Local optional revenue program renaming and funding increase

SF 3945 renames Minnesota's "Local Optional Revenue Program" to the "Local Education Revenue Program" and increases its funding. It changes how school districts calculate local revenue by introducing a "geographic cost index" based on regional wage data from the Minnesota Department of Employment and Economic Development. The base allowance rises to $979 for fiscal year 2027, with annual adjustments tied to the state's general education formula, while capping second-tier local levies at $671,345 starting in 2027. This directly affects all Minnesota public school districts by altering their state revenue calculations beginning in 2027.