HF350

This legislative bill pertains to the distribution of local government aid in the state of Minnesota. It amends the existing statutes to guarantee that every city receives a minimum amount of aid. Here's how it works:

1. Aid Calculation for Cities with Increasing Needs: For cities whose previous year's aid was less than their current unmet needs, they will receive an aid amount that combines their previous year's aid with an additional formula aid.

2. Aid Calculation for Cities with Stable or Decreasing Needs: For cities whose aid in the previous year was equal to or greater than their current needs, they will receive an amount that is either equivalent to their unmet needs or slightly less than what they received the previous year, with a cap on reductions to the lesser of either 10% of its population or 5% of its last year’s tax levy.

3. Special Provision for Major Cities: Specifically for 'first class' cities (generally larger cities or those meeting certain criteria), there is a stipulation that their aid should not be less than an amount calculated at $150 times the city's population.

This bill aims to adjust and ensure more equitable distribution of state aid to cities based on their financial needs and changes from year to year.