HF4161

Purpose

This bill changes how Local Government Aid (LGA) is calculated for the City of Northern for aids payable in 2027. It sets a base-year calculation, using a specific formula to determine part of the 2027 aid by tying it to the city’s population from 2024.

Main Provisions

• Establishes a base-year formula for the City of Northern for aids payable in 2027.
• For the calculation, the city’s 2026 aid (which is used to compute 2027 aid under current rules) is deemed to be equal to 116.91 multiplied by Northern’s 2024 population.
• References Minnesota Statutes section 477A.013, subdivisions 8 and 9, as the framework governing the calculation.

Effects and Rationale

• Introduces a fixed base for the 2027 aid calculation, stabilizing the amount by anchoring it to the city’s 2024 population rather than year-to-year changes.
• Could reduce fluctuations in the 2027 LGA amount due to population changes or other factors affecting the 2026 aid figure.

Significance / Changes to Law

• Adds a specific base-year formula to the Local Government Aid statute for the City of Northern.
• Alters how the 2026 aid is treated in determining the 2027 aid, using a predefined multiplier (116.91) and the 2024 population.

Relevant Terms - base year formula aid - City of Northern - aids payable in 2027 - 2026 aid - 116.91 - 2024 population - Minnesota Statutes section 477A.013 subdivisions 8 and 9 - local government aid - population-based calculation