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SF1353 (Legislative Session 94 (2025-2026))

Minimum city aid distribution establishment

Related bill: HF350

AI Generated Summary

Senate File No. 1353 is a bill regarding local government aid in Minnesota. The bill proposes amendments to the process how cities in Minnesota receive financial aid from the state. These changes will take effect from 2024.

Key Points of the Bill: 1. If a city's received aid was less than what it actually needed in the previous year, then the next year, the city will get an aid amount which is the total of its previous year's aid plus a calculated “city formula aid”. 2. If a city's aid from the last year was equal to or greater than its unmet needs, then its aid for the next year will be the higher of either its unmet need or its last year’s aid amount, reduced by the smaller of either 10% of its population or 5% of its net levy (the money it collected through taxes) from the previous year. 3. A minimum guaranteed aid will be set for "first class" cities (major cities) which amounts to $150 multiplied by the population of the city.

In summary, this bill adjusts how cities receive state aid, aiming to ensure they receive funding based on actual needs, and it sets a minimum aid payout for large cities.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 12, 2025SenateFloorActionIntroduction and first reading
February 12, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A provision ensuring aid distribution minimums based on population for a city of the first class."
      ],
      "removed": [],
      "summary": "This bill addresses modifications to the city aid distribution system as outlined in section 477A.013, subdivision 9.",
      "modified": [
        "Updates to the aid calculation formula for cities related to certified aid, unmet need, and previous year aid certifications."
      ]
    },
    "citation": "477A.013"
  }
]

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