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Major State Aids & Taxes: Disparity Reduction Aid

Program Description and Aid Amount and Reporting

2014 Disparity Reduction Aid: $18.0 million

Disparity reduction aid is a state aid program that distributed $18,019,159 to counties, towns, and school districts in 2014. The aid is directed to taxing jurisdictions in areas that had inordinately high tax rates in the base year of 1988. The basis for computing the aid amount is the relationship of the area's 1988 tax rate to a benchmark tax rate of 100 percent of tax capacity.

Disparity Reduction Aid: 2014
Amount (thousands) Percent of total
Northern Regions Northwest (1)
Headwaters (2)
Arrowhead (3)
West Central (4)
Five (5)
East Central (7E)
$546
253
10,763
317
362
146
3.0%
1.4
59.7
1.8
2.0
0.8
Southern Regions Six East (6E)
Upper MN Valley (6W)
Central MN (7W)
Southwest (8)
Nine (9)
Southeastern MN (10)
354
527
158
798
836
1,596
2.0
2.9
0.9
4.4
4.6
8.9
Total Nonmetro $16,654 92.4%
Metro Region Hennepin County
Ramsey County
Remaining Metro
740
593
32
4.1
3.3
0.2
Total Metro $1,365 7.6%
State Total $18,019 100.0%

December 2017

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