.32 	(1) its levy for taxes payable in the current calendar year, including the levy on 
2.33 	the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a), 
2.34 	or 473F.08, subdivision 3, paragraph (a);
2.35 	(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
2.36 	(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.