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Senate taxes committee restores sparsity adjustment for local government aid; amendment adopted
Summary
Senate File 128, amended and advanced by the Senate Taxes Committee, would reinstate a sparsity adjustment to the Local Government Aid (LGA) formula and increase the LGA pool by $25,500 to hold cities harmless; Hibbing and about 10 other low‑density cities would see increases.
Senate Taxes Committee members adopted an amendment and heard testimony on Senate File 128, a bill that reinstates a sparsity adjustment to the local government aid formula and raises the 2026 LGA appropriation so no city loses funding.
The bill “modifies the calculation of city aid” and “reincorporates the sparsity adjustment,” Senator Farnsworth told the committee, adding that the change targets cities with low population density and that the amendment increased the LGA total by $25,500 to avoid reducing other cities’ aid. Ms. Johnson, the committee fiscal analyst, said the amendment’s increased appropriation holds cities harmless: “if you look…
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