This bill amends Minnesota Statutes related to education finance by reducing referendum allowances and increasing local optional revenue authority for school districts. Specifically, it modifies the calculation of local optional revenue, establishing that for fiscal years 2025 and 2026, a district's first tier local optional revenue will be based on $400 times the adjusted pupil units. Additionally, the second tier local optional levy will be adjusted to reflect new thresholds for fiscal years 2026 and 2027, with the maximum ratios changing to $642,038 and $671,345, respectively. The bill also revises the initial referendum allowance for fiscal year 2027, reducing it by $100 and ensuring that the allowance cannot be less than zero.

Furthermore, the bill includes appropriations from the general fund to the Department of Education for general education aid, specifying amounts for fiscal years 2025, 2026, and 2027. The changes aim to provide more local revenue authority while adjusting the parameters for referendum allowances, thereby impacting how school districts can fund their operations in the coming years. The effective date for these changes is set for revenue starting in fiscal year 2027 and later.

Statutes affected:
Introduction: 126C.10, 126C.17