Minnesota Legislature
HF 2388
as introduced - 94th Legislature (2025 - 2026) Posted on 03/17/2025 02:59pm
Bill Text Versions
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| Introduction | Posted on 03/14/2025 |
Current Version - as introduced
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A bill for an act
relating to education finance; replacing local optional aid and levy with basic
supplemental revenue; increasing the basic supplemental aid amount; appropriating
money; amending Minnesota Statutes 2024, sections 124E.20, subdivision 1;
126C.10, subdivisions 1, 2e; 126C.13, subdivision 4; 126C.17, subdivisions 7a,
7b.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 124E.20, subdivision 1, is amended to read:
Subdivision 1.
Revenue calculation.
(a) General education revenue must be paid to a
charter school as though it were a district. The general education revenue for each adjusted
pupil unit is the state average general education revenue per pupil unit, plus the referendum
equalization aid allowance and new text begin the new text end firstnew text begin and secondnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end
aid deleted text begin allowancedeleted text end new text begin allowancesnew text end in the pupil's district of residence, minus an amount equal to the
product of the formula allowance according to section 126C.10, subdivision 2, times .0466,
calculated without declining enrollment revenue, deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end revenue,
basic skills revenue, extended time revenue, pension adjustment revenue, transition revenue,
and transportation sparsity revenue, plus declining enrollment revenue, basic skills revenue,
pension adjustment revenue, and transition revenue as though the school were a school
district.
(b) For a charter school operating an extended day, extended week, or summer program,
the general education revenue in paragraph (a) is increased by an amount equal to 25 percent
of the statewide average extended time revenue per adjusted pupil unit.
(c) Notwithstanding paragraph (a), the general education revenue for an eligible special
education charter school as defined in section 124E.21, subdivision 2, equals the sum of
the amount determined under paragraph (a) and the school's unreimbursed cost as defined
in section 124E.21, subdivision 2, for educating students not eligible for special education
services.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2026 and later.
new text end
Sec. 2.
Minnesota Statutes 2024, section 126C.10, subdivision 1, is amended to read:
Subdivision 1.
General education revenue.
The general education revenue for each
district equals the sum of the district's basic revenue, extended time revenue, gifted and
talented revenue, declining enrollment revenue, deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end revenue,
small schools revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
pension adjustment revenue, and transition revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2026 and later.
new text end
Sec. 3.
Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read:
Subd. 2e.
deleted text begin Local optionaldeleted text end new text begin Basic supplementalnew text end revenue.
(a) deleted text begin Local optionaldeleted text end new text begin Basic
supplementalnew text end revenue for a school district equals the sum of the district's first tier deleted text begin local
optionaldeleted text end new text begin basic supplementalnew text end revenue deleted text begin anddeleted text end new text begin ,new text end second tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end
revenuenew text begin , and third tier basic supplemental revenuenew text end . A district's first tier deleted text begin local optionaldeleted text end new text begin basic
supplementalnew text end revenue equalsnew text begin $100 times the adjusted pupil units of the district for that
school year. A district's second tier basic supplemental revenue equalsnew text end $300 times the
adjusted pupil units of the district for that school year. A district's deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local
optionaldeleted text end new text begin basic supplementalnew text end revenue equals $424 times the adjusted pupil units of the district
for that school year.
(b) A district's deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy equals the sum of the deleted text begin firstdeleted text end new text begin secondnew text end
tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy and the deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local optionaldeleted text end new text begin basic
supplementalnew text end levy.
(c) A district's deleted text begin firstdeleted text end new text begin secondnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy equals the district's
deleted text begin firstdeleted text end new text begin secondnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end 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 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.deleted text end For fiscal year 2025, a district's deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local optionaldeleted text end new text begin basic
supplementalnew text end levy equals the district's deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end
revenue times the lesser of one or the ratio of the district's referendum market value per
resident pupil unit to $626,450. For fiscal year 2026, a district's deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local
optionaldeleted text end new text begin basic supplementalnew text end levy equals the district's deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local optionaldeleted text end new text begin basic
supplementalnew text end 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 deleted text begin seconddeleted text end new text begin
thirdnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy equals the district's deleted text begin seconddeleted text end new text begin thirdnew text end tier deleted text begin local
optionaldeleted text end new text begin basic supplementalnew text end revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $671,345.
(e) The deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy must be spread on referendum market
value. A district may levy less than the permitted amount.
(f) A district's deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end aid equals its deleted text begin local optionaldeleted text end new text begin basic
supplementalnew text end revenue minus its deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy. If a district's actual
levy for deleted text begin first ordeleted text end second tier deleted text begin local optionaldeleted text end new text begin or third tier basic supplementalnew text end 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 2026 and later.
new text end
Sec. 4.
Minnesota Statutes 2024, section 126C.13, subdivision 4, is amended to read:
Subd. 4.
General education aid.
deleted text begin For fiscal year 2015 and later,deleted text end A district's general
education aid equals:
(1) general education revenue, excluding operating capital revenue, equity revenue, deleted text begin local
optionaldeleted text end new text begin basic supplementalnew text end revenue, and transition revenue; plus
(2) operating capital aid under section 126C.10, subdivision 13b;
(3) equity aid under section 126C.10, subdivision 30; plus
(4) transition aid under section 126C.10, subdivision 33; plus
(5) shared time aid under section 126C.01, subdivision 7; plus
(6) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
(7) online learning aid under section 124D.096; plus
(8) deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end aid according to section 126C.10, subdivision 2e,
paragraph (f).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2026 and later.
new text end
Sec. 5.
Minnesota Statutes 2024, section 126C.17, subdivision 7a, is amended to read:
Subd. 7a.
Referendum tax base replacement aid.
For each school district that had a
referendum allowance for fiscal year 2002 exceeding $415, for each separately authorized
referendum levy, the commissioner of revenue, in consultation with the commissioner of
education, shall certify the amount of the referendum levy in taxes payable year 2001
attributable to the portion of the referendum allowance exceeding $415 levied against
property classified as class 2, noncommercial 4c(1), or 4c(4), under section 273.13, excluding
the portion of the tax paid by the portion of class 2a property consisting of the house, garage,
and surrounding one acre of land. The resulting amount must be used to reduce the district's
referendum levy or deleted text begin firstdeleted text end new text begin secondnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end levy amount otherwise
determined, and must be paid to the district each year that the referendum or deleted text begin firstdeleted text end new text begin secondnew text end
tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end authority remains in effect, is renewed, or new
referendum authority is approved. The aid payable under this subdivision must be subtracted
from the district's referendum equalization aid under subdivision 7. The referendum
equalization aid and the deleted text begin firstdeleted text end new text begin secondnew text end tier deleted text begin local optionaldeleted text end new text begin basic supplementalnew text end aid after the
subtraction must not be less than zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2026 and later.
new text end
Sec. 6.
Minnesota Statutes 2024, section 126C.17, subdivision 7b, is amended to read:
Subd. 7b.
Referendum aid guarantee.
deleted text begin
(a) Notwithstanding subdivision 7, the sum of
a district's referendum equalization aid and local optional aid under section 126C.10,
subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
equalization aid the district would have received for fiscal year 2015 under Minnesota
Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a),
(b), and (c).
deleted text end
deleted text begin (b)deleted text end Notwithstanding subdivision 7, the sum of referendum equalization aid and deleted text begin local
optionaldeleted text end new text begin basic supplementalnew text end aid under section 126C.10, subdivision 2e, deleted text begin for fiscal year 2016
and later,deleted text end for a district qualifying for additional aid under new text begin Minnesota Statutes 2014, section
126C.10, subdivision 2e, new text end paragraph (a)new text begin ,new text end for fiscal year 2015, must not be less than the product
of (1) the sum of the district's referendum equalization aid and local optional aid under
new text begin Minnesota Statutes 2014, new text end section 126C.10, subdivision 2e, for fiscal year 2015, times (2)
the lesser of one or the ratio of the sum of the district's referendum revenue and deleted text begin local optionaldeleted text end new text begin
basic supplementalnew text end revenue for that school year to the sum of the district's referendum
revenue and local optional revenue for fiscal year 2015, times (3) the lesser of one or the
ratio of the district's referendum market value used for fiscal year 2015 referendum
equalization calculations to the district's referendum market value used for that year's
referendum equalization calculations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2026 and later.
new text end
Sec. 7. new text begin APPROPRIATIONS; 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 sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal years
designated.
new text end
new text begin Subd. 2. new text end
new text begin Additional general education aid. new text end
new text begin
For additional general education aid required
under this act:
new text end
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$ new text end |
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new text begin
2026 new text end |
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$ new text end |
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new text begin
2027 new text end |
Sec. 8. new text begin REVISOR INSTRUCTION.
new text end
new text begin
The revisor of statutes shall replace "local optional revenue," "local optional aid," and
"local optional levy" with "basic supplemental revenue," "basic supplemental aid," and
"basic supplemental levy" and correct all cross-references.
new text end