The bill proposes to establish a base year formula aid specifically for the city of Baldwin, as part of local government aid provisions. It introduces a new calculation method under Minnesota Statutes, section 477A.013, subdivisions 8 and 9, which will determine the aid payable to Baldwin for the year 2026. According to the bill, the aid for Baldwin in 2025 will be calculated by multiplying a specified amount by the city's population.

Additionally, the bill specifies that this new aid calculation will only be applicable for aids payable in 2026, indicating a limited timeframe for its implementation. The effective date clause ensures that the provisions outlined in the bill will not affect any prior or subsequent aid calculations outside of the specified year.