Signed by Governor Tim Walz

Vote Smart's Synopsis:

Vote to pass a bill that increases the basic education formula allowance in Minnesota.

Highlights:

• Increases charter schools’ general education revenue to $132 times the number of pupils for that fiscal year, starting with fiscal year 2026 (Sec. 16).

• Specifies that the compensation revenue pupil units for a district will equal the greater of the number of pupils for each building in the district in the 2026 fiscal year, or the 2024 fiscal year (Sec. 17).

• Increases the statewide compensatory allowance from $6,734 to $6,936 for fiscal year 2027, and specifies increases for the following fiscal years based on the inflationary formula (Sec. 19).

• Authorizes school districts to start the school year on or after September 1 for the 2026-27 and 2027-28 school years (Sec. 26).

• Establishes a task force to analyze the general education compensatory revenue formula, consisting of 14 members appointed by state legislators and education officials (Sec. 27).

• Appropriates the following amounts from the general fund to the Department of Education for the fiscal years indicated (Sec. 28-29):

• $8,509,608,000 for general education in 2026;

• $8,765,730,000 for general education in 2027;

• $25,349,000 for nonpublic pupil education in 2026;

• $27,160,000 for nonpublic pupil education in 2027;

• $28,123,000 for nonpublic pupil transportation in 2026;

• $29,359,000 for nonpublic pupil transportation in 2027;

• $$85,619,000 for achievement and integration in 2026;

• $85,222,000 for achievement and integration in 2027;

• $13,000,000 for implementation of the MTSS framework and Collaborative Minnesota Partnerships to Advance Student Success (COMPASS) model in both 2026 and 2027;

• $16,396,000 for interdistrict desegregation or integration transportation grants in 2026;

• $18,157,000 for interdistrict desegregation or integration transportation grants in 2027;

• $40,686,000 for literacy aid in 2026;

• $40,897,000 for literacy aid in 2027;

• $10,892,000 for the statewide testing and reporting system in both 2026 and 2027;

• $88,717,000 for alternative teacher compensation in 2026;

• $87,942,000 for alternative teacher compensation in 2027;

• $31,954,000 for Grow Your Own pathways to teacher licensure grants in 2026;

• $54,913,000 for Grow Your Own pathways to teacher licensure grants in 2027;

• $10,000,000 for the special education teacher pathway program in 2027;

• $44,950,000 for student support personnel in 2026;

• $45,772,000 for student support personnel in 2027;

• $96,453,000 for charter school building lease aid in 2026;

• $99,135,000 for charter school building lease aid in 2027;

• $20,646,000 for American Indian education in 2026;

• $21,548,000 for American Indian education in 2027;

• $2,775,484,000 for special education in 2026;

• $3,017,316,000 for special education in 2027;

• $16,218,000 for debt service equalization in 2026;

• $14,327,000 for debt service equalization in 2027;

• $97,104,000 for long-term facilities maintenance in 2026;

• $97,910,000 for long-term facilities maintenance in 2027;

• $57,642,000 for school breakfast in 2026;

• $60,413,000 for school breakfast in 2027;

• $264,162,000 for school lunch in 2026;

• $276,392,000 for school lunch in 2027;

• $17,995,000 for basic system support in 2026;

• $18,372,000 for basic system support in 2027;

• $14,394,000 for school library aid in 2026;

• $13,321,000 for school library aid in 2027;

• $39,365,000 for early childhood family education in 2026;

• $41,300,000 for early childhood family education in 2027;

• $33,683,000 for school readiness in both 2026 and 2027;

• $55,281,000 for adult basic education in 2026;

• $56,919,000 for adult basic education in 2027;

• $10,080,000 for community education in 2026;

• $11,815,000 for community education in 2027;

• $46,508,000 for Department of Education expenses in 2026; and

• $41,196,000 for Department of Education expenses in 2027;

• Appropriates the following amounts from the general fund to the Minnesota State Academies for the Deaf and the Blind (Sec. 29):

• $17,838,000 for 2026; and

• $17,937,000 for 2027.

• Specifies that a paraprofessional meets federal personnel qualifications if they meet one of the following criteria (Sec. 29):

• They have an associate’s degree or higher, or at least two years of college credits;

• They have received a passing score on an assessment approved by the Department of Education; or

• They have demonstrated each competency specified by the Department of Education.

• Authorizes school boards to include student representation (Sec. 29).

• Specifies that the allowance for student support personnel will be $30.05 per pupil in a district in fiscal years 2026 and 2027, and $34.32 for fiscal years 2028 and later (Sec. 29).

• Specifies that student support personnel aid dollars may be used to increase the number of positions, elevate existing personnel to full-time, or make existing personnel who were hired with one-time resources permanent (Sec. 29).

• Requires evidence-based structured literacy training for relicensure for teachers of English, reading, or language arts (Sec. 29).

• Specifies that members of charter school boards and individuals employed as charter school directors or administrators are subject to existing requirements relating to gift bans (Sec. 29).

• Requires charter schools to apply with their authorizer to change locations, and specifies that the determination will be based on market need and demand as well as the school’s ongoing viability (Sec. 29).

• Prohibits individuals from serving on the board of any charter school for 24 months if they are found in violation of the prohibition against serving on more than one charter school board at once (Sec. 29).

• Prohibits charter school board members from receiving more compensation for their role than a school board member in the district in which the charter school is located (Sec. 29).

• Requires charter school boards to establish a finance committee to review general matters of finance, including financial conflicts of interest (Sec. 29).

• Prohibits a contractor, their partner, or one of their immediate family members from serving on the board of directors of a charter school with which they are in contract (Sec. 29).

• Requires charter schools to maintain on their website a link to their authorizer’s webpage, which includes school performance reviews, the charter contract, and notices of intervention, deficiency, concern, corrective action, or probationary status (Sec. 29).

• Requires authorizers of charter schools to publish on their website an annual financial statement identifying sources of income and authorized expenses (Sec. 29).

• Establishes a state complaint process for violations of the federal Individuals with Disabilities Education Act (Sec. 29).

• Requires the commissioner of education to establish a Blue Ribbon Commission on Special Education to advise and assist the legislature and governor in transforming special education services (Sec. 29).

• Requires school districts and charter schools to develop a cardiac emergency response plan by the 2026-27 school year (Sec. 29).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the basic education formula allowance in Minnesota.

Highlights:

• Increases charter schools’ general education revenue to $132 times the number of pupils for that fiscal year, starting with fiscal year 2026 (Sec. 16).

• Specifies that the compensation revenue pupil units for a district will equal the greater of the number of pupils for each building in the district in the 2026 fiscal year, or the 2024 fiscal year (Sec. 17).

• Increases the statewide compensatory allowance from $6,734 to $6,936 for fiscal year 2027, and specifies increases for following fiscal years based on the inflationary formula (Sec. 19).

• Authorizes school districts to start the school year on or after September 1 for the 2026-27 and 2027-28 school years (Sec. 26).

• Establishes a task force to analyze the general education compensatory revenue formula, consisting of 14 members appointed by state legislators and education officials (Sec. 27).

• Appropriates the following amounts from the general fund to the Department of Education for the fiscal years indicated (Sec. 28-29):

• $8,509,608,000 for general education in 2026;

• $8,765,730,000 for general education in 2027;

• $25,349,000 for nonpublic pupil education in 2026;

• $27,160,000 for nonpublic pupil education in 2027;

• $28,123,000 for nonpublic pupil transportation in 2026;

• $29,359,000 for nonpublic pupil transportation in 2027;

• $$85,619,000 for achievement and integration in 2026;

• $85,222,000 for achievement and integration in 2027;

• $13,000,000 for implementation of the MTSS framework and Collaborative Minnesota Partnerships to Advance Student Success (COMPASS) model in both 2026 and 2027;

• $16,396,000 for interdistrict desegregation or integration transportation grants in 2026;

• $18,157,000 for interdistrict desegregation or integration transportation grants in 2027;

• $40,686,000 for literacy aid in 2026;

• $40,897,000 for literacy aid in 2027;

• $10,892,000 for the statewide testing and reporting system in both 2026 and 2027;

• $88,717,000 for alternative teacher compensation in 2026;

• $87,942,000 for alternative teacher compensation in 2027;

• $31,954,000 for Grow Your Own pathways to teacher licensure grants in 2026;

• $54,913,000 for Grow Your Own pathways to teacher licensure grants in 2027;

• $10,000,000 for the special education teacher pathway program in 2027;

• $44,950,000 for student support personnel in 2026;

• $45,772,000 for student support personnel in 2027;

• $96,453,000 for charter school building lease aid in 2026;

• $99,135,000 for charter school building lease aid in 2027;

• $20,646,000 for American Indian education in 2026;

• $21,548,000 for American Indian education in 2027;

• $2,775,484,000 for special education in 2026;

• $3,017,316,000 for special education in 2027;

• $16,218,000 for debt service equalization in 2026;

• $14,327,000 for debt service equalization in 2027;

• $97,104,000 for long-term facilities maintenance in 2026;

• $97,910,000 for long-term facilities maintenance in 2027;

• $57,642,000 for school breakfast in 2026;

• $60,413,000 for school breakfast in 2027;

• $264,162,000 for school lunch in 2026;

• $276,392,000 for school lunch in 2027;

• $17,995,000 for basic system support in 2026;

• $18,372,000 for basic system support in 2027;

• $14,394,000 for school library aid in 2026;

• $13,321,000 for school library aid in 2027;

• $39,365,000 for early childhood family education in 2026;

• $41,300,000 for early childhood family education in 2027;

• $33,683,000 for school readiness in both 2026 and 2027;

• $55,281,000 for adult basic education in 2026;

• $56,919,000 for adult basic education in 2027;

• $10,080,000 for community education in 2026;

• $11,815,000 for community education in 2027;

• $46,508,000 for Department of Education expenses in 2026; and

• $41,196,000 for Department of Education expenses in 2027;

• Appropriates the following amounts from the general fund to the Minnesota State Academies for the Deaf and the Blind (Sec. 29):

• $17,838,000 for 2026; and

• $17,937,000 for 2027.

• Specifies that a paraprofessional meets federal personnel qualifications if they meet one of the following criteria (Sec. 29):

• They have an associate’s degree or higher, or at least two years of college credits;

• They have received a passing score on an assessment approved by the Department of Education; or

• They have demonstrated each competency specified by the Department of Education.

• Authorizes school boards to include student representation (Sec. 29).

• Specifies that the allowance for student support personnel will be $30.05 per pupil in a district in fiscal years 2026 and 2027, and $34.32 for fiscal years 2028 and later (Sec. 29).

• Specifies that student support personnel aid dollars may be used to increase the number of positions, elevate existing personnel to full-time, or make existing personnel who were hired with onetime resources permanent (Sec. 29).

• Requires evidence-based structured literacy training for relicensure for teachers of English, reading, or language arts (Sec. 29?)

• Specifies that members of charter school boards and individuals employed as charter school directors or administrators are subject to existing requirements relating to gift bans (Sec. 29).

• Requires charter schools to submit an application with its authorizer to change locations, and specifies that the determination will be based on market need and demand as well as the school’s ongoing viability (Sec. 29).

• Prohibits individuals from serving on the board of any charter school for 24 months if they are found in violation of the prohibition against serving on more than one charter school board at once (Sec. 29).

• Prohibits charter school board members from receiving more compensation for their role than a school board member in the district in which the charter school is located (Sec. 29).

• Requires charter school boards to establish a finance committee to review general matters of finance including financial conflicts of interest (Sec. 29).

• Prohibits a contractor, their partner, or one of their immediate family members from serving on the board of directors of a charter school that they are in contract with (Sec. 29).

• Requires charter schools to maintain on their website a link to their authorizer’s webpage which includes school performance reviews, the charter contract, and notices of intervention, deficiency, concern, corrective action, or probationary status (Sec. 29).

• Requires authorizers of charter schools to publish on their website an annual financial statement identifying sources of income and authorized expenses (Sec. 29).

• Establishes a state complaint process for violations of the federal Individuals with Disabilities Education Act (Sec. 29).

• Requires the commissioner of education to establish a Blue Ribbon Commission on Special Education to advise and assist the legislature and governor in transforming special education services (Sec. 29).

• Requires school districts and charter schools to develop a cardiac emergency response plan by the 2026-27 school year (Sec. 29).

Full Bill Text