The bill amends Minnesota Statutes to establish a minimum city aid distribution for local governments, specifically addressing the aid distribution for cities based on their certified aid and unmet needs. For calendar year 2024 and beyond, if a city's certified aid from the previous year is less than its current unmet need, the city will receive an aid distribution that combines its previous year's certified aid with additional formula aid. Conversely, if the certified aid meets or exceeds the unmet need, the total aid will be determined by the greater of the unmet need or a reduced amount based on the previous year's certified aid. Notably, the bill introduces a provision that ensures cities of the first class receive a minimum aid distribution of $150 multiplied by their population.

Additionally, the bill updates the total aid payable under the relevant statute, increasing the amount for aids payable in 2025 and thereafter to $657,681,729. The previous amounts for aids payable in 2021 through 2023 have been deleted from the statute. The effective date for these changes is set for aids payable in calendar year 2025 and beyond.