Subd. 2.

Basic revenue.

(a) The basic revenue for each district equals the formula
allowance times the adjusted pupil units for the school year. deleted text begin The formula allowance for
fiscal year 2023 is $6,863.deleted text end The formula allowance for fiscal year 2024 is $7,138. The formula
allowance for fiscal year 2025 is deleted text begin $7,281deleted text end new text begin $7,427new text end .

(b) The formula allowance for fiscal year 2026 and later must be rounded to the nearest
whole dollar and equals the formula allowance for the previous fiscal year times the greater
of:

(1) 1.02; or

(2) one plus the rate of change in inflation calculated in paragraph (c) but not to exceed
1.03.

(c) In January of the calendar year in which the formula allowance begins, the
commissioner of education must calculate the rate of change in inflation equal to the change
in the Consumer Price Index for all urban consumers as published by the Bureau of Labor
Statistics of the Department of Labor for the average of the fourth calendar quarter of the
second prior fiscal year compared to the average of the fourth calendar quarter of the
immediately prior fiscal year.

(d) The commissioner must publish the formula allowance by the end of February of
each year.

(e) It is the policy and purpose of the legislature to fund its public schools consistent
with its constitutional obligations. To this purpose, the legislature may enact additional
increases in the general education basic formula allowance.