In addition to the revenues allowed by the state funding formula, school districts may receive additional revenues with a voter-approved local levy. There are two kinds of local referenda a school district can ask voters to support. A levy referendum provides money for learning; a bond referendum provides money for buildings (levy = learning; bond = building):

• "Excess" or "Operating" or "Levy" Referenda - Can be used for general fund purposes, capital improvements and/or operating expenses. Districts with operating referenda can be rewarded with additional state aid (Equity) and the state helps pay a portion of referenda levies for school districts located in areas of lesser property wealth (Equalization).
  
  
• Bond Referenda - Can be used for non-operating expenses such as computers, building remodeling, or new construction. This funding cannot be used for operating expenses.

In 1993, the Minnesota Legislature placed a cap on the amount that districts can raise through operating referenda (except for districts receiving sparsity revenues) because the amounts that can be raised by school districts vary substantially depending on the wealth and willingness of the communities they serve. The Referendum Revenue portion of the General Education Formula Allowance refers to the state aid portion provided to districts through the equalization calculation.

Additional Resources

How to Pass a Local Levy - Parents United.

Minnesota Property Taxes - Follow a simple three-step plan to see differences in net tax rates between taxing jurisdictions, University of Minnesota, Minnesota Land Economics Database (Related Article).

School District Referendum Elections - Frequently asked questions regarding the referendum process, House Research, Minnesota House of Representatives.

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January 2007 - A History of the School Operating Levy Referendum - Includes historical trends and legislative changes, Minnesota House of Representatives Fiscal Analysis Department.

March 2006 - Overview of Minnesota Property Tax System and School District Levy Process - Includes a summary of methods used to determine school district levy limitations, Minnesota Department of Education.

2006- 126C.17, Minnesota Statutes REFERENDUM REVENUE - Most of the law covering local levies, Minnesota Office of the Revisor of Statutes.