MN SF866

Starting in fiscal year 2024, school districts' local optional revenue is calculated as a single local optional allowance ($840 for FY2024) multiplied by adjusted pupil units, replacing the previous two-tier system.

Future increases in local optional revenue for fiscal year 2025 and later are linked to growth in the general education basic formula allowance rather than fixed at previous levels.

For fiscal years 2023 and 2024, first tier local optional levy is calculated as $300 times pupil units times the lesser of one or the ratio of referendum market value per resident pupil unit to $880,000.

For fiscal year 2024 and later, second tier local optional levy equals the local optional revenue times the lesser of one or the ratio of referendum market value per resident pupil unit to $880,000.

General fund appropriations for fiscal years 2024 and 2025 are authorized for the Department of Education to provide additional general education aid required by this change in local optional revenue calculations.