This bill aims to enhance education finance in Minnesota by establishing minimum compensation standards for teachers and certain unlicensed school staff. It introduces a new section in Minnesota Statutes, chapter 122A, which defines key terms such as "base teacher compensation," "covered unlicensed staff member," and sets specific compensation thresholds for the 2026-2027 school year. For instance, the base teacher compensation threshold is set at $80,000 for teachers with a master's degree and significant experience, while the unlicensed staff wage threshold is established at $25 per hour. The bill mandates periodic inflationary adjustments to these thresholds, ensuring that compensation keeps pace with economic changes.

Additionally, the bill outlines provisions for base teacher compensation aid and unlicensed staff wage aid, which will be available to school districts starting in fiscal year 2027. It requires the commissioner of education to calculate and publish these aid amounts based on the difference between the established thresholds and the current compensation of teachers and unlicensed staff as of September 1, 2025. Furthermore, the Professional Educator Licensing and Standards Board is tasked with submitting a report on hourly worker compensation by January 15, 2026, detailing the number of hourly workers, their average wages, and other relevant data. The effective date for these provisions is set for July 1, 2025.