Creating a general school aid penalty for increasing a school district's revenue limit by referendum and allowing school boards to rescind revenue limit increases that have been approved by referendum. (FE)

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Current law generally limits the total amount of revenue a school district may receive from general school aids and property taxes in a school year. However, there are several exceptions to the revenue limit. One exception is for excess revenue approved by referendum for recurring and nonrecurring purposes. This type of referendum is often referred to as an operating referendum. If the operating referendum is for a nonrecurring purpose, a school district's authority to raise excess revenue is approved only for specific school years. If the operating referendum is for a recurring purpose, the school district's authority to raise excess revenue is permanent.

Under this bill, a school district's general school aid payment is reduced by a percentage of the excess revenue approved by operating referenda. The reduction in general school aid is 20 percent of the excess revenue approved by operating referenda approved after the date of the bill. Under the bill, the question presented for an operating referendum must include an estimate of any reduction in general school aid that will occur if the referendum is approved. The bill also allows a school board to reduce its revenue limit by adopting a resolution to rescind a portion or all of its authority to raise excess revenue that has been granted under an operating referendum.

Who's behind it

2 senators are its authors⁠. All 2 are Republicans.

4 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DPI