SF217

Purpose

Explain the intent of the bill: to provide a one-time, substantial funding boost from the state general fund to support the Small Cities Assistance Account, a transportation-related fund managed under state law.

Main Provisions

• A one-time appropriation of $25,000,000 from the general fund in fiscal year 2026.
• The money is directed to the commissioner of transportation for deposit into the Small Cities Assistance Account, which is governed by Minnesota Statutes section 162.145, subdivision 2.
• All funds deposited under this paragraph must be allocated and distributed consistent with Minnesota Statutes section 162.145, and this distribution is to occur in the July 2025 payment.

Significance / Changes to Existing Law

• Creates a one-time increase in available funds for the Small Cities Assistance Account, funded from the general fund.
• Reinforces that the distribution of these funds will follow the existing statutory framework (Minnesota Statutes section 162.145), ensuring a statutory process governs how the money is allocated to eligible recipients.
• The timing indicates a fiscal year 2026 appropriation, with actual distribution set to occur in the July 2025 payment, establishing a concrete schedule tied to the statute.

Practical Impact

• Provides a substantial, temporary infusion of money to support small cities’ transportation-related needs.
• Ensures distribution will be handled through the established Small Cities Assistance Account mechanism, following existing rules for allocation.

Optional Implementation Notes

• Agencies and localities should anticipate the July 2025 payment schedule for receiving funds.
• Eligible uses and recipient criteria will be determined by the underlying Minnesota Statutes §162.145, so stakeholders should review that statute for specifics on eligible projects and distribution formulas.

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Relevant Terms - small cities assistance account - general fund - commissioner of transportation - Minnesota Statutes section 162.145, subdivision 2 - one-time appropriation - fiscal year 2026 - July 2025 payment