This bill proposes an increase in local optional revenue for Minnesota school districts by adjusting the local optional revenue formula outlined in Minnesota Statutes, Section 126C.10, Subdivision 2e.

Key changes include: - Raising the first-tier local optional allowance from $300 per pupil in fiscal years 2025 and 2026 to $550 per pupil in fiscal year 2027. For fiscal year 2028 and beyond, this amount will be adjusted based on changes in the general education basic formula allowance. - Keeping the second-tier local optional allowance at $424 per pupil through fiscal year 2027. Starting in fiscal year 2028, this amount will also be adjusted based on changes in the general education basic formula allowance. - Increasing the equalizing factors for both first-tier and second-tier local optional revenue calculations, which helps determine the amount of state aid versus local levy funding. - School districts may continue to levy less than the permitted amount, and aid calculations will be adjusted if a district levies below its maximum allowed level.

The bill aims to provide additional financial flexibility to school districts by increasing state and local revenue contributions to education funding. The changes will take effect in fiscal year 2025 and extend into future years with adjustments based on general education funding formulas.