Bill > HF351

This bill modifies the local government aid distribution for cities in Minnesota, creating a minimum city aid distribution mechanism. Specifically, the bill establishes that for cities located in counties containing a first-class city, the aid distribution cannot be less than $150 multiplied by the city's population, provided the city's "unmet need" (a technical term referring to the difference between a city's funding needs and its current aid) is greater than zero. The bill also increases the total aid payable under the existing city aid distribution formula, raising the total from $644,398,012 in 2024-2025 to $722,704,893 in 2026 and subsequent years. These changes are designed to ensure that smaller cities in counties with larger metropolitan areas receive a more substantial minimum level of state aid, potentially helping to address funding disparities between urban and rural municipalities. The new provisions will take effect for aid payments in calendar year 2026 and thereafter, giving local governments time to plan for the changes in their budgeting processes.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0351&ssn=0&y=2025