A school district's revenue limit base is comprised of the following revenues received by the district in the prior school year: general school aids, property taxes, computer aid, and exempt personal property aid. The district's current year allowable revenue maximum is computed by using this prior year base along with district enrollments and an inflationary increment.
State law allows additional revenue authority up and above this allowable revenue maximum if certain conditions exist in the district. For example, a district is allowed to increase their revenue limit by the amount of an approved referendum. This additional revenue limit authority (referred to as exemptions) is defined as either recurring (permanent) or non-recurring (one-time). The distinction is important.
If an exemption is recurring, the amount of the exemption is added to the district's revenue limit in the current year and remains in the district's base revenue in subsequent school years. If an exemption is non-recurring, the amount of the exemption is added to the district's revenue limit in the current year but is then removed from the district's base revenue for the revenue limit calculation in the following school year.
Select a link to learn more about allowable exemptions to the revenue limit.