Bill > HF1989

This bill modifies the local optional revenue system for Minnesota school districts by adjusting the first and second tier local optional allowances and their corresponding levy calculations. Specifically, the bill increases the first tier local optional allowance from $300 to $300 for fiscal years 2025-2026, then to $550 for fiscal year 2027, with subsequent annual adjustments based on the general education basic formula allowance. The second tier local optional allowance remains at $424 for fiscal years 2025-2027, with future adjustments similarly tied to formula allowance changes. The bill also updates the equalizing factors for both tiers of local optional revenue, gradually increasing the thresholds for referendum market value per resident pupil unit over fiscal years 2025-2029. These changes will allow school districts more flexibility in generating local revenue, with the first tier first tier local optional allowance and equalizing factors increasing to help districts potentially raise more funds. The bill includes a provision that the changes will be effective for revenue starting in fiscal year 2027, and appears to include an appropriation mechanism, though the specific funding amount is not specified in the provided text.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1989&ssn=0&y=2025