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 new "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 of less than 10,000 and an average population 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 specifies that the city revenue need calculations will incorporate this new adjustment, ensuring that cities with lower population densities receive appropriate financial support.
Additionally, the bill modifies the total aid payable under section 477A.013, adjusting the figures for aids payable in 2024 and beyond. The total aid for 2024 is set at $644,398,012, with provisions for future adjustments in 2026 and thereafter. The effective date for these changes is specified as applicable for aids payable in calendar year 2026 and beyond. Overall, the bill aims to enhance financial support for cities that may struggle due to lower population densities, thereby promoting equitable distribution of local government aid.
Statutes affected: Introduction: 477A.011, 477A.03