Local optional aid and levy replaced with basic supplemental revenue, basic supplemental aid amount increased, and money appropriated.

HF 2388 replaces Minnesota's three-tier local optional aid system (with rates of $100, $300, and $424 per adjusted pupil unit) with a single, higher basic supplemental revenue amount for school districts. It affects all public school districts and charter schools by changing how supplemental education funding is calculated and distributed. The bill increases the basic supplemental aid level while adjusting local levy formulas based on property values, using new thresholds for fiscal years 2026 and beyond. This simplifies the previous structure but maintains the requirement for districts to fund supplemental revenue through local property taxes.