Education Finance

This bill clarifies how Minnesota school districts and charter schools receive state library aid based on student enrollment. It specifies that regular school districts get aid equal to the greater of $16.11 per student or $40,000, while charter schools receive the greater of $16.11 per student or $20,000. The change retroactively applies to fiscal year 2024 and future years, ensuring consistent funding calculations. This directly affects all public school districts and charter schools eligible for state library aid under Minnesota Statutes.

HF 4980 modifies how Minnesota calculates and distributes compensatory education funding for school buildings in fiscal years 2027 and 2028. The bill changes the revenue formula to be based on the number of compensatory pupils rather than a fixed allowance per pupil and introduces a minimum funding floor for the 2027 school year. It also increases the percentage of funds school districts can reallocate to specific sites from 20 percent to 40 percent for these two years. Finally, the legislation appropriates money from the general fund to the commissioner of education to support these changes.

HF 3490 authorizes Minnesota to participate in a federal tax credit program by establishing rules for scholarship-granting organizations (SGOs). These SGOs must be 501(c)(3) nonprofits that spend at least 90% of funds on student scholarships, verify household income, prioritize returning students/siblings, and avoid targeting specific students. Organizations must report annually to the Minnesota Department of Education, which will post a public list of approved SGOs. The bill clarifies it does not grant schools additional control over nonpublic schools or their students.

This bill increases funding for student support personnel in Minnesota schools by raising the per-pupil allowance amounts and establishing minimum funding floors for districts and charter schools. It directly affects independent school districts, special districts, charter schools, and cooperative units by adjusting how much money they receive for staff like counselors, nurses, and social workers. The law sets specific dollar amounts for the per-student allowance in 2025, 2026, 2027, and beyond, while also requiring districts to reserve funds in their balances and limiting cooperative aid to actual expenditures. Additionally, the bill appropriates state money to cover these increased funding levels for fiscal years 2026 and 2027.

This bill repeals a previous requirement that reduced special education funding by $250 million starting in the 2027-2028 school year. The legislation directly affects the state's education finance system and the Department of Education by removing the mandate to cut special education aid appropriations. Under this bill, the commissioner of management and budget will no longer be required to assume the $250 million reduction when preparing state revenue forecasts, and the commissioner of education will not need to adjust the special education cross subsidy aid factor to make up any shortfall. The change takes effect on July 1, 2026, restoring the previous funding structure for special education aid.