Section 15-1-121, MCA, contains the formula for calculating the annual growth factor that is applied to Entitlement Share Payments. The Legislative changes in 2011 based the growth factor on the collection of gambling, motor vehicle, beer, liquor and financial institutions tax revenues over the most recent three-year period. It also includes a factor for personal and corporate income tax collections.
During the 2013 Session, the Legislature amended 15-1-121, MCA, to provide that entitlement payments are intended to provide a secure and predictable stream of revenue with a growth adjustment tied to state collections, with a floor of zero. For Fiscal Year 2014, the growth factor on the Entitlement Share Payment Program was 3.5%, which added $2.15 million to cities and towns.
The League will monitor the Entitlement Share Payments program to ensure its continuation and application of growth factor adjustments.