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. It modifies the percentage of compensatory revenue that must be allocated to each school site, allowing for greater flexibility under certain conditions. Specifically, for fiscal years 2026 and 2027, if a district's compensatory pupil count does not include students identified through educational benefits, it may allocate up to 40% of its compensatory revenue according to a school board-adopted plan. Additionally, the bill establishes a Compensatory Revenue Task Force to analyze the compensatory revenue formula and its effectiveness, with a requirement for preliminary and final reports to be submitted to the legislature.

The bill also includes provisions for the task force's membership, duties, and operational guidelines, ensuring a diverse representation from various educational stakeholders. The task force is tasked with evaluating the current compensatory revenue system, identifying the best methods for targeting students in need, and exploring potential improvements to the revenue formula. Furthermore, the bill appropriates funds to support the Department of Education and the activities of the Compensatory Revenue Task Force, ensuring that the necessary resources are available for effective implementation and analysis.

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