Education Legislation

SEE Leads on School Levy Property Tax Bill

Update (3/28/22)  HF4064 – The House Property Tax Committee included about $40 million a year in equalization for location optional revenue (LOR) in the property tax omnibus. The equalization is for the first $300 per pupil of the $724 per pupil levy and is based on 170% of the state average referendum market value, making the property tax relief permanent and ongoing.  In recent years, this increase would have been significant. But given the state’s budget surplus, the amount is only modest. The legislature can do better.

February 2022 – The SEE school levies tax relief and reform bill is here!  Following is what the HF3224 legislation does.

  1. Significantly lowers property taxes and makes future school levies more affordable in lower-property wealth school districts by increasing equalization. The impacted school levies are the voter-approved referendum, the board-approved location optional revenue (LOR), and debt-service (for building bonds).
  2. Prevents the erosion of the property tax relief by indexing the formulas to inflation.
  3. Increases the cap on LOR by $101, raising it from $724 to $825 per pupil for the next school year, and then increases the LOR revenue by the same percentage as increases to the basic formula.
  4. Increases long-term facility maintenance (LTFM) by $120 to $500 per student next year and then links the funding to inflation after that. LTFM equalization is already highly equalized and linked to inflation.
  5. Allows joint powers to be eligible for LTFM.
  6. Allows consolidated school districts to qualify for enhanced debt service (formerly known as natural disaster debt service.)
  7. Allows cooperatives and joint powers to qualify for leased levies.

Legislative Committee Meetings

Keep up on the education issues that legislative committees address.

SEE Side-by-Side Comparison

Compare the new funding priorities of the Governor, House, and Senate.​

Education Finance and Policy Proposals

The Governor, House, and Senate each produce their own education bills that reflect their priorities. At the end of the session (or possibly in a special session), the three versions must be reconciled into a single education bill through negotiations.

The Governor's Education Bills

Senate Education Bills


Senate Education Finance and Policy Omnibus – $32.4 million for 2022-23 and $1.4 million for the following two-year biennium

Two new spending proposals:

  • $30 million – grants for K-5 teachers to take the LETRS literacy training. (one-time)
  • $700,000 – to hire literacy support directors at each of the MDE Regional Centers of Support.

Additional Information:

House Education Bills


HF4300 – House Education Finance and Policy Omnibus – $1.2 billion for 2022-23 and $2.1 billion combined for the following two-year biennium

Highlights include:


Additional Information:

Other Notable Bills

Final Days of the 2022 Legislative Session
The Speaker of the House, Senate Majority Leader, and the Governor agreed to $320 million annually in new funding for E-12 education, amounting to $1 billion over the next three years. Although the House and Senate traded multiple offers, they could not reach an agree.ment Between $200 to $265 million to fund the gap in special education funding, which would have benefited every student, was left on the table.
Special Education Cross Subsidy
HF2657 – the bill proposes to fully fund the special education cross subsidy – the unfunded cost of providing mandated special education services. This cross subsidy is the largest financial challenge facing public schools. With a $9.3 billion state budget surplus, it is time for the legislature to eliminate the cross subsidy rather than pass the cost down to lost educational opportunities for students and higher property taxes for the local taxpayer.