This bill amends Minnesota Statutes to establish a sparsity factor in the city aid formula, which will affect local government aid calculations. Specifically, it introduces a "sparsity adjustment" that provides additional funding for cities based on their population and population density. For cities with a population of 10,000 or more and an average population density of less than 150 per square mile, as well as for cities with a population under 10,000 and an average density of less than 30 per square mile, the sparsity adjustment is set at 200. All other cities will receive a sparsity adjustment of zero. The bill also modifies the calculation of "city revenue need" for different population brackets, incorporating the sparsity adjustment into the formulas.

Additionally, the bill specifies that the city revenue need calculations will be effective for aids payable in calendar year 2026 and thereafter. It also updates the total aid payable under section 477A.013, with a specified amount for 2024 and a placeholder for future years, indicating that the total aid for 2026 and beyond will be determined later. The changes aim to provide more equitable funding to cities based on their unique demographic and geographic challenges.

Statutes affected:
Introduction: 477A.011, 477A.03