Minnesota Association of Small Cities'
2026 State Legislative Priorities 

In 2026, we are projected to get $18 million in revenue for small cities. Monitoring this account and making sure the full amount is sent to cities is a top priority. We will also push for a renewed bonding bill that includes significant investment in LRIP.

EMS

In 2025, we advocated for an increased investment, and while we did get some money, it was not nearly enough. This Session, we will monitor how those funds are being distributed and if there are changes required.

WORKFORCE HOUSING

It is expected that there will once again be some zoning changes proposed this session. Our goal is to work with other city organizations in killing these proposals entirely, but at the very least to make sure they are modified, similar to last session, to exclude small cities.

CITY AUDITS

Last session, we were able to get the threshold raised for audits on small cities. MAOSC will continue to have discussions with the State Auditor’s office and try to find creative ways to mitigate concerns about the lack of available auditors for small cities.

LOCAL SALES TAXES

With competing options on how to adjust the current requirements for local sales taxes, we will be monitoring this closely. Our goal is to make it a simple process for cities to enact local taxes while also being mindful of the potential impacts on cities that do not have as much retail tax base. We are supportive of an equity distribution but not so much that it is financially untenable for cities.

WATER/WASTEWATER INFRASTRUCTURE

Although there was a small bonding bill in 2025, no city-specific projects were included. Many of our small communities are facing costly but very necessary water infrastructure issues. We will push for a renewed bonding bill with significant investment in water infrastructure.

LGA

Last session, there was a proposal that would have cut LGA. With a potential deficit on the horizon, this idea will probably be reintroduced. MAOSC will oppose any effort to reduce LGA and will support efforts to have regular increases adjusted for inflation.

CANNABIS / OCM

Recently, the office has published a guideline for retailers looking to sell low-dose products. With many city-run municipal liquor stores, the application process seems to be geared to private business and not applicable to public retail locations. We will work to make sure cities have a clear path to continue selling low-dose products.

OTHER

In addition to this session's top priorities outlined above, MN Small Cities continues to track legislation on other key items of importance to small cities,including but not limited to the areas of: 

• Broadband 

• Childcare

• Economic Development

• Public Safety

• Grants, Programs and Other Funding Opportunities

MANDATES, AUTONOMY & LOCAL CONTROL

MN Small Cities will continue to oppose any efforts that would result in additional unfunded mandates for small cities. 

We are determined to protect the ability of city leaders to make decisions in the best interest of their own communities. Supporting the authority of elected officials is one of the organization's paramount goals. 

We will continue working to guard against the exclusion of smaller cities/greater MN from access to programs as well as "scope creep" of larger cities gaining access to programs originally created for small cities.