HB 1312 Summary

• Requires the department of local government finance to develop criteria allowing political subdivisions to retain part of their levy and budget following government reorganization or township merger, rather than losing it due to realized savings.

• Limits the adjustment amount to a declining percentage of first-year savings: 50% in years one and two, 30% in year three, and 10% in year four and thereafter.

• Requires the fiscal body of the reorganizing political subdivision or new township to determine and certify to the department which adjustment amount it wishes to accept.

• Requires any adjustment accepted to comply with the reorganization agreement under which the subdivision is reorganized.

• Effective July 1, 2011.