Bill > HF350

This bill modifies the state's local government aid distribution system, specifically focusing on aid provided to cities. The bill establishes a new minimum aid distribution requirement for cities of the first class (typically larger cities), ensuring they receive at least $150 multiplied by their population. Currently, city aid calculations are based on a city's certified aid from the previous year and its "unmet need," which is a technical term related to the difference between a city's current funding and its calculated aid requirements. The bill increases the total aid payable to cities from $644,398,012 in 2024-2025 to $657,681,729 in 2026 and beyond. These changes are designed to provide more stable and potentially increased financial support to municipalities, with a particular emphasis on ensuring larger cities receive a baseline level of funding. The provisions will take effect for aid payments in calendar year 2026 and subsequent years, giving cities and state financial planners time to prepare for the new distribution methodology.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0350&ssn=0&y=2025