Appropriations for local government aid and county program aid increased.

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.

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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
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The total aid

payable under section 477A.013, subdivision 9, is $644,398,012, multiplied by the inflation

adjustment under subdivision 6.
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EFFECTIVE DATE.

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This section is effective for aids payable in 2027 and thereafter.

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Sec. 2.

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

Subd. 2b.

Counties.

(a)
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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
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The total aid payable under section 477A.0124,

subdivision 3, is $151,197,053, multiplied by the inflation adjustment under subdivision 6.
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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)
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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
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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.

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EFFECTIVE DATE.

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This section is effective for aids payable in 2027 and thereafter.

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Sec. 3.

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

read:

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Subd. 6.

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Inflation adjustment.

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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.

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EFFECTIVE DATE.

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This section is effective for aids payable in 2027 and thereafter.

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