1.1 A bill for an act
1.2 relating to education finance; authorizing the board of a consolidated school district
1.3 to renew an expiring referendum established pursuant to the consolidation;
1.4 clarifying the requirements for school board renewal of an expiring referendum;
1.5 amending Minnesota Statutes 2024, sections 123A.73, subdivisions 4, 5; 126C.17,
1.6 subdivision 9b.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 123A.73, subdivision 4, is amended to read:
1.9 Subd. 4.Consolidation; maximum authorized referendum revenues.(a) As of the
1.10effective date of a consolidation pursuant to section 123A.48, if the plan for consolidation
1.11so provides, or if the plan for consolidation makes no provision concerning referendum
1.12revenues, the authorization for all referendum revenues previously approved by the voters
1.13of all affected districts for those districts pursuant to section 126C.17, subdivision 9, or its
1.14predecessor provision shall be recalculated as provided in this subdivision. The referendum
1.15revenue authorization for the newly created district shall be the revenue per adjusted pupil
1.16unit that would raise an amount equal to the combined dollar amount of the referendum
1.17revenues authorized by each of the component districts for the year preceding the
1.18consolidation, unless the referendum revenue authorization of the newly created district is
1.19subsequently modified pursuant to section 126C.17, subdivision 9.
1.20 (b) The referendum allowance for a consolidated district in the years following
1.21consolidation equals the average of the consolidating districts' existing authorities for those
1.22years, weighted by the districts' adjusted pupil units in the year preceding consolidation.
1.23For purposes of this calculation, the referendum authorities used for individual districts
1.24shall not decrease from year to year until such time as all existing authorities for all the
1Section 1.
REVISOR CR/AC 25-0519003/24/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2944
NINETY-FOURTH SESSION
Authored by Warwas04/01/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1consolidating districts have fully expired, but shall increase if they were originally approved
2.2with consumer price index-based or other annual increases.
2.3 (c) The referendum revenue authorization for the newly created district shall continue
2.4for a period of time equal to the longest period authorized for any component district. The
2.5referendum revenue authorization for the newly created district may be renewed by the
2.6school board of the newly created district pursuant to section 126C.17, subdivision 9b, for
2.7a term not to exceed ten years, without regard to the terms of the previous authorizations
2.8prior to consolidation.
2.9 EFFECTIVE DATE.This section is effective retroactively from June 16, 2024, and
2.10applies to school board resolutions adopted on or after that date.
2.11 Sec. 2. Minnesota Statutes 2024, section 123A.73, subdivision 5, is amended to read:
2.12 Subd. 5.Alternative method.(a) As of the effective date of a consolidation pursuant
2.13to section 123A.48, if the plan for consolidation so provides, the authorization for all
2.14referendum revenues previously approved by the voters of all affected districts for those
2.15districts pursuant to section 126C.17, subdivision 9, or its predecessor provision shall be
2.16combined as provided in this subdivision. The referendum revenue authorization for the
2.17newly created district may be any allowance per adjusted pupil unit provided in the plan
2.18for consolidation, but may not exceed the allowance per adjusted pupil unit that would raise
2.19an amount equal to the combined dollar amount of the referendum revenues authorized by
2.20each of the component districts for the year preceding the consolidation.
2.21 (b) The referendum allowance for a consolidated district in the years following
2.22consolidation equals the average of the consolidating districts' existing authorities for those
2.23years, weighted by the districts' adjusted pupil units in the year preceding consolidation.
2.24For purposes of this calculation, the referendum authorities used for individual districts
2.25shall not decrease from year to year until such time as all existing authorities for all the
2.26consolidating districts have fully expired, but shall increase if they were originally approved
2.27with consumer price index-based or other annual increases.
2.28 (c) The referendum revenue authorization for the newly created district shall continue
2.29for a period of time equal to the longest period authorized for any component district. The
2.30referendum revenue authorization for the newly created district may be modified pursuant
2.31to section 126C.17, subdivision 9. The referendum revenue authorization for the newly
2.32created district may be renewed by the school board of the newly created district pursuant
2.33to section 126C.17, subdivision 9b, for a term not to exceed ten years, without regard to the
2.34terms of the previous authorizations prior to consolidation.
2Sec. 2.
REVISOR CR/AC 25-0519003/24/25 3.1 EFFECTIVE DATE.This section is effective retroactively from June 16, 2024, and
3.2applies to school board resolutions adopted on or after that date.
3.3 Sec. 3. Minnesota Statutes 2024, section 126C.17, subdivision 9b, is amended to read:
3.4 Subd. 9b.Renewal by school board.(a) Notwithstanding the election requirements of
3.5subdivision 9, a school board may renew an expiring referendum, including an expiring
3.6referendum that was approved or adopted under section 123A.73, subdivision 4 or 5, by
3.7board action if:
3.8 (1) the per pupil amount of the referendum is the same as the amount expiring, or for
3.9an expiring referendum that was adjusted annually by the rate of inflation, the same as the
3.10per pupil amount of the expiring referendum, adjusted annually for inflation in the same
3.11manner as if the expiring referendum had continued;
3.12 (2) the term of the renewed referendum is no longer than the initial term approved by
3.13the voters, except as provided under section 123A.75, subdivision 4 or 5;
3.14 (3) the school board, having taken a recorded vote, has adopted a written resolution
3.15authorizing the renewal after holding a meeting and allowing public testimony on the
3.16proposed renewal; and
3.17 (4) the expiring referendum has not been previously renewed under this subdivision.
3.18 (b) The resolution must be adopted by the school board by on or after July 1 of the
3.19second fiscal year prior to the fiscal year in which the referendum expires, but no later than
3.20June 15 of any calendar year and the fiscal year prior to the fiscal year in which the
3.21referendum expires. The resolution becomes effective 60 days after its adoption.
3.22 (c) A referendum expires in the last fiscal year in which the referendum generates revenue
3.23for the school district. A school board may renew an expiring referendum under this
3.24subdivision not more than two fiscal years before the referendum expires.
3.25 (d) A district renewing an expiring referendum under this subdivision must submit a
3.26copy of the adopted resolution to the commissioner and to the county auditor no later than
3.27September 1 August 15 of the calendar year in which the written resolution is adopted fiscal
3.28year in which the referendum expires.
3.29 EFFECTIVE DATE.This section is effective retroactively from June 16, 2024, and
3.30applies to school board resolutions adopted on or after that date.
3Sec. 3.
REVISOR CR/AC 25-0519003/24/25