1.1 A bill for an act 1.2 relating to education finance; increasing special education and English learner 1.3 cross subsidy aid by the increase in the Consumer Price Index; amending Minnesota 1.4 Statutes 2024, sections 124D.65, subdivision 5; 125A.76, subdivision 2e. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 124D.65, subdivision 5, is amended to read: 1.7 Subd. 5.School district EL revenue.(a) For fiscal year 2024 through fiscal year 2026, 1.8a district's English learner programs revenue equals the sum of: 1.9 (1) the product of (i) $1,228, and (ii) the greater of 20 or the adjusted average daily 1.10membership of eligible English learners enrolled in the district during the current fiscal 1.11year; and 1.12 (2) $436 times the English learner pupil units under section 126C.05, subdivision 17. 1.13 (b) For fiscal year 2027 and later, a district's English learner programs revenue equals 1.14the sum of: 1.15 (1) the product of (i) $1,775, and (ii) the greater of 20 or the adjusted average daily 1.16membership of eligible English learners enrolled in the district during the current fiscal 1.17year; and 1.18 (2) $630 times the English learner pupil units under section 126C.05, subdivision 17. 1.19 (c) The English learner cross subsidy factor equals 25 percent for fiscal year 2027. For 1.20fiscal year 2028 and later, the English learner cross subsidy factor equals the cross subsidy 1.21factor for the previous fiscal year times one plus the rate of change in inflation calculated 1Section 1. 25-00067 as introduced11/25/24 REVISOR CR/LN SENATE STATE OF MINNESOTA S.F. No. 1125NINETY-FOURTH SESSION (SENATE AUTHORS: CLARK, Mohamed and Oumou Verbeten) OFFICIAL STATUSD-PGDATE Introduction and first reading02/06/2025 Referred to Education Finance 2.1under section 126C.10, subdivision 2, paragraph (c). The English learner cross subsidy 2.2factor must not exceed 80 percent in any fiscal year. 2.3 (c) (d) A pupil ceases to generate state English learner aid in the school year following 2.4the school year in which the pupil attains the state cutoff score on a commissioner-provided 2.5assessment that measures the pupil's emerging academic English. 2.6 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2028 and later. 2.7 Sec. 2. Minnesota Statutes 2024, section 125A.76, subdivision 2e, is amended to read: 2.8 Subd. 2e.Cross subsidy reduction aid.(a) A school district's annual cross subsidy 2.9reduction aid equals the school district's initial special education cross subsidy for the 2.10previous fiscal year times the cross subsidy aid factor for that fiscal year. 2.11 (b) The cross subsidy aid factor equals 6.43 percent for fiscal year 2023; 44 percent for 2.12fiscal years 2024, 2025, and 2026; and 50 percent for fiscal year 2027; and the amount 2.13specified in paragraph (c) for fiscal year 2028 and later. 2.14 (c) For fiscal year 2028 and later, the special education cross subsidy factor equals the 2.15cross subsidy factor for the previous fiscal year times one plus the rate of change in inflation 2.16calculated under section 126C.10, subdivision 2, paragraph (c). The special education cross 2.17subsidy factor must not exceed 80 percent in any fiscal year. 2.18 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2028 and later. 2Sec. 2. 25-00067 as introduced11/25/24 REVISOR CR/LN