SF 866

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/16/2023 02:56pm

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:

Section 1.

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

Subd. 2e.

Local optional revenue.

(a) For fiscal year deleted text begin 2021 and later deleted text end new text begin 2023 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
$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. new text begin For fiscal year 2024 and later, a district's local optional revenue equals the local
optional allowance times the district's adjusted pupil units for that school year.
new text end

(b) For fiscal deleted text begin year 2021 and later deleted text end new text begin years 2023 and 2024 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.

(c) new text begin For fiscal years 2023 and 2024, new text end a district's first tier local optional levy equals new text begin the
product of $300, new text end the district's deleted text begin first tier local optional revenue times deleted text end new text begin pupil units for the
respective year, and new text end the lesser of one or the ratio of the district's referendum market value
per resident pupil unit new text begin for that year new text end 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. new text begin For fiscal year 2024, a district's second tier optional levy equals the product
of $424, the district's pupil units for that year, and the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $510,000.
new text end

new text begin (e) new text end For fiscal year 2024 and later, a district's deleted text begin second tier deleted text end local optional levy equals the
district's deleted text begin second tier deleted text end 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 begin $510,000 deleted text end new text begin $880,000 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 deleted text begin first or second tier deleted text end new text begin its new text end local optional revenue is
less than its maximum levy limit for that tier, its aid must be proportionately reduced.

new text begin (h) The local optional allowance for fiscal year 2024 equals $840. The local optional
revenue for fiscal year 2025 and later equals the local optional revenue allowance for the
previous year times the ratio of the general education basic formula allowance for the current
year to the general education basic formula allowance for the previous year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2024 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