Bill > SF128

This bill modifies the city aid formula in Minnesota Statutes by introducing a new "sparsity adjustment" that provides additional financial support for cities with low population density. The bill adds a sparsity adjustment of 200 for two specific types of cities: those with 10,000 or more residents and a population density below 150 people per square mile, and cities with fewer than 10,000 residents and a population density below 30 people per square mile. This adjustment will be incorporated into the calculation of a city's "revenue need," which is a key factor in determining state aid. The bill also changes the total aid payable to cities, increasing the amount for 2024 and 2025 to $644,398,012, with a placeholder for future years' funding. These changes are designed to provide additional financial support to sparsely populated cities, recognizing their unique challenges in providing municipal services. The provisions will take effect for aids payable in calendar year 2026 and subsequent years, giving cities time to prepare for the new calculation method.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0128&ssn=0&y=2025