This bill aims to enhance the calculation of a school's compensatory revenue eligibility by incorporating both direct certification and the application of educational benefits. Starting October 1, 2024, the commissioner will determine the number of children eligible for free and reduced-price meals using these two methods, ensuring that children enrolled on that date are counted for the current school year if they meet eligibility criteria by December 15. Additionally, the bill modifies the allocation of compensatory revenue, allowing districts to allocate up to 40% of the revenue to school sites under specific conditions for fiscal years 2026 and 2027, rather than the standard 20%.

Furthermore, the bill establishes a Compensatory Revenue Task Force tasked with analyzing the compensatory revenue formula, its purpose, revenue levels, distribution, and usage. The task force will consist of various appointed members, including education and revenue commissioners, and will be required to report its findings to the legislature by February 15, 2026, and a final report by February 15, 2027. The bill also includes appropriations for the Department of Education to support these initiatives.

Statutes affected:
Introduction: 126C.10, 126C.15