Senate File 1197, presented by Senator Hauschildt on April 1, proposes state aid to help Greater Minnesota school districts that face operating levy challenges because seasonal recreation property (cabins) are taxed in ways that exclude them from local referendum levies. The sponsor said the near‑term effect has been that districts with high seasonal recreation tax bases struggle to pass local levies because those costs would fall disproportionately on homestead owners.

The bill would direct the state to provide aid equal to 50% of the operating levy cost attributable to seasonal recreation properties for districts that pass an operating levy. Fiscal staff explained the fiscal note: aid distribution beginning in fiscal 2027 is estimated at approximately $8.2 million and grows to about $9.3 million in fiscal 2029 (figures shown in the fiscal note), exclusive of property‑tax interaction estimates. The sponsor listed affected districts in his legislative area and noted the bill’s intent is to target equity rather than change how cabins are taxed.

Committee members asked the fiscal analyst to explain the calculations and the sponsor identified school district numbers in his area that would receive aid in the bill’s current form. The committee laid the bill over for further consideration and requested additional analysis.