Student Opportunity Gaps

House Approves Extending Equity Revenue Increase to All Schools

By May 1, 2016 No Comments

The House Omnibus Education Bill extends the 25 percent increase in equity revenue to all school districts in the state.  This revenue is currently available only to school districts with their administrative offices located in the 7-county metropolitan area.  This increase is the only ongoing, widely-available, general fund increase in either the Senate or House Omnibus bills.

See how this could impact your school district

Current Equity Revenue Formula

  • Additional revenue for districts with Basic + Referendum Revenue per pupil unit below the regional 95th percentile (regions are seven county metro area, rural).
  • Minneapolis, St. Paul, and Duluth are not eligible for revenue, except as noted below for FY 2007 and later.
  • For qualifying districts with no referendum levy, the initial revenue allowance = $13.
  • For qualifying districts with a referendum levy, the initial revenue allowance = $13 + up to $75, depending on how far the district’s revenue per pupil unit is below the regional 95th percentile (sliding scale).
  • Districts with referendum revenue below 10 percent of the state average per pupil unit (approximately $87 / PU for FY 2012) receive additional equity revenue equal to the difference between 10 percent of the state average and the district’s referendum revenue per pupil unit (includes districts with no referendum).
  • For districts in the 7 county metro area, the equity revenue as computed above is increased by 25 percent.
  • All districts, (including Minneapolis, St. Paul, and Duluth), receive an additional $46 per pupil unit; (for FY 2007 only, districts at or above the 95th percentile received an additional $23 per pupil unit, while others received an additional $46 per pupil unit). (K-12 Education Finance Overview, 2011-12, MDE Program Finance, p. 22)