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, and for fiscal year 2026 and beyond, it will be calculated based on the previous year's allowance multiplied by either 1.05 or one plus the rate of inflation, with a cap of 1.06. The bill also emphasizes the legislature's commitment to funding public schools in accordance with constitutional obligations and allows for potential additional increases in the formula allowance.

Additionally, the bill includes an appropriation section that allocates funds from the general fund to the Department of Education for general education aid, as specified under Minnesota Statutes, section 126C.13, subdivision 4. The effective date for these changes is set for fiscal year 2026 and later, ensuring that the new funding structure will be implemented in the upcoming fiscal years.

Statutes affected:
Introduction: 126C.10