SF4328

Purpose

The bill changes how the City of Northern receives a specific state payment called local government aid (LGA) for the year 2027. It sets a fixed rule for the base year used in the calculation, using population data from 2024 with a multiplier.

Main Provisions

• For calculating aids payable in 2027 under Minnesota Statutes section 477A.013 subdivisions 8 and 9, the city’s aid amount for 2026 (which is used as the base in the 2027 calculation) is deemed to be equal to 116.91 multiplied by Northern’s 2024 population.

Significant Changes to Existing Law

• Introduces a targeted base-year adjustment for the City of Northern’s LGA calculation for 2027.
• Uses a specific multiplier (116.91) and a specific base-year population (2024) to determine the 2026 aid amount that feeds into the 2027 aid calculation.
• Applies only to aids payable in 2027 and only to the City of Northern.

Practical Effect

• The 2027 LGA payment for the City of Northern will be determined using a pre-set value based on 2024 population, potentially altering the city’s expected state aid compared to prior calculations.

Key Terms (for quick reference)

• local government aid (LGA)
• base year formula aid
• City of Northern
• aids payable in 2027
• 2026 aid
• 2024 population
• multiplier 116.91
• Minnesota Statutes section 477A.013 subdivisions 8 and 9
• deemed

Relevant Terms - local government aid - base year formula aid - 2027 aids payable - 2026 aid - 2024 population - 116.91 - Minnesota Statutes 477A.013(8)(9)