Subd. 3.

Compensatory education revenue.

(a) For fiscal year 2024, the compensatory
education revenue for each building in the district equals the formula allowance minus $839
times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3. A district's compensatory revenue equals the sum of its compensatory revenue
for each building in the district and the amounts designated under Laws 2015, First Special
Session chapter 3, article 2, section 70, subdivision 8, for fiscal year 2017. Revenue shall
be paid to the district and must be allocated according to section 126C.15, subdivision 2.

(b) For fiscal year 2025, compensatory revenue must be calculated under Laws 2023,
chapter 18, section 3.

(c) For fiscal year 2026 and later, the compensatory education revenue for each building
in the district equals its compensatory pupils multiplied by the building compensatory
allowance. Revenue shall be paid to the district and must be allocated according to section
126C.15, subdivision 2.

(d) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the alternative
program for the prior school year.

(e) When the fiscal agent district for an area learning center changes prior to the start of
a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

(f) Notwithstanding paragraph (c), for voluntary prekindergarten programs under section
124D.151, charter schools, and contracted alternative programs in the first year of operation,
compensatory education revenue must be computed using data for the current fiscal year.
If the voluntary prekindergarten program, charter school, or contracted alternative program
begins operation after October 1, compensatory education revenue must be computed based
on pupils enrolled on an alternate date determined by the commissioner, and the
compensatory education revenue must be prorated based on the ratio of the number of days
of student instruction to 170 days.

(g) Notwithstanding paragraph (c), for fiscal year 2026, if the calculation under paragraph
(d) results in statewide revenue of less than $838,947,000, additional revenue must be
new text begin proportionately new text end provided to each building deleted text begin in a manner prescribeddeleted text end by the commissioner of
education until total statewide revenue equals $838,947,000.

(h) Notwithstanding paragraph (c), for fiscal year 2027new text begin and laternew text end , if the calculation under
paragraph (d) results in statewide revenue of less than $857,152,000, additional revenue
must benew text begin proportionatelynew text end provided to each building deleted text begin in a manner prescribeddeleted text end by the
commissioner of education until total statewide revenue equals $857,152,000.