| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to education finance; increasing the general education basic formula |
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| 3 | 3 | | 1.3 allowance by an additional three percent per year; appropriating money; amending |
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| 4 | 4 | | 1.4 Minnesota Statutes 2024, section 126C.10, subdivision 2. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 126C.10, subdivision 2, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 2.Basic revenue.(a) The basic revenue for each district equals the formula |
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| 8 | 8 | | 1.8allowance times the adjusted pupil units for the school year. The formula allowance for |
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| 9 | 9 | | 1.9fiscal year 2023 is $6,863. The formula allowance for fiscal year 2024 is $7,138. The formula |
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| 10 | 10 | | 1.10allowance for fiscal year 2025 is $7,281. |
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| 11 | 11 | | 1.11 (b) The formula allowance for fiscal year 2026 and later must be rounded to the nearest |
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| 12 | 12 | | 1.12whole dollar and equals the formula allowance for the previous fiscal year times the greater |
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| 13 | 13 | | 1.13of: |
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| 14 | 14 | | 1.14 (1) 1.02 1.05; or |
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| 15 | 15 | | 1.15 (2) one plus the rate of change in inflation calculated in paragraph (c) but not to exceed |
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| 16 | 16 | | 1.161.03 1.06. |
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| 17 | 17 | | 1.17 (c) In January of the calendar year in which the formula allowance begins, the |
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| 18 | 18 | | 1.18commissioner of education must calculate the rate of change in inflation equal to the change |
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| 19 | 19 | | 1.19in the Consumer Price Index for all urban consumers as published by the Bureau of Labor |
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| 20 | 20 | | 1.20Statistics of the Department of Labor for the average of the fourth calendar quarter of the |
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| 21 | 21 | | 1.21second prior fiscal year compared to the average of the fourth calendar quarter of the |
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| 22 | 22 | | 1.22immediately prior fiscal year. |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | REVISOR CR/LJ 25-0346702/07/25 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 515 |
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| 30 | 30 | | NINETY-FOURTH SESSION |
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| 31 | 31 | | Authored by Bakeberg, Myers, Nadeau, Witte and Anderson, P. E.,02/13/2025 |
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| 32 | 32 | | The bill was read for the first time and referred to the Committee on Education Finance 2.1 (d) The commissioner must publish the formula allowance by the end of February of |
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| 33 | 33 | | 2.2each year. |
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| 34 | 34 | | 2.3 (e) It is the policy and purpose of the legislature to fund its public schools consistent |
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| 35 | 35 | | 2.4with its constitutional obligations. To this purpose, the legislature may enact additional |
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| 36 | 36 | | 2.5increases in the general education basic formula allowance. |
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| 37 | 37 | | 2.6 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later. |
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| 38 | 38 | | 2.7 Sec. 2. APPROPRIATION; GENERAL EDUCATION AID. |
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| 39 | 39 | | 2.8 Subdivision 1.Department of Education.The sums indicated in this section are |
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| 40 | 40 | | 2.9appropriated from the general fund to the Department of Education in the fiscal years |
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| 41 | 41 | | 2.10designated. |
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| 42 | 42 | | 2.11 Subd. 2.General education aid.For general education aid under Minnesota Statutes, |
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| 43 | 43 | | 2.12section 126C.13, subdivision 4: |
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| 44 | 44 | | 2026............2.13 $ |
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| 45 | 45 | | 2027............2.14 $ |
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| 46 | 46 | | 2Sec. 2. |
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| 47 | 47 | | REVISOR CR/LJ 25-0346702/07/25 |
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