The bill amends Minnesota Statutes 2023 Supplement, section 126C.10, subdivision 3, to clarify the distribution of compensatory education revenue for fiscal years 2024, 2025, 2026, and beyond. It establishes that for fiscal year 2024, compensatory education revenue for each building will be calculated based on a specific formula, while for fiscal years 2025 and 2026, the revenue will be determined according to new legislative guidelines. The bill also outlines provisions for the allocation of revenue when districts change their contracting arrangements with alternative programs or area learning centers.

Additionally, the bill introduces new provisions regarding the calculation of compensatory education revenue for voluntary prekindergarten programs, charter schools, and contracted alternative programs in their first year of operation. Notably, it includes new language that mandates additional revenue to be distributed proportionately if statewide revenue falls below specified thresholds of $838,947,000 for fiscal year 2026 and $857,152,000 for fiscal year 2027 and later. The bill aims to ensure that compensatory education funding is adequately provided to support educational programs across the state.