Purpose of the Bill

The purpose of this bill is to adjust the way in which education funding is calculated and distributed among school districts in Minnesota. Specifically, it aims to increase the "referendum levy equalizing factors," which are used to determine how much support school districts receive from state funds based on local property values.

Main Provisions

• Referendum Equalization Levy: The bill modifies the existing formula for calculating a district's referendum equalization levy. The levy is divided into two tiers: the first tier and the second tier.

• First Tier Levy Adjustment: The bill proposes changing the formula for the first tier referendum equalization levy by adjusting the ratio of a district's market value per pupil. The cap of this ratio is proposed to change from 567,000 to 1,500,000.

• Second Tier Levy Adjustment: For the second tier, the bill outlines an adjustment to increase the cap from 290,000 to 870,000 in the formula used to assess a district's market value per pupil.

Significant Changes to Existing Law

This bill significantly increases the maximum thresholds for both the first and second tier referendum levy calculations. These changes would potentially increase the amount of state funding that can be allocated to districts with lower property values, aiming to create a more balanced financial support system across diverse economic areas. The modifications reflect an intent to ensure that districts have better financial equality and resource distribution for educational purposes.

Relevant Terms

• Education finance
• Referendum levy
• Equalization levy
• Property values
• Pupil unit