| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to education finance; reducing referendum allowances; increasing local |
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| 3 | 3 | | 1.3 optional revenue authority; appropriating money; amending Minnesota Statutes |
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| 4 | 4 | | 1.4 2024, sections 126C.10, subdivision 2e; 126C.17, subdivision 1. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 2e.Local optional revenue.(a) Local optional revenue for a school district equals |
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| 8 | 8 | | 1.8the sum of the district's first tier local optional revenue and second tier local optional revenue. |
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| 9 | 9 | | 1.9For fiscal year 2025 and 2026, a district's first tier local optional revenue equals $300 times |
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| 10 | 10 | | 1.10the adjusted pupil units of the district for that school year. For fiscal year 2027 and later, a |
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| 11 | 11 | | 1.11district's first tier local optional revenue equals $400 times the adjusted pupil units of the |
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| 12 | 12 | | 1.12district for that school year. A district's second tier local optional revenue equals $424 times |
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| 13 | 13 | | 1.13the adjusted pupil units of the district for that school year. |
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| 14 | 14 | | 1.14 (b) A district's local optional levy equals the sum of the first tier local optional levy and |
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| 15 | 15 | | 1.15the second tier local optional levy. |
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| 16 | 16 | | 1.16 (c) A district's first tier local optional levy equals the district's first tier local optional |
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| 17 | 17 | | 1.17revenue times the lesser of one or the ratio of the district's referendum market value per |
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| 18 | 18 | | 1.18resident pupil unit to $880,000. |
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| 19 | 19 | | 1.19 (d) For fiscal year 2023, a district's second tier local optional levy equals the district's |
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| 20 | 20 | | 1.20second tier local optional revenue times the lesser of one or the ratio of the district's |
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| 21 | 21 | | 1.21referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's |
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| 22 | 22 | | 1.22second tier local optional levy equals the district's second tier local optional revenue times |
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| 23 | 23 | | 1.23the lesser of one or the ratio of the district's referendum market value per resident pupil unit |
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| 24 | 24 | | 1Section 1. |
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| 25 | 25 | | REVISOR CR/ES 25-0385602/13/25 |
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| 26 | 26 | | State of Minnesota |
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| 27 | 27 | | This Document can be made available |
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| 28 | 28 | | in alternative formats upon request |
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| 29 | 29 | | HOUSE OF REPRESENTATIVES |
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| 30 | 30 | | H. F. No. 2100 |
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| 31 | 31 | | NINETY-FOURTH SESSION |
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| 32 | 32 | | Authored by Myers and Wolgamott03/10/2025 |
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| 33 | 33 | | The bill was read for the first time and referred to the Committee on Education Finance 2.1to $510,000. For fiscal year 2025, a district's second tier local optional levy equals the |
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| 34 | 34 | | 2.2district's second tier local optional revenue times the lesser of one or the ratio of the district's |
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| 35 | 35 | | 2.3referendum market value per resident pupil unit to $626,450. For fiscal year 2026, a district's |
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| 36 | 36 | | 2.4second tier local optional levy equals the district's second tier local optional revenue times |
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| 37 | 37 | | 2.5the lesser of one or the ratio of the district's referendum market value per resident pupil unit |
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| 38 | 38 | | 2.6to $642,038. For fiscal year 2027 and later, a district's second tier local optional levy equals |
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| 39 | 39 | | 2.7the district's second tier local optional revenue times the lesser of one or the ratio of the |
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| 40 | 40 | | 2.8district's referendum market value per resident pupil unit to $671,345. |
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| 41 | 41 | | 2.9 (e) The local optional levy must be spread on referendum market value. A district may |
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| 42 | 42 | | 2.10levy less than the permitted amount. |
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| 43 | 43 | | 2.11 (f) A district's local optional aid equals its local optional revenue minus its local optional |
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| 44 | 44 | | 2.12levy. If a district's actual levy for first or second tier local optional revenue is less than its |
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| 45 | 45 | | 2.13maximum levy limit for that tier, its aid must be proportionately reduced. |
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| 46 | 46 | | 2.14 Sec. 2. Minnesota Statutes 2024, section 126C.17, subdivision 1, is amended to read: |
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| 47 | 47 | | 2.15 Subdivision 1.Referendum allowance.(a) A district's initial referendum allowance for |
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| 48 | 48 | | 2.16fiscal year 2021 2027 and later equals the result of the following calculations: |
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| 49 | 49 | | 2.17 (1) subtract $424 from the district's allowance under Minnesota Statutes 2018, section |
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| 50 | 50 | | 2.18126C.17, subdivision 1, paragraph (a), clause (5); |
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| 51 | 51 | | 2.19 (2) if the result of clause (1) is less than zero, set the allowance to zero; |
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| 52 | 52 | | 2.20 (3) add to the result in clause (2) any new referendum allowance authorized between |
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| 53 | 53 | | 2.21July 1, 2013, and December 31, 2013, under Minnesota Statutes 2013, section 126C.17, |
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| 54 | 54 | | 2.22subdivision 9a; |
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| 55 | 55 | | 2.23 (4) add to the result in clause (3) any additional referendum allowance per adjusted pupil |
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| 56 | 56 | | 2.24unit authorized between January 1, 2014, and June 30, 2019; |
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| 57 | 57 | | 2.25 (5) subtract from the result in clause (4) any allowances expiring in fiscal year 2016, |
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| 58 | 58 | | 2.262017, 2018, 2019, or 2020; |
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| 59 | 59 | | 2.27 (6) subtract $300 from the result in clause (5); and |
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| 60 | 60 | | 2.28 (7) if the result of clause (6) is less than zero, set the allowance to zero. |
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| 61 | 61 | | 2.29 (1) subtract $100 from the district's allowance for fiscal year 2026 calculated under |
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| 62 | 62 | | 2.30Minnesota Statutes 2024, section 126C.17, subdivision 1, paragraph (a), clause (7); and |
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| 63 | 63 | | 2.31 (2) if the result of clause (1) is less than zero, set the allowance to zero. |
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| 64 | 64 | | 2Sec. 2. |
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| 65 | 65 | | REVISOR CR/ES 25-0385602/13/25 3.1 (b) A district's referendum allowance equals the sum of the district's initial referendum |
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| 66 | 66 | | 3.2allowance, plus any new referendum allowance authorized after July 1, 2019 2025, minus |
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| 67 | 67 | | 3.3any allowances expiring in fiscal year 2021 2027 or later, plus any inflation adjustments |
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| 68 | 68 | | 3.4for fiscal year 2021 2027 and later approved by the voters prior to July 1, 2019 2025, |
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| 69 | 69 | | 3.5provided that the allowance may not be less than zero. For a district with more than one |
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| 70 | 70 | | 3.6allowance for fiscal year 2015 that expires in the same year 2027, the reduction under |
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| 71 | 71 | | 3.7paragraph (a), clauses clause (1) and (6), shall be made first from any allowances that do |
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| 72 | 72 | | 3.8not have an inflation adjustment approved by the voters. |
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| 73 | 73 | | 3.9 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. |
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| 74 | 74 | | 3.10 Sec. 3. APPROPRIATIONS. |
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| 75 | 75 | | 3.11 Subdivision 1.Department of Education.The sums indicated in this section are |
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| 76 | 76 | | 3.12appropriated from the general fund to the Department of Education for the fiscal years |
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| 77 | 77 | | 3.13designated. |
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| 78 | 78 | | 3.14 Subd. 2.General education aid.(a) For general education aid under Minnesota Statutes, |
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| 79 | 79 | | 3.15section 126C.13, subdivision 4: |
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| 80 | 80 | | 2026............3.16 $ |
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| 81 | 81 | | 2027............3.17 $ |
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| 82 | 82 | | 3.18 (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026. |
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| 83 | 83 | | 3.19 (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027. |
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| 84 | 84 | | 3Sec. 3. |
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| 85 | 85 | | REVISOR CR/ES 25-0385602/13/25 |
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