SF2239

This bill, Minnesota Senate File No. 2239, proposes increasing local optional revenue for school districts by amending Minnesota Statutes 2024, section 126C.10, subdivision 2e. The key provisions include:

• Adjustments to the first tier local optional allowance, increasing from $300 per pupil unit in fiscal years 2025 and 2026 to $550 in fiscal year 2027, with future increases indexed to the general education basic formula.
• Adjustments to the second tier local optional allowance, which will remain $424 per pupil unit through fiscal year 2027 and then be indexed to the general education basic formula from fiscal year 2028 onward.
• Changes to the equalizing factors that determine how much of the local optional revenue is funded through local levies versus state aid. The bill raises these equalizing factors gradually from fiscal years 2025 through 2029.
• School districts may levy less than the permitted amount, and state aid is adjusted if actual levies fall below the maximum allowed.

Purpose:

The bill seeks to increase education funding flexibility for school districts by providing additional local revenue options, helping them adjust to changing budget needs. It also ensures more equitable funding across districts by modifying how local levies and equalization aid are calculated.

Status:

• Introduced on March 6, 2025.
• Referred to the Education Finance Committee for review.

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