HF 4274 Summary

• Sets local government aid to cities at $564,398,012 for aids payable in 2021 and thereafter, replacing the previous statutory framework.

• Beginning in 2022, annual aid amounts will be adjusted based on inflation using the implicit price deflator for government purchases and gross investment plus the percentage increase in total city population.

• Inflation adjustment multiplier is capped with a minimum of 1.025 and maximum of 1.05, calculated using data from the U.S. Department of Commerce for the 12-month period ending March 31 of the previous calendar year.

• Establishes specific aid amounts for interim years: $519,398,012 for 2016-2017, $534,398,012 for 2018-2019, and $560,398,012 for 2020.

• Effective for aids payable in calendar year 2021 and thereafter.