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 eligible children for free and reduced-price meals using these two methods. Additionally, the bill modifies the allocation of compensatory revenue, allowing districts to allocate up to 40 percent of the revenue to school sites under specific conditions for fiscal years 2026 and 2027, rather than the standard 20 percent.

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 representatives from education and community organizations, and is required to submit preliminary and final reports to the legislature by February 2026 and 2027, respectively. The bill also includes appropriations for the Department of Education to support these initiatives.

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