This bill modifies the calculation of compensatory aid for the fiscal year 2027 by amending several sections of the Minnesota Statutes. Notably, it introduces a new provision that establishes that for revenue in fiscal year 2027, the compensation revenue pupil units for each building in a district will be the greater of the actual compensation revenue pupil units computed for that year or those computed for fiscal year 2024. Additionally, the bill extends the timeline for compensatory revenue calculations to include fiscal year 2027, allowing for adjustments in the funding formula to ensure adequate support for schools.

Furthermore, the bill updates the statewide compensatory allowance for fiscal year 2028, increasing it from $6,936 to $7,129, and allows for a higher percentage of compensatory revenue to be allocated to school sites based on a plan adopted by the school board. It also includes an appropriation from the general fund for additional general education aid in fiscal year 2027. The effective date of these changes is set for fiscal year 2028, with certain provisions taking effect immediately following final enactment.