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SF3163 (Legislative Session 94 (2025-2026))

Board of a consolidated school district renewal of an expiring referendum established pursuant to the consolidation authorization; requirements for school board renewal of an expiring referendum clarification

Related bill: HF2944

AI Generated Summary

Purpose of the Bill

This bill is designed to adjust and clarify the processes by which a consolidated school district in Minnesota can renew an expiring referendum that was originally established during their consolidation. It aims to streamline how school districts manage and authorize their referendum revenues post-consolidation.

Main Provisions

  • Renewal of Expiring Referendum: The bill allows the school board of a consolidated district to renew an expiring referendum for up to ten years. This renewal can occur without being restricted by the terms of the previous authorizations before the districts were consolidated.

  • Referendum Revenue Calculation: When districts consolidate, the referendum revenue for the newly formed district is calculated by combining the referendum revenues of the previously separate districts. This calculation must reflect the revenue per adjusted pupil unit, drawing from the combined dollar amounts approved by each district prior to consolidation.

  • Continuation and Modification of Revenue: The newly created district's authorization for referendum revenue remains in effect for the duration authorized in any of the component districts before consolidation. However, it can be renewed as specified without needing to adhere to the terms before the districts merged.

Significant Changes to Existing Law

  • Calculation Method for Revenue Authorization: The adjusted method allows for a strategic combination of existing referendum authorities with weighted averages based on adjusted pupil units. There will no longer be decreases in these authorities from year to year unless they naturally expire, though they can increase if linked to annual indices or cost adjustments.

  • Extended Authorization Period: The bill permits renewal of referendum revenues by the school board for periods not exceeding ten years, thus changing the flexibility districts have to manage finances and ensuring continuity in funding without needing constant voter re-approval.

Relevant Terms

  • Education finance
  • Consolidated school district
  • Referendum renewal
  • Adjusted pupil unit
  • Referendum revenue authorization
  • School board

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies terms for renewal of referendum revenues by school board post-consolidation."
      ],
      "removed": [],
      "summary": "This bill relates to education finance and modifies rules for consolidation maximum authorized referendum revenues under section 123A.73.",
      "modified": [
        "Changes the formula for calculating referendum revenues after school district consolidations."
      ]
    },
    "citation": "123A.73",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is referenced in relation to recalculating referendum revenues and renewal terms.",
      "modified": [
        "References adjustments in the calculation of revenue per pupil unit during district consolidation."
      ]
    },
    "citation": "126C.17",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This addresses the ability for a school board to renew a referendum revenue authorization for a consolidated district.",
      "modified": [
        "Allows renewal for a period not to exceed ten years, irrespective of previous authorization terms prior to consolidation."
      ]
    },
    "citation": "126C.17",
    "subdivision": "subdivision 9b"
  }
]

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