Local optional revenue for school districts increased, and money appropriated.

HF 1989 increases funding for Minnesota school districts by raising the "local optional revenue" allowances used to calculate state aid. It sets the first-tier allowance at $550 for fiscal year 2027 (up from $300) and maintains the second-tier allowance at $424 through 2027, with future increases tied to the general education funding formula. School districts receive more state aid when they levy less than the maximum allowed under these new formulas, which include specific "equalizing factors" for different fiscal years (e.g., $626,450 for second-tier in 2025). The bill appropriates funds to cover this increased aid, effective for fiscal year 2027 and later.