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SF2239 (Legislative Session 94 (2025-2026))

School districts local optional revenue increase provision and appropriation

Related bill: HF1989

AI Generated Summary

This bill proposes an increase in local optional revenue for Minnesota school districts by amending Minnesota Statutes 2024, section 126C.10, subdivision 2e. The key provisions include:

  1. Increasing Local Optional Revenue: The bill modifies the calculation of first-tier and second-tier local optional revenue by increasing the allowance amounts over the coming years.

    • The first-tier local optional allowance is set at $300 for fiscal years 2025 and 2026 and increases to $550 in fiscal year 2027. For fiscal year 2028 and beyond, it will be adjusted annually based on the general education basic formula allowance.
    • The second-tier local optional allowance remains at $424 for fiscal years 2025 through 2027 and will also be adjusted annually starting in fiscal year 2028.

  2. Adjusting Equalizing Factors: The bill modifies the equalizing factors used to determine the amount of local optional levies a district can generate based on its property wealth.

    • First-tier equalizing factors increase from $880,000 in fiscal years 2025-2026 to $2,347,000 in fiscal year 2029 and beyond.
    • Second-tier equalizing factors are increased gradually from $626,450 in fiscal year 2025 to $940,000 in fiscal year 2029 and beyond.

  3. Determining Levy and Aid Allocation:

    • A district's local optional levy consists of the sum of the first and second-tier levies, which depend on the district’s property wealth.
    • The local optional aid a district receives is calculated as its total local optional revenue minus its levy. If a district levies less than its maximum amount, its aid is proportionally reduced.

  4. Purpose: By increasing local optional revenue, the bill aims to provide school districts with more financial flexibility while adjusting equalization measures to account for varying property wealth across districts.

In summary, this legislation seeks to enhance school district funding by expanding local optional revenue while introducing mechanisms to balance taxation across districts with differing property values.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2025HouseFloorActionIntroduction and first reading
March 05, 2025SenateFloorActionIntroduction and first reading
March 05, 2025HouseFloorActionReferred toEducation Finance
March 05, 2025SenateFloorActionReferred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provisions for fiscal year 2028 and later for local optional allowance adjustments."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill increases local optional revenue for school districts under section 126C.10, subdivision 2e.",
      "modified": [
        "Adjusts first and second tier local optional revenue allowances and equalizing factors."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 2e"
  }
]

Sponsors