1/15/2003
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Operating Referendum
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–Approved by school district voters to provide districts with additional operating revenue.
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–Mix:  Depending on a district’s property wealth, some of the revenue is raised in the form of a property tax levy some from state aid.   The higher a district’s property wealth, the more referendum revenue will be raised by levy.  This process is called “equalization”.
lM.S. 126C.17
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–Limit:  Referendum revenue may not exceed 18.2% of the formula allowance -- $837 per pupil in current school year.  Some districts may exceed this limit if they had a high referenda when the limit was put in place (1994).  Sparsity districts may also exceed the cap.
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–“Simple Formula”:   Referendum Revenue = Referendum Allowance * RMCPUs
–Difference:  Referendum revenue is determined based on a RESIDENT pupil count. The AID portion of the revenue is portable with a student to the school in which the student receives an education.
–          In FY 2003 $58.8 million in Aid
– $229.7 million in Levy
– $288.5 million in Revenue