1.1 A bill for an act
1.2 relating to education finance; establishing the funding for success incentive aid
1.3 program; appropriating money; proposing coding for new law in Minnesota
1.4 Statutes, chapter 124D.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [124D.701] FUNDING FOR SUCCESS INCENTIVE AID PROGRAM.
1.7 Subdivision 1.Funding for success program establishment.The funding for success
1.8program is established to provide outcome-based incentive aid to schools that demonstrate
1.9success through metrics on graduation rates and recent graduate enrollment success rates.
1.10 Subd. 2.Metrics for success.(a) "Graduation rate multiplier" is determined by the
1.11percentage above 90 percent of students at a school who meet graduation requirements
1.12under section 120B.02, subdivision 2. Graduation rate data must be measured for the two
1.13preceding academic years. Each percentage point above 90 percent is worth a 0.1 multiplier,
1.14with a 90 percent graduation rate being zero and 100 percent graduation rate being one.
1.15 (b) "Recent graduate enrollment success rate multiplier" is determined by the percentage
1.16of a school's recent graduates who are enrolled in a public college or university with in-state
1.17tuition status who are not taking any remedial academic courses. Recent graduates are
1.18students who graduated in the two preceding academic years. Recent graduate enrollment
1.19success data must be measured for the two preceding academic years. Each percentage point
1.20above 90 percent is worth a 0.1 multiplier, with a 90 percent recent graduate enrollment
1.21rate without any remedial academic courses being zero and 100 percent graduation rate
1.22being one.
1Section 1.
REVISOR CR/KR 25-0184101/08/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 274
NINETY-FOURTH SESSION
Authored by Quam01/23/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1 Subd. 3.Funding for success.(a) A school's funding for success incentive aid for fiscal
2.2year 2026 and later equals the ratio of:
2.3 (1) the product of: (i) the sum of the graduation rate multiplier under subdivision 2,
2.4paragraph (a), plus the recent graduate enrollment success rate multiplier under subdivision
2.52, paragraph (b); times (ii) the total enrollment of the school; and
2.6 (2) the total amount of funding for success incentive aid available to all schools.
2.7 (b) A school that does not meet either metric in subdivision 2 for having a graduation
2.8rate multiplier or recent graduate enrollment success rate multiplier above zero may not
2.9receive any funding for success incentive aid.
2.10 Sec. 2. APPROPRIATION.
2.11 Subdivision 1.Department of Education.The sums indicated in this section are
2.12appropriated from the general fund to the Department of Education for the fiscal years
2.13designated.
2.14 Subd. 2.Funding for success incentive aid.(a) For funding for success incentive aid
2.15under Minnesota Statutes, section 124D.701:
2026............2.16 $
2027............2.17 $
2.18 (b) The base for fiscal year 2028 is $.......
2.19 EFFECTIVE DATE.This section is effective for the 2026-2027 school year and later.
2Sec. 2.
REVISOR CR/KR 25-0184101/08/25