Committee considers modest boost to township aid and formula fix to ensure full distribution of appropriations

Senate File 2116, a proposal to increase state aid to townships and to adjust the distribution formula so the entire appropriation is used each year, was heard April 3 in the Minnesota Senate Tax Committee.

Sponsor remarks noted townships have not received an increase in this aid since 2014 and said the bill would raise annual township aid from $10 million to $11.5 million while changing the formula so that the appropriation is fully distributed. Graham Berg Moberg of the Minnesota Association of Townships testified the change would raise aid per township resident from roughly $10 today to approximately $12–$13 under the bill, and described townships as a frugal unit of government that use funds for roads, emergency services and delivering local needs.

Eagle's Nest Township Supervisor Brian Harrington described his township’s roughly $325,000 annual budget and said townships are being asked to shoulder more responsibilities — including emergency response and Internet access — and gave examples of capital needs such as a brush fire truck (new: about $500,000; used: about $250,000) and an ATV purchase for first responders costing roughly $9,000. Harrington urged inclusion of SF 2116 in the omnibus tax bill.

Committee counsel explained the current statutory formula can compute township-specific amounts that sum to less than the appropriation in some years; the bill would tie each township’s share to the appropriation so the full amount is distributed. Members asked clarifying questions and the committee laid the bill over for additional consideration.

Action and next steps: SF 2116 was laid over for possible inclusion in the tax omnibus; authors and staff will coordinate to finalize formula language.