HF2944

Purpose of the Bill

The purpose of this bill is to address the financial aspects of school district consolidation in Minnesota. Specifically, it aims to authorize and clarify the process by which a consolidated school district can renew an expiring referendum related to school funding.

Main Provisions

• Renewal Authorization: The bill provides the board of a newly consolidated school district with the authority to renew an expiring school funding referendum. This allows the funding method used before the consolidation to continue without interruption.

• Clarification of Renewal Process: It clarifies how the school board can renew a referendum for up to ten years, irrespective of the duration specified in the referendums prior to the consolidation.

• Calculation of Revenue Authorization: The bill defines how funding should be calculated after consolidation, stating that the newly formed district will have authorization amounts equal to the combined previous amounts of each individual district. It considers both the average of previous authorities and potential adjustments for inflation or annually increasing amounts.

Significant Changes to Existing Law

• The bill amends existing statutes to clearly allow renewals of expiring referenda by a consolidated district's school board without needing a new voter approval.

• It alters how referendum revenue is calculated and continued post-consolidation, taking into account the previous authorities of the individual districts and allowing these to remain unaffected by year-to-year decreases until they fully expire.

Relevant Terms

consolidated school district, referendum renewal, school funding, education finance, district consolidation, referendum revenue, consumer price index-based increases, Minnesota Statutes 2024.