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, effective for aid in fiscal year 2026 and beyond. It modifies the allocation of compensatory revenue, allowing districts to allocate up to 40% of the revenue to school sites under specific conditions, particularly if the compensatory pupil count excludes students identified through educational benefits. Additionally, the bill establishes a Compensatory Revenue Task Force tasked with analyzing the compensatory revenue formula, its purpose, distribution, and usage, with a preliminary report due by February 15, 2026, and a final report by February 15, 2027.

The bill also includes provisions for the task force's membership, which will consist of various education stakeholders, and outlines its duties, such as evaluating the current student population generating compensatory revenue and determining the best methods for identifying students in need of assistance. Furthermore, it appropriates funds from the general fund to the Department of Education for additional general education aid and for the activities of the Compensatory Revenue Task Force.

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