Student Opportunity Gaps一 Maps on Issues

LOR Equalization Leaves Out Poorest Districts

By March 18, 2015 No Comments

The equalization of Local Optional Revenue does not reach some of the poorest school districts in the state. The property wealth of school districts in the Central Lakes and Northeast Minnesota regions are among the highest in the state, and yet they have almost no relation to median income or Free and Reduced Lunch Percentages. In these 23 school districts the Referendum Market Value (RMV) Equalization Tiers are not having their intended impact.

Seasonal Recreation Property is excluded from RMV, but similar lake homes occupied year-round are included in RMV. These homes have higher than average property value due to their location on lakes and other factors. These year-round occupied homes artificially inflate the RMV/RPU of the school district.

HF 164/SF 1323 adjusts the equalizing factor upwards for districts with 30% or more Seasonal Recreation Property to account for the higher value of year-round occupied homes within the districts.

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