DLS Presents Overview of State Aid to Local Governments

The Department of Legislative Services provided an Overview of State Aid to Local Governments earlier this week to the House Ways and Means Committee on the same day MACo representatives presented their 2015 Legislative Priorities. This comprehensive overview and analysis summarizes the fiscal 2016 reductions in local aid and provides funding trends.

The annual change in State Aid to Local Governments has fluctuated over the past several years.  In fiscal 2016 state aid grows by a slight .4%, the smallest growth rate since fiscal 2010 when state aid dropped by -3.6%. chart

Page 9 of the presentation summarizes the fiscal 2016 allowance by county. When payments for teachers retirement are included, total State aid to local governments is just over $7 billion, a reduction of  $198 million from current law. Many of these reductions are contingent upon passage of HB 72, the Budget Reconciliation and Financing Act of 2015 (BRFA).  The BRFA accompanies the budget bill to address the various statutory and uncodified changes to law necessary to implement the many provisions in the budget. The reductions contingent upon passage of the BRFA total $124.4 million. Discretionary reductions, those items not mandated in statute, total $73.6. A previous post on Conduit Street summarizes these items.

More detailed information on the proposed reductions to State Aid Programs can be found in the charts listed below. These charts detail reductions by county.

Reductions to State Aid Programs from Current Law Funding Levels
Proposed Change in State Aid
Proposed Change in Direct State Aid to Public Schools
Police Aid Funding
Local Highway User Revenue Allocations (does not include funds provide through supplemental budget)

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