Increasing county and municipal aid payments and making an appropriation. (FE)

The bill also makes the following fiscal and appropriation changes:

1. Creates a segregated fund appropriation from the local government aid fund for the expenditure restraint program payments and repeals the general purpose revenue appropriation for those payments. Under current law, a municipality is eligible to receive an expenditure restraint payment if its property tax levy is greater than five mills and if the annual increase in its municipal budget, subject to certain exceptions, is less than the sum of factors based on inflation and the increased value of property in the municipality as a result of new construction. The bill also provides that in 2025, each municipality will receive an expenditure restraint program payment that is equal to the payment received by the municipality in 2024.

2. Creates a segregated fund appropriation from the local government aid fund for public utility aid payments to counties and municipalities and repeals the general purpose revenue appropriation existing for those payments. Under current law, counties and municipalities where power production plants, electric substations, and general public utility structures are located receive public utility aid payments based on a statutory formula.

3. Creates a segregated fund appropriation from the local government aid fund for computer aid payments to taxing jurisdictions and repeals the general purpose revenue appropriation existing for those payments. Under current law, computers and certain computer-related equipment are exempt from local personal property taxes, and DOA makes computer aid payments to taxing jurisdictions to compensate them for the corresponding loss of property tax revenue.

4. Creates a segregated fund appropriation from the local government aid fund for exempt personal property aid payments to taxing jurisdictions and repeals the general purpose revenue appropriation existing for those payments. Under current law, machinery, tools, and patterns not used for manufacturing purposes are exempt from local personal property taxes, and DOA makes exempt personal property aid payments to taxing jurisdictions to compensate them for the corresponding loss of property tax revenue. The bill also appropriates funds from the local government aid fund to make aid payments to taxing jurisdictions during the 2024-25 fiscal year if the personal property tax is repealed during the 2023-24 legislative session.

5. Creates a segregated fund appropriation from the local government aid fund for video service provider fee aid payments to municipalities and repeals the general purpose revenue appropriation existing for those payments. Under current law, the state provides an aid payment to municipalities to compensate the municipalities for a state-mandated reduction in the amount of video service provider franchise fees that a municipality may impose and collect.

7. Repeals the appropriation from the police and fire protection fund that provides funds for county and municipal aid payments.

8. Eliminates the general purpose revenue provided to local government units through the Medical Assistance program for providing transportation for medical care.

9. Transfers, beginning in the 2024-25 fiscal year, $8,000,000 from the local government aid fund to the transportation fund in each fiscal year.