This bill aims to enhance funding for special education and English learner programs in Minnesota by adjusting the cross subsidy aid based on the Consumer Price Index. Specifically, it amends Minnesota Statutes to increase the English learner programs revenue for fiscal years 2024 through 2026 and establishes a new formula for fiscal year 2027 and beyond. The bill introduces a new English learner cross subsidy factor that will be set at 25 percent for fiscal year 2027 and will adjust annually based on inflation, with a cap of 80 percent. Additionally, it specifies that the English learner cross subsidy aid will be calculated based on the difference between a district's expenditures for qualifying services and its revenue from English learner programs.

Furthermore, the bill modifies the cross subsidy reduction aid for special education by changing the aid factor for fiscal years 2024, 2025, and 2026, and establishes a similar inflation-based adjustment for fiscal year 2028 and later. The new provisions ensure that both English learner and special education funding will keep pace with inflation, thereby providing more consistent financial support to school districts. The effective date for these changes is set for revenue starting in fiscal year 2028 and later.