Local optional revenue increased for school districts with limited referendum revenue authority, and money appropriated.

HF 3371 modifies how Minnesota school districts with limited ability to raise funds through local property taxes calculate their local optional revenue. It adds a third tier of revenue based on the district's adjusted pupil units and the difference between $100 and their current operating referendum revenue per student, capped at a property value of $880,000 per student. The bill increases funding for these districts starting in fiscal year 2027, with the state appropriating funds from the general fund to cover the cost. This change directly affects school districts that cannot generate sufficient revenue through regular local tax votes, providing them with additional state-supported funding.