1.1                          A bill for an act 
  1.2             relating to local government aids; amending the 
  1.3             distribution formula and increasing the appropriation; 
  1.4             amending Minnesota Statutes 2003 Supplement, sections 
  1.5             477A.013, subdivision 8; 477A.03, subdivision 2a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   477A.013, subdivision 8, is amended to read: 
  1.9      Subd. 8.  [CITY FORMULA AID.] In calendar year 2004 and 
  1.10  subsequent years, the formula aid for a city is equal to the 
  1.11  need increase percentage multiplied by the difference between 
  1.12  (1) the city's revenue need multiplied by its population, and 
  1.13  (2) the sum of the city's net tax capacity multiplied by the tax 
  1.14  effort rate~~, and the taconite aids under sections 298.28 and~~ 
  1.15  ~~298.282, multiplied by the following percentages:~~  
  1.16     ~~(i) zero percent for aids payable in 2004;~~ 
  1.17     ~~(ii) 25 percent for aids payable in 2005;~~ 
  1.18     ~~(iii) 50 percent for aids payable in 2006;~~ 
  1.19     ~~(iv) 75 percent for aids payable in 2007; and~~ 
  1.20     ~~(v) 100 percent for aids payable in 2008 and thereafter.~~  
  1.21  ~~No city may have a formula aid amount less than zero~~.  The need 
  1.22  increase percentage must be the same for all cities.  
  1.23     The applicable need increase percentage must be calculated 
  1.24  by the Department of Revenue so that the total of the aid under 
  1.25  subdivision 9 equals the total amount available for aid under 
  2.1   section 477A.03 after the subtraction under section 477A.014, 
  2.2   subdivisions 4 and 5.  
  2.3      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  2.4   payable in 2005 and thereafter. 
  2.5      Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.6   477A.03, subdivision 2a, is amended to read: 
  2.7      Subd. 2a.  [CITIES.] For aids payable in 2004, the total 
  2.8   aids paid under section 477A.013, subdivision 9, are limited to 
  2.9   $429,000,000.  For aids payable in 2005 and thereafter, the 
  2.10  total aids paid under section 477A.013, subdivision 9, are 
  2.11  increased to ~~$437,052,000~~ $487,052,000. 
  2.12     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  2.13  payable in 2005 and thereafter.