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HF2100 (Legislative Session 94 (2025-2026))

Referendum allowances reduced, local optional revenue authority increased, and money appropriated.

Related bill: SF2340

AI Generated Summary

This bill proposes changes to Minnesota's education finance system by adjusting local optional revenue and referendum allowances for school districts. Key provisions include:

  1. Increasing Local Optional Revenue:

    • The bill raises first-tier local optional revenue from 300 to 400 times the adjusted pupil units starting in fiscal year 2027.
    • The second-tier local optional revenue remains at 424 times the adjusted pupil units.
    • The calculation for local optional levies and state aid to districts is adjusted accordingly.

  2. Reducing Referendum Allowances:

    • The bill modifies how school districts calculate their referendum allowances, effectively reducing referendum revenue while increasing local optional revenue.
    • Several steps are outlined to adjust and phase out old allowances, with reductions starting in fiscal year 2026 and continuing into 2027 and beyond.

  3. General Impact:

    • By shifting revenue sources, the bill aims to provide more stable and predictable funding through local optional revenue while reducing dependency on voter-approved referendum levies.

Overall, the bill seeks to rebalance school funding mechanisms by granting districts more authority under local optional revenue while limiting referendum-based funding.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading, referred toEducation Finance
March 09, 2025HouseFloorActionIntroduction and first reading, referred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the calculation and components of local optional revenue for school districts under section 126C.10, subdivision 2e.",
      "modified": [
        "Updates the multipliers for first and second tier local optional revenue for fiscal years 2025 onward."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 2e"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This legislation adjusts the calculation of referendum allowance for Minnesota school districts under section 126C.17, subdivision 1.",
      "modified": [
        "Modifies the initial referendum allowance calculations and considerations for fiscal years 2027 and later."
      ]
    },
    "citation": "126C.17",
    "subdivision": "subdivision 1"
  }
]

Sponsors