This bill amends Minnesota Statutes 2024, section 127A.49, subdivision 3, to clarify the adjustments to school district aid and levy limitations when a tax increment finance excess is received. Specifically, it outlines the process for adjusting a school district's aid for the fiscal year in which the excess tax increment is paid. The bill stipulates that an amount equal to the product of the excess tax increment payment and a specific ratio must be subtracted from the district's aid. Additionally, it specifies that the school district's levy limitation must also be adjusted based on the distribution of the excess increment.

Notably, the bill replaces the reference to section 123B.57, which pertains to health and safety, with section 123B.595, which relates to long-term facilities maintenance. This change is part of a broader framework that includes various sections of the law that affect school district funding, ensuring that the adjustments are accurately calculated based on the district's certified levy and other relevant factors. The bill also establishes that these adjustments only apply to excess increments exceeding $25,000 received by a district in a calendar year.

Statutes affected:
Introduction: 127A.49