This bill focuses on enhancing education finance in Minnesota by modifying how schools calculate eligibility for compensatory revenue, which is based on both direct certification and the application of educational benefits. It establishes a Compensatory Revenue Task Force to analyze the compensatory revenue formula and its effectiveness, while also modifying professional development requirements for teachers under the Read Act. The bill includes provisions for increased funding for teacher training and the school unemployment aid account, as well as requirements for reporting and appropriating funds for these initiatives.

Key amendments include changes to Minnesota Statutes that require districts to allocate at least 80% of compensatory revenue to schools serving eligible students, with the possibility of reallocating up to 40% under certain conditions for fiscal years 2026 and 2027. Additionally, the bill mandates that the commissioner of education determine eligibility for free and reduced-price meals using both direct certification and educational benefits applications starting October 1, 2024. The task force is tasked with evaluating the current compensatory revenue system and will report its findings to the legislature by February 2027.

Statutes affected:
Introduction: 120B.123, 126C.10, 126C.15