SF 2239

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/07/2025 10:05 a.m.

A bill for an act
relating to education finance; increasing local optional revenue for school districts;
appropriating money; amending Minnesota Statutes 2024, section 126C.10,
subdivision 2e.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read:

Subd. 2e.

Local optional revenue.

(a) Local optional revenue for a school district equals
the sum of the district's first tier local optional revenue and second tier local optional revenue.
a district's first tier local optional revenue equals deleted text begin $300 deleted text end new text begin the first tier local optional allowance new text end
times the adjusted pupil units of the district for that school year. A district's second tier local
optional revenue equals deleted text begin $424 deleted text end new text begin the second tier local optional allowance new text end times the adjusted
pupil units of the district for that school year.

new text begin (b) The first tier local optional allowance equals $300 for fiscal years 2025 and 2026,
and $550 for fiscal year 2027. For fiscal year 2028 and later, the first tier local optional
allowance equals the first tier local optional allowance for the previous year times the ratio
of the general education basic formula allowance for the current year to the general education
revenue basic formula allowance for the previous school year. The second tier local optional
allowance equals $424 for fiscal years 2025 through 2027. For fiscal year 2028 and later,
the second tier local optional allowance equals the second tier local optional allowance for
the previous year times the ratio of the general education basic formula allowance for the
current year to the general education revenue basic formula allowance for the previous
school year.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A district's local optional levy equals the sum of the first tier local optional levy
and the second tier local optional levy.

deleted text begin (c) deleted text end new text begin (d) new text end A district's first tier local optional levy equals the district's first tier local optional
revenue times the lesser of one or the ratio of the district's referendum market value per
resident pupil unit to new text begin the first tier local optional equalizing factor. For fiscal years 2025 and
2026, the first tier local optional equalizing factor is new text end $880,000. new text begin For fiscal year 2027, a
district's first tier local optional equalizing factor is $1,957,000. For fiscal year 2028, a
district's first tier local optional equalizing factor is $2,270,000. For fiscal year 2029 and
later, a district's first tier local optional equalizing factor is $2,347,000.
new text end

deleted text begin (d) For fiscal year 2023, a district's second tier local optional levy equals the district's
second tier local optional revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's
second tier local optional levy equals the district's second tier local optional revenue times
the lesser of one or the ratio of the district's referendum market value per resident pupil unit
to $510,000. For fiscal year 2025, deleted text end new text begin (e) new text end A district's second tier local optional levy equals the
district's second tier local optional revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to new text begin the second tier local optional equalizing
factor. For fiscal year 2025, the second tier local optional equalizing factor is new text end $626,450. For
fiscal year 2026, deleted text begin a district's deleted text end new text begin the new text end second tier local optional deleted text begin levy equals the district's second
tier local optional revenue times the lesser of one or the ratio of the district's referendum
market value per resident pupil unit to deleted text end new text begin equalizing factor is new text end $642,038. For fiscal year 2027
deleted text begin and later, a district's deleted text end new text begin , the new text end second tier local optional deleted text begin levy equals the district's second tier local
optional revenue times the lesser of one or the ratio of the district's referendum market value
per resident pupil unit to deleted text end new text begin equalizing factor is new text end $671,345 new text begin . For fiscal year 2028, the second tier
local optional equalizing factor is $830,000. For fiscal year 2029 and later, the second tier
local optional equalizing factor is $940,000 new text end .

deleted text begin (e) deleted text end new text begin (f) new text end The local optional levy must be spread on referendum market value. A district
may levy less than the permitted amount.

deleted text begin (f) deleted text end new text begin (g) new text end A district's local optional aid equals its local optional revenue minus its local
optional levy. If a district's actual levy for first or second tier local optional revenue is less
than its maximum levy limit for that tier, its aid must be proportionately reduced.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2027 and later.
new text end

Sec. 2. new text begin APPROPRIATION; GENERAL EDUCATION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sum indicated in this section is
appropriated from the general fund to the Department of Education in the fiscal year
designated.
new text end

new text begin Subd. 2. new text end

new text begin Additional local optional aid. new text end

new text begin For additional local optional aid under section
1:
new text end

new text begin $ new text end

new text begin ....... new text end

new text begin ..... new text end

new text begin 2027 new text end