The bill modifies the calculation and distribution of town aid in Minnesota by amending existing statutes. It introduces a new "town aid factor," which is calculated as the product of a town's agricultural property factor, town area factor, and population factor. The previous method of calculating aid, which was based on a formula involving these factors multiplied by a fixed rate, has been replaced. Additionally, the bill specifies that each town's aid distribution will be based on the ratio of its town aid factor to the total of all towns' aid factors, ensuring a more equitable distribution of funds.

Furthermore, the bill increases the total aid available for towns from $10 million to $11.5 million starting in 2026. It also establishes that the new aid calculation method will take effect for aid payable in the calendar year 2026 and thereafter. The changes aim to provide more substantial support to local governments while ensuring that the distribution of aid is based on updated and equitable criteria.

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