'Skeen'--Minnesota's School Finance Case. House Research Information Brief.

This document summarizes the Minnesota state district court opinion in "Skeen v. State of Minnesota" and outlines changes made by the 1992 legislature in the state school finance system. In "Skeen," the court found several elements of the state's school finance system unconstitutional. These included the referendum levy, the debt service levy, and supplemental revenue. Legislative alternatives discussed in the district court opinion included: (1) eliminate property wealth-funding mechanisms; (2) fund districts' identifiable special needs and differential costs; and (3) eliminate elements of the school finance system that prevent efficiency. Following the court decision, the 1992 State Legislature made the following changes in the state's school finance system--it adopted and funded a debt-service-equalization program over a 3-year phase-in period, and lowered the cap on referendum revenue from 35 to 30 percent of the general education formula allowance. The district court opinion has no precedential value, which means that other Minnesota judicial districts need not follow the case. However, the state appealed the case to the Minnesota Supreme Court, which will likely decide the matter in 1993. The court's final decision may have a significant impact on the structure of the state's school finance system and the legislature's ability to make decisions affecting the system. Fourteen endnotes are included. (LMI)