Section 1. City formula aid. Specifies that for aids payable in 2018 and thereafter, the formula aid for a city is equal to the product of (i) the difference between its unmet need and its certified aid in the prior year before any statutory aid adjustment and (ii) the aid gap percentage. Current law looks at the city’s formula aid, rather than certified aid, in the previous year. A city’s formula aid does not take into account any limits on annual decreases. Effective for aids payable in 2017 and thereafter.
Section 2. City aid distribution. Provides that in 2018 and thereafter, if a city’s certified aid before any statutory aid adjustment for the previous year is less than its unmet need, the city shall receive a distribution equal to the sum of: (i) its certified aid in the previous year before any aid adjustment; (2) the city’s formula aid; and (3) its aid adjustment.
If a city’s certified aid before any statutory adjustment for the previous year is equal to or greater than its current unmet need, the total aid is equal to the greater: (1) its unmet need plus any aid adjustment; or (2) the amount it was certified to receive in the previous year minus the lesser of $10 multiplied by its population, or five percent of its net levy in the prior year. Effective for aids payable in calendar 2018 and thereafter.
Section 3. Onetime adjustment for certain cities. Provides that aid paid to a city in 2017 shall be increased to equal the amount of aid it received in 2016 if its certified aid for 2016 is less than its certified aid in 2016 and its certified aid for 2016 is less than its unmet need for aids payable in 2017. The amount computed under this section shall be used for an affected city’s 2017 certified aid amount when calculating formula aid for 2018. Effective for aids payable in calendar 2017 and 2018.