Bill > HF2510

This bill modifies the local optional revenue program for school districts in Minnesota by adjusting the funding structure and indexing mechanism. Starting in fiscal year 2026, the total local optional revenue allowance will be set at $724, which will increase to $920 in fiscal year 2028 and beyond, with subsequent years' allowances adjusted based on changes in the state's formula allowance. The local optional revenue will be divided into two tiers: a first tier of $300 and a second tier comprising the remaining amount. The bill also establishes how school districts can calculate their local optional levy by using a formula that considers their referendum market value per resident pupil unit, with specific market value thresholds for different fiscal years. For fiscal years 2026 and 2027, the market value threshold for the second tier local optional levy will be $642,038, increasing to $671,345 in fiscal year 2027 and later. The bill ensures that districts can levy less than their maximum allowed amount, and their aid will be proportionately reduced if they do so. These changes are designed to provide more flexible and responsive funding for school districts, with the modifications becoming effective on July 1, 2025.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2510&ssn=0&y=2025