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HF 879

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 03:43pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to education finance; increasing local optional revenue; linking future
increases in local optional revenue to the growth in the general education basic
formula allowance; appropriating money; amending Minnesota Statutes 2022,
section 126C.10, subdivision 2e.

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

Sec. 1.

Minnesota Statutes 2022, section 126C.10, subdivision 2e, is amended to read:


Subd. 2e.

Local optional revenue.

(a) For fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2021 deleted text begin and laterdeleted text end new text begin through 2024new text end ,
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 $300 times the adjusted pupil units of the district for that school year. A
district's second tier local optional revenue equals $424 times the adjusted pupil units of
the district for that school year.

(b) For fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2021 deleted text begin and laterdeleted text end new text begin through 2024new 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.

(c) new text begin For fiscal years 2023 and 2024, 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 $880,000.

(d) deleted text begin For fiscal year 2022, 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.
deleted text end 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 deleted text begin and laterdeleted 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 $510,000.

new text begin (e) For fiscal year 2025, a district's local optional revenue allowance equals $840. For
fiscal year 2026 and later, a district's local optional revenue allowance equals the local
optional revenue allowance for the previous year times the ratio of the basic formula
allowance for the current year to the basic formula allowance for the previous year.
new text end

new text begin (f) For fiscal years 2025 and later, a district's local optional revenue equals the local
optional revenue allowance for that year times the district's adjusted pupil units for that
year.
new text end

new text begin (g) For fiscal years 2025 and later, a district's local optional levy equals the district's
local optional revenue times the lesser of one or the ratio of the district's referendum market
value per resident pupil unit to $957,000.
new text end

deleted text begin (e)deleted text end new text begin (h)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 (i)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 2025 and later.
new text end

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

new text begin $....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general
fund to the Department of Education for additional general education aid required under
section 1.
new text end