S.F. No. 4184 - Education Finance Bill Summary

• Consolidates local optional revenue into a single tier at $920 per adjusted pupil unit beginning fiscal year 2025, simplifying the previous two-tier system of $300 and $424.

• Includes school district unemployment insurance costs and paid family and medical leave expenses (required under chapter 268B) in local optional revenue calculations beginning fiscal year 2026.

• Simplifies referendum revenue structure by consolidating first and second tier referendum equalization revenue into a single calculation based on district referendum allowance times adjusted pupil units, effective fiscal year 2026.

• Modifies referendum allowance calculation to begin with fiscal year 2025 allowance plus new amounts approved after January 1, 2024, and inflationary increases, with reductions for expiring amounts, effective fiscal year 2026.

• Repeals separate unemployment aid account (section 124D.995) and unequalized referendum levy authority (section 126C.17, subdivision 8) for fiscal year 2026 and later; appropriates general education aid with amount for 2025 to be determined.