Local optional revenue increase for school districts with limited referendum revenue authority

A bill for an act

relating to education finance; increasing local optional revenue for school districts

with limited referendum revenue authority; 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
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, second, and third
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tier
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of
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local optional revenue
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and second tier

local optional revenue
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. A district's first tier
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of
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local optional revenue equals $300 times the

adjusted pupil units of the district for that school year. A district's second tier
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of
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local optional

revenue equals $424 times the adjusted pupil units of the district for that school year.
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A

district's third tier of local optional revenue equals the greater of zero or the product of the

district's adjusted pupil units for that year times the difference between $100 and the district's

operating referendum revenue per adjusted pupil unit for that year.
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(b) A district's local optional levy equals the sum of
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the
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its
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first
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, second, and third
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tier
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of
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local optional levy
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and the second tier local optional levy
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.

(c) A district's first tier
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of
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local optional levy equals the district's first tier
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of
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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)
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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.
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For fiscal year 2025, a district's second tier
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of
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local optional levy equals the

district's second tier
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of
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local optional 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 second tier
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of
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local optional levy equals the district's second tier
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of
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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
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of
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local

optional levy equals the district's second tier
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of
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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.

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(e) A district's third tier of local optional levy equals the district's third tier of 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.

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(e)
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(f)
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The local optional levy must be spread on referendum market value. A district

may levy less than the permitted amount.

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(f)
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(g)
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A district's local optional aid equals its local optional revenue minus its local

optional levy. If a district's actual levy for first
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or
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,
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second
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, or third
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tier
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of
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local optional

revenue is less than its maximum levy limit for that tier, its aid must be proportionately

reduced.

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EFFECTIVE DATE.

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This section is effective for revenue for fiscal year 2027 and later.

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Sec. 2.
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APPROPRIATION.
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Subdivision 1.

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Department of Education.

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The sum indicated in this section is

appropriated from the general fund to the Department of Education in the fiscal year

designated.

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Subd. 2.

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Additional general education aid.

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For additional general education aid required

for increasing local optional revenue under section 1:

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$

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.......

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.....

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2027

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