Bill > HF409

This bill modifies the local optional revenue structure for school districts in Minnesota, introducing a new three-tier system of local optional allowances starting in fiscal year 2026. The first tier local optional allowance will be $250 in fiscal year 2026 and will be adjusted in subsequent years based on the general education basic formula allowance. The second tier local optional allowance will be $300, and the third tier will be $424. These allowances are calculated by multiplying the respective tier's allowance by the district's adjusted pupil units. The bill also adjusts how local optional levies are calculated, using a complex formula that considers the district's referendum market value per resident pupil unit. The levy amounts for the second and third tiers will have different market value thresholds for fiscal years 2025-2027 and beyond, with the third-tier threshold increasing to $671,345 in fiscal year 2027. Additionally, the bill includes a provision for proportional reduction of aid if a district's actual levy is less than its maximum levy limit. The changes are designed to provide more flexibility and financial support for school districts, with the new provisions becoming effective for revenue in fiscal year 2026 and later.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0409&ssn=0&y=2025