This bill amends Minnesota Statutes 2024, section 126C.10, subdivision 2, to increase the general education basic formula allowance by an additional three percent per year. The formula allowance for fiscal year 2025 is set at $7,281, replacing the previous figure of $6,863 for fiscal year 2023. Additionally, the formula allowance for fiscal year 2026 and beyond will be calculated based on the previous year's allowance multiplied by either 1.05 or one plus the rate of inflation, with the maximum increase capped at 1.06, replacing the previous caps of 1.02 and 1.03, respectively.

The bill also includes an appropriation section that allocates funds from the general fund to the Department of Education for general education aid, as specified in Minnesota Statutes, section 126C.13, subdivision 4. The effective date for these changes is set for fiscal year 2026 and later, emphasizing the legislature's commitment to adequately funding public schools in accordance with its constitutional obligations.

Statutes affected:
Introduction: 126C.10