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Minn. committee weighs bill to let districts use lease-levy funds for graduation after UMN cancellations
Summary
A bill to clarify that school districts may use lease-levy authority to rent venues for commencement ceremonies was laid over after testimony that a 2024 MDE reinterpretation and the University of Minnesota’s cancellation of Mariucci Arena surged costs for districts.
Rep. Greene asked the House Education Finance Committee on March 12 to restore explicit language allowing districts to use lease-levy authority to rent space for high-school graduation ceremonies, saying a 2024 reinterpretation by the Minnesota Department of Education has left districts scrambling for venues.
"I think high school graduation is the formal conclusion of a student's educational career," Rep. Greene said, arguing that commencement is inseparable from the instructional mission and should be eligible under lease-levy authority.
John Moore, executive director of finance and operations for area school districts, told the committee that the statutory language has not changed but the approving agency’s interpretation has. "The interpretation has significant real world consequences," he said, adding that the new guidance sent his district's costs for commencements more than tripling this year. Moore and other district officials described limited venue options for large ceremonies and the need to preserve district operating dollars for classrooms.
A student from East Ridge High School said the venue disruption had a direct effect on families: "When they canceled graduation at the University of Minnesota, each student had to pay an additional $30 fee to attend their own graduation," the student testified.
An MDE assistant director of government relations explained the department’s 2024 review of program codes and said that, in the agency’s view, the listed program codes did not explicitly include commencement ceremonies; the agency added guidance and provided districts a final year to levy for ceremonies before changing practice.
House fiscal staff told members the fiscal note shows no direct statewide cost in the first table but that districts could incur additional facility costs if they use the authority; MDE said it could not predict statewide fiscal impact because it did not know how many districts would choose to levy for ceremonies if the allowance were explicit.
Committee members expressed frustration over an administrative interpretation that altered long‑standing practice and said the bill would provide clarity without increasing levy authority. After questions and discussion, the committee laid House File 3790 over for possible inclusion.
The bill was laid over for possible inclusion; no formal roll-call vote count was recorded in the transcript.
