SF 4144

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/05/2024 09:32am

A bill for an act
relating to education finance; increasing school district local optional revenue;
indexing the local optional revenue program to the formula allowance; amending
Minnesota Statutes 2023 Supplement, section 126C.10, subdivision 2e.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 126C.10, subdivision 2e, is
amended to read:

Subd. 2e.

Local optional revenue.

(a) new text begin For fiscal years 2024 and 2025, the total local
optional revenue allowance equals $724. For fiscal year 2026 and later, the total local
optional revenue allowance equals the product of:
new text end

new text begin (1) $920; and
new text end

new text begin (2) the greater of one or the ratio of (i) the formula allowance under subdivision 2 for
that fiscal year to (ii) the formula allowance under subdivision 2 for fiscal year 2026, rounded
to the nearest whole dollar.
new text end

new text begin The first tier local optional revenue allowance equals $300. The second tier local optional
revenue allowance equals the total local optional revenue allowance minus the first tier
local optional revenue allowance.
new text end

new text begin (b) new 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 deleted text begin $300 deleted text end new text begin the first tier local optional revenue 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 revenue allowance new text end times the adjusted pupil units
of the district for that school year.

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 $880,000.

deleted text begin (d) deleted text end new text begin (e) new 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, 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, 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 $587,244. For fiscal year 2026, 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 $642,038. For fiscal year 2027 and later, 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 $671,345.

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 July 1, 2024.
new text end