1.1 A bill for an act
1.2 relating to education finance; increasing local optional revenue; increasing the aid
1.3 amount; appropriating money; amending Minnesota Statutes 2024, section 126C.10,
1.4 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) A school district's first tier local optional allowance
1.8for fiscal year 2026 equals $250. For fiscal year 2027 and later, the first tier local optional
1.9allowance equals:
1.10 (1) the sum of the local optional allowances for the previous year times the ratio of the
1.11general education basic formula allowance for the current year to the general education
1.12basic formula allowance for the previous year; less
1.13 (2) $724.
1.14 (b) For fiscal year 2026 and later, a district's second tier local optional allowance equals
1.15$300.
1.16 (c) For fiscal year 2026 and later, a district's third tier local optional allowance equals
1.17$424.
1.18 (d) Local optional revenue for a school district equals the sum of the district's first tier
1.19local optional revenue and, second tier local optional revenue, and third tier local optional
1.20revenue. A district's first tier local optional revenue equals $300 the first tier local optional
1.21allowance times the adjusted pupil units of the district for that school year. A district's
1.22second tier local optional revenue equals the second tier local optional allowance times the
1Section 1.
REVISOR CR/DG 25-0158712/20/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 409
NINETY-FOURTH SESSION
Authored by Myers and Bakeberg02/13/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1adjusted pupil units of the district for that school year. A district's second third tier local
2.2optional revenue equals $424 the third tier local optional allowance times the adjusted pupil
2.3units of the district for that school year.
2.4 (b) (e) A district's local optional levy equals the sum of the first second tier local optional
2.5levy and the second third tier local optional levy.
2.6 (c) (f) A district's first second tier local optional levy equals the district's first second
2.7tier local optional revenue times the lesser of one or the ratio of the district's referendum
2.8market value per resident pupil unit to $880,000.
2.9 (d) For fiscal year 2023, a district's second tier local optional levy equals the district's
2.10second tier local optional revenue times the lesser of one or the ratio of the district's
2.11referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's
2.12second tier local optional levy equals the district's second tier local optional revenue times
2.13the lesser of one or the ratio of the district's referendum market value per resident pupil unit
2.14to $510,000. (g) For fiscal year 2025, a district's second third tier local optional levy equals
2.15the district's second third tier local optional revenue times the lesser of one or the ratio of
2.16the district's referendum market value per resident pupil unit to $626,450. For fiscal year
2.172026, a district's second third tier local optional levy equals the district's second third tier
2.18local optional revenue times the lesser of one or the ratio of the district's referendum market
2.19value per resident pupil unit to $642,038. For fiscal year 2027 and later, a district's second
2.20third tier local optional levy equals the district's second third tier local optional revenue
2.21times the lesser of one or the ratio of the district's referendum market value per resident
2.22pupil unit to $671,345.
2.23 (e) (h) The local optional levy must be spread on referendum market value. A district
2.24may levy less than the permitted amount.
2.25 (f) (i) A district's local optional aid equals its local optional revenue minus its local
2.26optional levy. If a district's actual levy for first or second or third tier local optional revenue
2.27is less than its maximum levy limit for that tier, its aid must be proportionately reduced.
2.28 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.
2.29 Sec. 2. APPROPRIATION; GENERAL EDUCATION AID.
2.30 Subdivision 1.Department of Education.The sums indicated in this section are
2.31appropriated from the general fund to the Department of Education in the fiscal years
2.32designated.
2Sec. 2.
REVISOR CR/DG 25-0158712/20/24 3.1 Subd. 2.Additional general education aid.For additional general education aid required
3.2under this act:
2026............3.3 $
2027............3.4 $
3Sec. 2.
REVISOR CR/DG 25-0158712/20/24