Education

Other General Education - Abatement Revenue

Statewide Outcome(s):

Abatement Revenue supports the following statewide outcome(s).

Minnesotans have the education and skills needed to achieve their goals.

Context:

This state aid and local levy program maintains equity for students and taxpayers by replacing revenue to which the district was entitled but did not receive due to abatements. An “abatement” occurs when property taxes on a real estate parcel are decreased after the district certifies levy revenue. All eligible school districts in Minnesota participate in this program. MDE seeks to replace the revenue in the same proportion of aid and levy as the original entitlement. Abatement revenue is provided to school districts to prevent permanent revenue losses as certified by the county auditors.

Strategies:

Abatement aid and levy is calculated annually based on abatements reported by counties to the Minnesota Department of Education (MDE). Relevant statutes directing the calculation of abatement aid and levy are M.S. 126C.46 and M.S 127A.49, subd. 2. Abatements are reported to MDE by counties in the spring of each year: aid is paid in the following fiscal year and levy is included in taxes payable in the next calendar year.

This revenue assures that education programs provided by the school district will not be disrupted due to loss of revenue.

Results:

School districts do not incur permanent revenue loss as a result of property tax abatements.

Performance Measures Notes:

Previous year data is FY 2012 and current year data is FY 2013.