For years, members of the Sherburne County Board and county boards across the state have been concerned about the lack of funding for certain state-mandated programs and services.

 

Tuesday, the county board passed a resolution supporting a major increase and a new formula for the calculation and distribution of County Program Aid (CPA) by the state.

 

CPA is money provided to counties to cover the cost of  programs mandated by the state. Counties depend on CPA to keep the property tax levy down. But the current structure of the CPA formula is volatile, sometimes interfering with counties’ ability to accurately budget for services.

 

“I know a fair number of cities and counties that use CPA only for one-time projects because they’re afraid it’s going to get cut,” said Sherburne County Administrator Steve Taylor.

 

The current formula has resulted in dramatic reductions in CPA. About one-third of counties across the state have lost at least 50% of their funding since 2005. Because of state budget issues in 2003, Sherburne County received $1,240,490, which was about half the amount certified by the state.

 

A year later, the county’s CPA was cut completely.

 

Since then, CPA for the county has ranged from $2.3 to about $4 million. And it’s that inconsistency that has counties concerned.

 

“Business cycles ebb and flow,” said Taylor. “There’s going to be a future recession at some point, and  they’re going to start cutting again. It’s been going up because we’ve got a budget surplus, but it’s not always going to be that way.”

 

Last October, the Association of Minnesota Counties assembled a CPA work group that included representatives from 20 counties, representatives from the Metropolitan Inter-County Association and the Minnesota Rural Counties Caucus, to analyze and develop a new formula that addresses the current funding needs of counties.

 

That group unanimously approved a new formula that incudes additional funding of $40 million, a guaranteed funding floor of $350,000 in tax base equalization aid and a 5% cap on annual decreases.

 

Taylor said the resolution passed by the board Tuesday will be sent to state lawmake for consideration at the next legislative session.