This bill seeks to improve education funding in Minnesota by increasing financial support for school districts through various allowances and aid programs. Key provisions include raising the general education basic formula allowance, special education cross subsidy aid, English learner cross subsidy aid, and safe schools revenue. The bill also connects extended time revenue to the general education basic formula allowance and enhances equalization aid for debt service levies, local optional revenue, and operating referendums. Additionally, it allows school boards to renew voter-approved operating referendums multiple times and adjusts the calculation for compensatory revenue eligibility based on direct certification and educational benefits applications.

Amendments to Minnesota Statutes include updates to the equalized debt service levy thresholds for fiscal years 2025, 2026, and 2027, setting the English learner cross subsidy aid percentage at 90% for fiscal year 2027 and beyond, and increasing the cross subsidy reduction aid factor to 90%. The bill also establishes new effective dates for various provisions, with many changes taking effect for revenue in fiscal year 2026 or later. Furthermore, it appropriates funds from the general fund to the Department of Education for educational aids, including a new provision for unemployment aid for hourly workers during the summer term for fiscal years 2026 and 2027, highlighting the need to support educational institutions and their employees.

Statutes affected:
Introduction: 123B.53, 124D.65, 125A.76, 126C.10, 126C.17, 126C.44