1.1 A bill for an act 1.2 relating to education finance; increasing state total adult basic education aid; 1.3 modifying the adult basic education program aid limit; increasing funding to pay 1.4 the costs of commissioner-selected high school equivalency tests; appropriating 1.5 money; amending Minnesota Statutes 2024, sections 124D.531, subdivisions 1, 1.6 4; 124D.55. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 2024, section 124D.531, subdivision 1, is amended to read: 1.9 Subdivision 1.State total adult basic education aid.(a) The state total adult basic 1.10education aid for fiscal year 2024 2026 equals $52,759,000 $65,170,000, plus any amount 1.11that is not paid during the previous fiscal year as a result of adjustments under subdivision 1.124, paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education 1.13aid for later fiscal years equals: 1.14 (1) the state total adult basic education aid for the preceding fiscal year plus any amount 1.15that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 1.164, paragraph (a), or section 124D.52, subdivision 3; times 1.17 (2) the lesser of: 1.18 (i) 1.03; or 1.19 (ii) the greater of: (A) one plus the percent change in the formula allowance under section 1.20126C.10, subdivision 2, from the previous fiscal year to the current fiscal year; or (B) the 1.21average growth in state total contact hours over the prior ten program years. 1.22 Three percent of the state total adult basic education aid must be set aside for adult basic 1.23education supplemental service grants under section 124D.522. 1Section 1. 25-04117 as introduced02/20/25 REVISOR CR/BM SENATE STATE OF MINNESOTA S.F. No. 2341NINETY-FOURTH SESSION (SENATE AUTHORS: XIONG) OFFICIAL STATUSD-PGDATE Introduction and first reading03/10/2025 Referred to Education Finance 2.1 (b) The state total adult basic education aid, excluding basic population aid, equals the 2.2difference between the amount computed in paragraph (a), and the state total basic population 2.3aid under subdivision 2. 2.4 EFFECTIVE DATE.This section is effective for revenue in fiscal year 2026 and later. 2.5 Sec. 2. Minnesota Statutes 2024, section 124D.531, subdivision 4, is amended to read: 2.6 Subd. 4.Adult basic education program aid limit.(a) Notwithstanding subdivisions 2.72 and 3, the total adult basic education aid for a program per prior year contact hour must 2.8not exceed $30 $36 per prior year contact hour computed under subdivision 3, clause (2). 2.9 (b) The aid for a program under subdivision 3, clause (2), adjusted for changes in program 2.10membership, must not exceed the aid for that program under subdivision 3, clause (2), for 2.11the first preceding fiscal year by more than the greater of 11 percent or $10,000 $12,000. 2.12The limit in this paragraph does not apply for aid in fiscal year 2026. 2.13 (c) Adult basic education aid is payable to a program for unreimbursed costs occurring 2.14in the program year as defined in section 124D.52, subdivision 3. 2.15 (d) Any adult basic education aid that is not paid to a program because of the program 2.16aid limitation under paragraph (a) must be added to the state total adult basic education aid 2.17for the next fiscal year under subdivision 1. Any adult basic education aid that is not paid 2.18to a program because of the program aid limitations under paragraph (b) must be reallocated 2.19among programs by adjusting the rate per contact hour under subdivision 3, clause (2). 2.20 EFFECTIVE DATE.This section is effective for revenue in fiscal year 2026 and later. 2.21 Sec. 3. Minnesota Statutes 2024, section 124D.55, is amended to read: 2.22 124D.55 COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY TEST 2.23FEES. 2.24 (a) The commissioner shall pay 60 percent of the fee that is charged to an eligible 2.25individual for the full battery of the commissioner-selected high school equivalency tests, 2.26but not more than $40 for an eligible individual. 2.27 (b) Notwithstanding paragraph (a), For fiscal years year 2023 through 2027 only and 2.28later, subject to the availability of funds, the commissioner shall pay 100 percent of the fee 2.29charged to an eligible individual for the full battery of the commissioner-selected high 2.30school equivalency tests, but not more than the cost of one full battery of tests per year for 2.31any individual. 2Sec. 3. 25-04117 as introduced02/20/25 REVISOR CR/BM 3.1 EFFECTIVE DATE.This section is effective July 1, 2025. 3.2 Sec. 4. APPROPRIATIONS. 3.3 Subdivision 1.Department of Education.The sums indicated in this section are 3.4appropriated from the general fund to the Department of Education for the fiscal years 3.5designated. 3.6 Subd. 2.Adult basic education aid.(a) For adult basic education aid under Minnesota 3.7Statutes, section 124D.531: 2026............3.8 $ 2027............3.9 $ 3.10 (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026. 3.11 (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027. 3.12 Subd. 3.High school equivalency tests.(a) For payment of the costs of the 3.13commissioner-selected high school equivalency tests under Minnesota Statutes, section 3.14124D.55: 2026.....375,0003.15 $ 2027.....375,0003.16 $ 3.17 (b) Any fiscal year 2026 balance remaining is available in fiscal year 2027. 3Sec. 4. 25-04117 as introduced02/20/25 REVISOR CR/BM