Bill > HF921

This bill clarifies how school districts must adjust their state aid and levy limitations when they receive excess tax increment funds (a type of tax revenue generated from special development districts). The bill makes several technical changes, primarily updating section references and terminology. Specifically, it modifies how a school district must calculate reductions in state aid and local levy when it receives more than $25,000 in excess tax increment funds. The calculation involves subtracting an amount from the district's current fiscal year aid based on a complex ratio involving various types of existing state aid categories, such as long-term facilities maintenance aid, community education aid, and referendum equalization aid. If the full reduction cannot be made in the specified fiscal year, the bill allows the reduction to be spread across subsequent years. The key purpose is to ensure that when a school district receives unexpected additional tax revenue through excess tax increment, its state aid and local levy are proportionally adjusted to prevent double-funding.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0921&ssn=0&y=2025