1.1 A bill for an act
1.2 relating to education finance; modifying the literacy incentive aid program;
1.3 establishing new eligible uses for literacy aid; appropriating money for literacy
1.4 aid; amending Minnesota Statutes 2024, section 124D.98.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 124D.98, is amended to read:
1.7 124D.98 LITERACY INCENTIVE AID.
1.8 Subdivision 1.Literacy incentive aid.A district's literacy incentive aid equals the sum
1.9of the proficiency aid under subdivision 2, and the growth aid under subdivision 3 basic
1.10literacy aid under subdivision 6, English learner literacy aid under subdivision 7, and targeted
1.11literacy aid under subdivision 8.
1.12 Subd. 1a.Definitions.(a) For purposes of this section, the following terms have the
1.13meanings given.
1.14 (b) "English learner concentration factor" means the ratio of: (1) the district's adjusted
1.15average daily membership of English learners under section 124D.59, subdivision 2, for
1.16the previous fiscal year; to (2) the district's total adjusted average daily membership for the
1.17previous fiscal year.
1.18 (c) "Poverty concentration factor" means the ratio of: (1) the sum of the number of pupils
1.19enrolled in the district eligible to receive free meals, plus one-half of the pupils eligible to
1.20receive reduced-priced meals on October 1 of the previous fiscal year; to (2) the number of
1.21pupils enrolled in the district on October 1 of the previous fiscal year.
1Section 1.
REVISOR CR/VJ 25-0515503/24/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 3072
NINETY-FOURTH SESSION
Authored by Virnig04/02/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1 Subd. 2.Proficiency aid.The proficiency aid for each school in a district that has
2.2submitted to the commissioner its local literacy plan under section 120B.12, subdivision
2.34a, is equal to the product of the school's proficiency allowance times the number of third
2.4grade pupils at the school on October 1 of the previous fiscal year. A school's proficiency
2.5allowance is equal to the percentage of students in each building that meet or exceed
2.6proficiency on the third grade reading Minnesota Comprehensive Assessment, averaged
2.7across the previous three test administrations, times $530.
2.8 Subd. 3.Growth aid.The growth aid for each school in a district that has submitted to
2.9the commissioner its local literacy plan under section 120B.12, subdivision 4a, is equal to
2.10the product of the school's growth allowance times the number of fourth grade pupils enrolled
2.11at the school on October 1 of the previous fiscal year. A school's growth allowance is equal
2.12to the percentage of students at that school making medium or high growth, under subdivision
2.134, on the fourth grade reading Minnesota Comprehensive Assessment, averaged across the
2.14previous three test administrations, times $530.
2.15 Subd. 4.Medium and high growth.(a) The definitions in this subdivision apply to this
2.16section.
2.17 (b) "Medium growth" is an assessment score within one-half standard deviation above
2.18or below the average year-two assessment scores for students with similar year-one
2.19assessment scores.
2.20 (c) "High growth" is an assessment score one-half standard deviation or more above the
2.21average year-two assessment scores for students with similar year-one assessment scores.
2.22 Subd. 5.Literacy incentive aid uses.A school district must use its literacy incentive
2.23aid to support implementation of evidence-based reading instruction meet the requirements
2.24and goals adopted in the district's local literacy plan under section 120B.12, subdivision 4a.
2.25The following are eligible uses of literacy incentive aid:
2.26 (1) training for kindergarten through grade 3 teachers, early childhood educators, special
2.27education teachers, reading intervention teachers working with students in kindergarten
2.28through grade 12, curriculum directors, and instructional support staff that provide reading
2.29instruction, on using evidence-based screening and progress monitoring tools;
2.30 (2) evidence-based training using a training program approved by the Department of
2.31Education under the Read Act;
2.32 (3) employing or contracting with a literacy lead, as defined in section 120B.119;
2.33 (4) employing an intervention specialist;
2Section 1.
REVISOR CR/VJ 25-0515503/24/25 3.1 (5) approved screeners, materials, training, and ongoing coaching to ensure reading
3.2interventions under section 125A.56, subdivision 1, are evidence-based;
3.3 (6) costs of substitute teachers to allow teachers to complete required training during
3.4the teachers' contract day; and
3.5 (7) stipends for teachers completing training required under section 120B.12.
3.6 Subd. 6.Basic literacy aid.(a) A district's basic literacy aid equals the product of: (1)
3.7the basic literacy aid allowance; and (2) the district's adjusted average daily membership
3.8for kindergarten through grade four for the previous fiscal year.
3.9 (b) The basic literacy aid allowance equals $....... for fiscal year 2026 and later.
3.10 Subd. 7.English learner literacy aid.(a) A district's English learner literacy aid equals
3.11the product of: (1) the English learner literacy aid allowance; (2) the district's English learner
3.12concentration factor; and (3) the district's adjusted average daily membership for kindergarten
3.13through grade four for the previous fiscal year.
3.14 (b) The English learner literacy aid allowance equals $....... for fiscal year 2026 and later.
3.15 Subd. 8.Targeted literacy aid.(a) A district's targeted literacy aid equals the product
3.16of: (1) the statewide targeted literacy aid allowance; (2) the district's poverty concentration
3.17factor; and (3) the district's adjusted average daily membership for kindergarten through
3.18grade four for the previous fiscal year.
3.19 (b) The statewide targeted literacy aid allowance equals $....... for fiscal year 2026 and
3.20later.
3.21 Subd. 9.Free and reduced-price meals.The commissioner must determine the number
3.22of children eligible to receive either a free or reduced-price meal on October 1 each year
3.23by means of direct certification or through the application for educational benefits. Children
3.24enrolled in a district on October 1 and determined to be eligible to receive free or
3.25reduced-price meals by December 15 of that school year must be counted as eligible on
3.26October 1 for purposes of aid under this section. The commissioner may use federal
3.27definitions for these purposes and may adjust these definitions as appropriate. The
3.28commissioner may adopt reporting guidelines to assure accuracy of data counts and
3.29eligibility. Districts must use any guidelines adopted by the commissioner.
3.30 EFFECTIVE DATE.This section is effective for aid payable in fiscal year 2026 and
3.31later.
3Section 1.
REVISOR CR/VJ 25-0515503/24/25 4.1 Sec. 2. APPROPRIATIONS.
4.2 Subdivision 1.Department of Education.The sums indicated in this section are
4.3appropriated from the general fund to the Department of Education for the fiscal years
4.4designated.
4.5 Subd. 2.Literacy aid.(a) For literacy aid under Minnesota Statutes, section 124D.98:
2026............4.6 $
2027............4.7 $
4.8 (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026.
4.9 (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027.
4Sec. 2.
REVISOR CR/VJ 25-0515503/24/25