HF5044

Purpose

• Establish seasonal tax base replacement aid for school districts.
• Change how general education aid is calculated by adding several targeted aid components and updating relevant statutes.

Main Provisions

• Seasonal tax base replacement aid: The bill creates a new aid type under the current statute (126C.17) to provide seasonal tax base replacement aid to school districts.

• General education aid formula update (for fiscal year 2015 and later): The bill amends Minnesota Statutes to redefine a district’s general education aid as the sum of:

  • base general education revenue (excluding operating capital revenue, equity revenue, local optional revenue, and transition revenue), plus
  • operating capital aid (per section 126C.10 subdivision 13b), plus
  • equity aid (per section 126C.10 subdivision 30), plus
  • transition aid (per section 126C.10 subdivision 33), plus
  • shared time aid (per section 126C.01 subdivision 7), plus
  • referendum aid (per sections 126C.17 subdivisions 7, 7a, and 7c), plus
  • online learning aid (per section 124D.096), plus
  • local optional aid (per section 126C.10 subdivision 2e paragraph f).

• Referenced funding categories: The provisions rely on existing definitions and formulas for operating capital aid, equity aid, transition aid, shared time aid, referendum aid, online learning aid, and local optional aid, integrating them into the general education aid calculation.

Significant Changes to Existing Law

• Adds a new subdivision to 126C.17 to provide seasonal tax base replacement aid.
• Amends 126C.13 subdivision 4 to strictly define the calculation of general education aid by combining multiple aid components into a single total for districts (for fiscal year 2015 and later), replacing or superseding prior standalone definitions for general education aid.
• Explicitly links several separate aid programs (operating capital, equity, transition, shared time, referendum, online learning, local optional) into the formula for general education aid, changing how districts receive funding in aggregate.

Practical Effect

• School districts’ general education funding will be determined by a broader, consolidated formula that includes multiple aid components rather than relying on a single revenue stream.
• Districts may see changes in funding volatility and predictability due to the incorporation of seasonal tax base replacement aid alongside established aid categories.

Terminology and Key Terms

• general education aid
• general education revenue
• operating capital aid
• equity aid
• transition aid
• shared time aid
• referendum aid
• online learning aid
• local optional aid
• seasonal tax base replacement aid
• Minnesota Statutes (126C.17, 126C.13, 126C.10, 126C.01, 124D.096)

Relevant Terms general education aid, general education revenue, operating capital aid, equity aid, transition aid, shared time aid, referendum aid, online learning aid, local optional aid, seasonal tax base replacement aid, 126C.17, 126C.13 subdivision 4, 126C.10 subdivision 13b, 126C.10 subdivision 30, 126C.10 subdivision 33, 126C.01 subdivision 7, 124D.096