This bill modifies the calculation and allocation of compensatory aid for the fiscal years 2027 and 2028 in Minnesota. It amends Minnesota Statutes 2025 Supplement, specifically sections 126C.10 and 126C.15. For fiscal year 2027, the bill establishes that the compensatory education revenue for each building will be determined by either the amount calculated under the new provisions or a minimum amount based on the previous year's revenue, ensuring that the total statewide revenue meets a specified threshold. Additionally, it allows for adjustments to the revenue allocation based on changes in student demographics or school operations.

Furthermore, the bill modifies the allocation rules for compensatory revenue, allowing districts or cooperatives to allocate up to 40 percent of their compensatory revenue to school sites for fiscal years 2026 and 2028, as opposed to the previous limit of 20 percent. It also includes a provision for an appropriation from the general fund to the commissioner of education for additional general education aid in fiscal year 2027. These changes aim to enhance the funding structure for compensatory education, ensuring that resources are effectively distributed to support students in need.