1.1 A bill for an act
1.2 relating to education finance; increasing school district local optional revenue;
1.3 indexing the local optional revenue program to the formula allowance; amending
1.4 Minnesota Statutes 2024, section 126C.10, subdivision 2e.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read:
1.7 Subd. 2e.Local optional revenue.(a) For fiscal years 2026 and 2027, the total local
1.8optional revenue allowance equals $724. For fiscal year 2028 and later, the total local
1.9optional revenue allowance equals the product of:
1.10 (1) $920; and
1.11 (2) the greater of one or the ratio of (i) the formula allowance under subdivision 2 for
1.12that fiscal year to (ii) the formula allowance under subdivision 2 for fiscal year 2028, rounded
1.13to the nearest whole dollar.
1.14The first tier local optional revenue allowance equals $300. The second tier local optional
1.15revenue allowance equals the total local optional revenue allowance minus the first tier
1.16local optional revenue allowance.
1.17 (a) (b) Local optional revenue for a school district equals the sum of the district's first
1.18tier local optional revenue and second tier local optional revenue. A district's first tier local
1.19optional revenue equals $300 the first tier local optional revenue allowance times the adjusted
1.20pupil units of the district for that school year. A district's second tier local optional revenue
1.21equals $424 the second tier local optional revenue allowance times the adjusted pupil units
1.22of the district for that school year.
1Section 1.
REVISOR CR/VJ 25-0277601/24/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2510
NINETY-FOURTH SESSION
Authored by Momanyi-Hiltsley and Rehrauer03/17/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1 (b) (c) A district's local optional levy equals the sum of the first tier local optional levy
2.2and the second tier local optional levy.
2.3 (c) (d) A district's first tier local optional levy equals the district's first tier local optional
2.4revenue times the lesser of one or the ratio of the district's referendum market value per
2.5resident pupil unit to $880,000.
2.6 (d) For fiscal year 2023, a district's second tier local optional levy equals the district's
2.7second tier local optional revenue times the lesser of one or the ratio of the district's
2.8referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's
2.9second tier local optional levy equals the district's second tier local optional revenue times
2.10the lesser of one or the ratio of the district's referendum market value per resident pupil unit
2.11to $510,000. (e) For fiscal year 2025, a district's second tier local optional levy equals the
2.12district's second tier local optional revenue times the lesser of one or the ratio of the district's
2.13referendum market value per resident pupil unit to $626,450. For fiscal year 2026, a district's
2.14second tier local optional levy equals the district's second tier local optional revenue times
2.15the lesser of one or the ratio of the district's referendum market value per resident pupil unit
2.16to $642,038. For fiscal year 2027 and later, a district's second tier local optional levy equals
2.17the district's second tier local optional revenue times the lesser of one or the ratio of the
2.18district's referendum market value per resident pupil unit to $671,345.
2.19 (e) (f) The local optional levy must be spread on referendum market value. A district
2.20may levy less than the permitted amount.
2.21 (f) (g) A district's local optional aid equals its local optional revenue minus its local
2.22optional levy. If a district's actual levy for first or second tier local optional revenue is less
2.23than its maximum levy limit for that tier, its aid must be proportionately reduced.
2.24 EFFECTIVE DATE.This section is effective July 1, 2025.
2Section 1.
REVISOR CR/VJ 25-0277601/24/25