Sectional Analysis for CSSB 29(CRA)

Section 1: Changes name from state aid to priority revenue sharing.

Section 2: Changes name from state aid for miscellaneous municipal services to priority revenue sharing for municipal services.

Section 3: Changes name from state aid for miscellaneous municipal services to priority revenue sharing for municipal services. Requires communities that levy and collect property taxes to list the allocation received from revenue sharing for communities and its millage equivalent on the notice to taxpayer. Currently these funds do not have to be reported to the public.

Section 4: Changes name from state aid for miscellaneous municipal services to priority revenue sharing for municipal services.

Section 5: Changes name from revenue sharing to priority revenue sharing for municipal services.

Section 6: Changes name from miscellaneous services to municipal services.

Section 7: Changes name from miscellaneous services to municipal services.

Section 8: Renames Municipal Assistance Fund to Safe Communities Fund. Establishes two accounts within the fund --the base amount account and the per capita account. Allocates 1/3 of the appropriation to the Safe Communities Fund to the "base amount account" and 2/3 of the appropriation to the "per capita account." Changes the date the funds are distributed from February 1 to July 31.

Section 9: Adds a new section requiring payments received from both accounts in the Safe Communities Fund to be spent on the following services in the following order of priority:

• Police protection and related public safety services;
• Fire protection and emergency medical services;
• Water and sewer services not offset by user fees;
• Solid waste management;
• Other services determined by the governing body to have the highest priority

This section does not require a municipality to fund all requests it receives for services in a category before funding services in another category.

Section 10: This section is renamed to "Base amount account distributions." Excludes boroughs with a per capita full and true property value exceeding $500,000 when calculating the base amount to be received by new boroughs. Allows the distributions from the base amount account to be prorated if the amount allocated to the account is insufficient to pay the full base amount to each eligible municipality.

Section 11: Extends definition sections to incorporate new sections in this bill.

Section 12: Renames increased assistance to per capita account distribution. Specifies that allocations to the per capita account will be distributed to municipalities on a per capita basis.

Section 13: Adds a new section stating that the minimum entitlement to those communities eligible for payments under equalization of tax resources for municipal services, priority revenue sharing for municipal services and revenue sharing for Safe communities, is $40,000. Adds an additional section allowing the minimum entitlement to be adjusted (reduced) proportionately in the event future appropriations to the communities fund are reduced.

Section 14: Extends definition sections to incorporate new sections in this bill.

Section 15: Repeals section which specified intent of original legislation that a municipality that levies property taxes reduce those levies in proportion to the amount of state aid received.

Section 16: Establishes effect date of legislation.

(1/22/97: CSSB 29(CRA): mj)