General education basic formula allowance increase by an additional three percent per year

This bill increases Minnesota's annual funding for public schools by raising the general education basic formula allowance by an additional 3% each year starting in fiscal year 2026. It directly affects all public school districts in Minnesota that receive state education funding under the basic formula. The key mechanism requires the state to calculate the annual increase as the greater of 3% or the inflation rate (based on the Consumer Price Index), but capped at 3%. This change amends existing statute to ensure schools receive predictable, inflation-adjusted funding while maintaining the state's constitutional obligation to fund public education. The bill takes effect for fiscal year 2026 and later.