This 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 deleted. Instead, towns will now receive aid based on the ratio of their town aid factor to the total of all towns' aid factors, ensuring a more equitable distribution of funds.

Additionally, the bill increases the total annual town aid amount from $10 million to $11.5 million for aid payable in 2026 and thereafter. The effective date for these changes is set for aid payable in calendar year 2026 and beyond. This legislative change aims to provide greater financial support to local governments, particularly in rural areas, by adjusting the aid calculation to better reflect the needs of individual towns.

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