MN HF4227

Political subdivisions requesting state funding for more than half a local capital improvement project's total cost must describe how the project meets criteria in Minnesota Statutes section 16A.86, subdivision 4, paragraph (c).

Governor and legislature may fund projects exceeding the 50 percent state share requirement when determining there is a "compelling reason," evaluated through nine criteria measuring project value including regional significance, infrastructure effectiveness, job creation, and economic development impact.

Financial need criteria for exceeding the 50 percent state share include financial hardship on taxpayers, the political subdivision's debt burden and capacity, use of local option sales tax, and the foreseeability of the need and efforts made to save or raise funds.

State funds from transfers, grants, aid, apportionments, or allotments that are committed to a project must count toward the state share under this section.

Existing exceptions to the 50 percent state share limit remain for projects needed as a result of disasters or located in political subdivisions with very low average net tax capacity, and the bill does not apply to school district or school organization projects.