The bill amends Minnesota Statutes 2024, section 126C.10, subdivision 2e, to increase local optional revenue for school districts. It replaces the fixed dollar amounts for first and second tier local optional revenue with a new structure that ties these allowances to adjusted pupil units and the general education basic formula allowance. Specifically, the first tier local optional allowance will be set at $300 for fiscal years 2025 and 2026, increasing to $550 for fiscal year 2027, while the second tier local optional allowance will remain at $424 for fiscal years 2025 through 2027. The bill also introduces equalizing factors for both tiers, which will adjust based on the district's referendum market value per resident pupil unit.

Additionally, the bill appropriates funds from the general fund to the Department of Education for additional local optional aid, effective for revenue starting in fiscal year 2027 and later. The new legal language specifies the equalizing factors for both tiers, with the first tier set at $1,957,000 for fiscal year 2027, $2,270,000 for fiscal year 2028, and $2,347,000 for fiscal year 2029 and beyond. The second tier equalizing factors are set at $830,000 for fiscal year 2028 and $940,000 for fiscal year 2029 and later. This restructuring aims to provide more equitable funding for school districts based on their specific needs and market values.

Statutes affected:
Introduction: 126C.10