Referendum levy equalizing factors increased, and money appropriated.

Minnesota House File 1988 (HF1988) is a bipartisan bill introduced on March 6, 2025, by Representatives Elliott Engen (R) and Matt Norris (D). The bill aims to increase the referendum levy equalizing factors, which are used to determine how much school districts can levy in property taxes to support education funding. Specifically, the bill proposes increasing the first-tier equalization factor from $567,000 to $1,500,000 and the second-tier equalization factor from $290,000 to $870,000. These changes are intended to provide greater state assistance to school districts with lower property wealth, thereby promoting more equitable education funding across the state. The bill also includes an appropriation of funds to support these adjustments.

Supporters of HF1988 argue that increasing the referendum levy equalizing factors will help level the playing field for school districts in areas with lower property values. By providing greater state assistance, these districts can generate more revenue for education without overburdening local taxpayers. Proponents believe this measure will lead to more equitable educational opportunities for students across Minnesota, regardless of their district's property wealth.

Critics of HF1988 express concerns about the potential financial impact on the state budget due to the increased appropriations required to support the higher equalization factors. They argue that while the intention to promote equity is commendable, the bill may place additional strain on state resources. Some opponents also question whether the proposed changes will effectively address disparities in education funding or if alternative solutions should be considered.