HF 4861

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/07/2026 11:49 a.m.

A bill for an act
relating to taxation; aids to local governments; increasing the appropriations for
local government aid and county program aid; amending Minnesota Statutes 2024,
section 477A.03, subdivisions 2a, 2b, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 477A.03, subdivision 2a, is amended to read:

Subd. 2a.

Cities.

deleted text begin For aids payable in 2021 through 2023, the total aid payable under
section 477A.013, subdivision 9, is $564,398,012. For aids payable in 2024 and thereafter,
the total aid payable under section 477A.013, subdivision 9, is $644,398,012. deleted text end new text begin The total aid
payable under section 477A.013, subdivision 9, is $644,398,012, multiplied by the inflation
adjustment under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 477A.03, subdivision 2b, is amended to read:

Subd. 2b.

Counties.

(a) deleted text begin For aids payable in 2021 through 2023, the total aid payable
under section 477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be
allocated as required under Laws 2014, chapter 150, article 4, section 6. For aids payable
in 2024, the total aid payable under section 477A.0124, subdivision 3, is $154,197,053, of
which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4,
section 6. For aids payable in 2025 and thereafter, the total aid payable under section
477A.0124, subdivision 3, is $151,197,053. deleted text end new text begin The total aid payable under section 477A.0124,
subdivision 3, is $151,197,053, multiplied by the inflation adjustment under subdivision 6. new text end
On or before the first installment date provided in section 477A.015, paragraph (a), $500,000
of this appropriation shall be transferred each year by the commissioner of revenue to the
Board of Public Defense for the payment of services under section 611.27. Any transferred
amounts not expended or encumbered in a fiscal year shall be certified by the Board of
Public Defense to the commissioner of revenue on or before October 1 and shall be included
in the next certification of county need aid.

(b) deleted text begin For aids payable in 2021 through 2023, the total aid under section 477A.0124,
subdivision 4, is $145,873,444. For aids payable in 2024 and thereafter, the total aid under
section 477A.0124, subdivision 4, is $190,471,391. deleted text end new text begin The total aid payable under section
477A.0124, subdivision 4, is $190,471,391, multiplied by the inflation adjustment under
subdivision 6. new text end The commissioner of revenue shall transfer to the Legislative Budget Office
$207,000 annually for the cost of preparation of local impact notes as required by section
3.987, and other local government activities. The commissioner of revenue shall transfer
to the commissioner of education $7,000 annually for the cost of preparation of local impact
notes for school districts as required by section 3.987. The commissioner of revenue shall
deduct the amounts transferred under this paragraph from the appropriation under this
paragraph. The amounts transferred are appropriated to the Legislative Coordinating
Commission and the commissioner of education respectively.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 477A.03, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin The inflation adjustment is equal to one plus the
percentage increase, if any, in the implicit price deflator for government expenditures and
gross investment for state and local government purchases as prepared by the United States
Department of Commerce for the 12-month period ending March 31 of the previous calendar
year. The adjustment under this paragraph must not result in the amounts paid under
subdivisions 2a and 2b being less than the amounts paid in the prior aids payable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end