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SF2340 (Legislative Session 94 (2025-2026))

Referendum allowances reduction provision, local optional revenue authority increase provision, and appropriation

Related bill: HF2100

AI Generated Summary

This Minnesota Senate bill (S.F. No. 2340) focuses on education finance, specifically modifying funding mechanisms for local schools. The bill makes changes to referendum allowances and local optional revenue authority, which impact how school districts generate and receive funding.

Key Provisions:

  1. Increased Local Optional Revenue

    • Adjusts amounts based on pupil units and market value, allowing districts to generate more funds locally.
    • For fiscal years 2025-2026, the first-tier revenue is set at $300 per adjusted pupil unit; starting in fiscal year 2027, this amount increases to $400.
    • The second-tier local optional revenue remains at $424 per adjusted pupil unit.

  2. Local Optional Levy Adjustments

    • Establishes formulas for first-tier and second-tier levy limits.
    • Revenue is calculated based on a district's referendum market value per pupil.
    • Districts can levy less than the maximum permitted amount if desired.

  3. Reduced Referendum Allowances

    • Lowers baseline referendum allowances for fiscal years 2026 and beyond.
    • Implements a step-by-step formula for determining a district's referendum allowance.
    • Ensures that referendum funding adjustments include inflation provisions only if previously approved by voters.

  4. General Purpose

    • Shifts more funding to local optional revenue, reducing reliance on voter-approved referendums.
    • Could result in more stable school funding by allowing districts to generate increased revenue without requiring frequent voter approval.
    • Appropriates funds to support these changes.

Implications:

  • Pros: Provides school districts with more predictable local revenue; reduces the need for frequent referendum votes.
  • Cons: May reduce voter control over school funding; different impacts across districts depending on property values.

This bill would reshape education finance by shifting funding reliance from referendums to local optional revenue, potentially creating greater financial stability for schools in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025HouseFloorActionReferred toEducation Finance
March 09, 2025SenateFloorActionReferred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increased multiplier for local optional revenue based on adjusted pupil units."
      ],
      "removed": [],
      "summary": "The bill modifies the local optional revenue calculation for school districts.",
      "modified": [
        "Updated calculations for first and second tier local optional revenue and levy ratios."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 2e"
  },
  {
    "analysis": {
      "added": [
        "New provisions for districts' initial referendum allowance calculations for fiscal year 2027 and later."
      ],
      "removed": [],
      "summary": "The bill amends the referendum allowance for school districts.",
      "modified": [
        "Adjusted initial referendum allowance calculation."
      ]
    },
    "citation": "126C.17",
    "subdivision": "subdivision 1"
  }
]

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