HF409

This Minnesota legislative bill focuses on education finance. It proposes adjustments to how much revenue school districts can generate locally through three capped allowances—a first, second, and third tier of optional revenue. Here's a breakdown of each part:

1. For fiscal year 2026 onwards, school districts can increase their local optional revenue through three different allowances:

   • First tier: This begins at $250 for fiscal year 2026 and will adjust annually based on the general education formula allowance.
   • Second tier: Set at $300.
   • Third tier: Set at $424.

2. The total local optional revenue for a district will be the sum of the revenues calculated from these three tiers based on the number of students (adjusted pupil units) in the district.

3. The bill also outlines formulas by which these tiers are levied against the district's referendum market value per pupil—which is a measure of property values within the district. The levies are determined by either a set value or a formula that considers changes in property values and student numbers.

4. Districts are permitted to levy less than the maximum amount allowed for each tier if they choose. The district’s local optional aid (state aid) will be adjusted based on actual levy amounts in comparison to maximum limits.

Overall, this bill aims to give school districts in Minnesota more flexibility and potential funding through local levies, adjusted annually based on relevant economic and educational formulas, while also allowing adjustments in state aid based on actual local efforts.