School district local optional revenue increased, and local optional revenue program indexed to the formula allowance.

HF 2510 increases and adjusts Minnesota school districts' local optional revenue funding. It sets a fixed allowance of $724 for fiscal years 2026-2027, then indexes future allowances to the state's formula allowance starting in 2028 using a specific ratio calculation. The bill establishes a two-tier system: a first tier at $300 per adjusted pupil unit and a second tier calculated as the total allowance minus $300. School districts use this structure to determine their maximum local levy amounts based on property values per student, with the second tier's cap changing annually. The changes take effect July 1, 2025, directly affecting all Minnesota public school districts.