Bill > SF1254

This bill modifies the local optional revenue program for school districts in Minnesota by adjusting the revenue allowance and levy calculations. Specifically, it establishes a new funding structure for fiscal years 2026 and 2027, with the total local optional revenue allowance set at $724, and for fiscal year 2028 and beyond, creating a dynamic allowance that will be indexed to the state's formula allowance. The bill breaks the local optional revenue into two tiers: a first tier of $300 and a second tier calculated as the difference between the total allowance and the first tier. For each tier, the revenue is calculated by multiplying the tier's allowance by the district's adjusted pupil units, and the levy is determined by a complex formula that considers the district's referendum market value per resident pupil unit. The bill also provides specific levy calculation rules for different fiscal years, with the second tier levy calculation changing over time, ultimately settling at a maximum referendum market value ratio of $671,345 for fiscal year 2027 and later. The changes are designed to provide more flexible and inflation-adjusted funding for school districts, with the effectiveness date set for July 1, 2025.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1254&ssn=0&y=2025