Bill > SF2239

This bill modifies the local optional revenue provisions for school districts in Minnesota, introducing changes to how districts can generate additional funding through local levies. The bill adjusts the first and second tier local optional revenue allowances, establishing specific dollar amounts for fiscal years 2025-2027 and creating a mechanism for future increases based on the general education basic formula allowance. The first tier local optional allowance starts at $300 in fiscal years 2025-2026, increases to $550 in fiscal year 2027, and will be adjusted annually thereafter based on formula changes. Similarly, the second tier local optional allowance is set at $424 for fiscal years 2025-2027, with future adjustments tied to formula changes. The bill also modifies the equalizing factors for these levies, gradually increasing the thresholds for first and second tier local optional levies across fiscal years 2025-2029. This means school districts will have more flexibility in generating local revenue, with the levy amounts tied to their adjusted pupil units and adjusted based on their referendum market value. The changes are designed to provide school districts with more predictable and potentially increased funding options, with the provisions becoming effective for revenue in fiscal year 2027 and beyond.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2239&ssn=0&y=2025