This bill amends Minnesota Statutes to establish a minimum city aid distribution for local government aid, specifically addressing the aid distribution for cities based on their certified aid and unmet needs. The new legal language specifies that starting in calendar year 2024, if a city's certified aid from the previous year is less than its current unmet need, it will receive an aid distribution that includes its previous year's certified aid plus additional formula aid. Conversely, if the certified aid is equal to or greater than the unmet need, the total aid will be determined by either the unmet need or a calculated amount based on the previous year's certified aid, with a stipulation that no city can receive less than $0 in total aid. Notably, for cities of the first class, the aid distribution must not be less than $150 multiplied by the city's population.

Additionally, the bill updates the total aid payable under the relevant statute for the years 2026 and beyond, increasing the total aid amount to $657,681,729. The effective date for these changes is set for aids payable in calendar year 2026 and thereafter. The bill also removes previous aid amounts designated for the years 2021 through 2023, reflecting a shift in focus to future aid distributions.

Statutes affected:
Introduction: 477A.013, 477A.03