Purpose of the Bill

The bill aims to provide financial assistance to the cities of Falcon Heights and St. Paul, Minnesota. This assistance is intended to compensate these cities for costs incurred due to events at the State Fairgrounds. These costs include expenses related to public safety, such as police, fire, and emergency medical services, as well as public works expenses for traffic management, sanitation, and neighborhood cleanup and restoration.

Main Provisions

• Aid Payments: The cities of Falcon Heights and St. Paul will receive aid payments from the Minnesota Department of Revenue. Falcon Heights will receive $75,000, and St. Paul will receive $500,000 for the year 2026.

• Annual Inflation Adjustment: From 2027 onwards, the aid amounts will be adjusted annually based on inflation. The adjustment will use the implicit price deflator for government consumption and expenditures and gross investment provided by the Bureau of Economic Analysis.

• Certification and Payment Schedule: The Department of Revenue will certify the aid amounts by August 1 each year and make the payments by July 20 the following year.

Significant Changes to Existing Law

• Introduction of State Fairgrounds Aid: The bill proposes new legislation in Minnesota Statutes chapter 477A to establish a specific fund for aiding Falcon Heights and St. Paul due to State Fairgrounds activities.

• Inflation Adjustment Mechanism: The bill includes a mechanism to adjust aid based on inflation, ensuring that the aid keeps pace with rising costs over time.

Relevant Terms

state fairgrounds, public safety services, municipal services, aid payments, Falcon Heights, St. Paul, inflation adjustment, implicit price deflator, revenue commissioner, appropriation.