Opinion ID: 2124044
Heading Depth: 1
Heading Rank: 6

Heading: Supplemental Revenue

Text: The second component which plaintiffs claim is unconstitutional is the supplemental revenue provision. Supplemental revenue is part of the general education revenue statute, Minn.Stat. § 124A.22 (1992), and it comprises 0.3-0.5% of total education funding. Supplemental revenue is, however, completely equalized. While supplemental revenue guarantees school districts $250 ppu more than they were guaranteed in 1987-88, this revenue was designed to prevent districts from experiencing revenue decline after the 1987 legislative reforms, especially those districts which experienced higher costs than other districts. This supplemental revenue program guaranteed that districts would receive $250 per pupil unit more than they received before the 1987 legislative changes. This program was intended to keep districts from suffering a sudden relative loss in operating revenue. This program was not designed, however, to be an ongoing subsidy. Over time, supplemental revenue is gradually being phased out as basic revenue increases. For any district that receives more than $250 ppu of this revenue, supplemental revenue will be decreased in the same amount as any increases the district receives in T & E or compensatory (AFDC) revenue, two components which were increased substantially by the 1991 legislature. See Minn.Stat. § 124A.22, subd. 8 (1992). In evaluating this statute, the trial court found it unconstitutional because the court found that the revenue is more commonly available to high wealth districts, the level of funding is based on historical and political considerations, and, in conjunction with the referendum levy, the existence of this revenue creates even greater disparities between wealthy and poor school districts.