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S.F. No. 582 - Base Year Formula Aid for Newly Incorporated City
Author: Senator Thomas M. Bakk
Prepared By: Eric S. Silvia, Senate Counsel (651/296-1771)
Date: February 27, 2017


S.F. No. 582 provides that a city that incorporated on October 13, 2015, and that first qualifies for aid in 2017 (city of Rice Lake) will have its formula aid for 2016 equal to $115 times its population. Under current law, a city’s formula aid in the previous year is used to calculate aid for the following payable year. When a town incorporates as a city, its formula aid for the previous year is zero. 

Effective for aids payable in 2017. The 2017 aid payment for Rice Lake shall be recalculated and treated as an aid correction.

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