1.1 A bill for an act
1.2 relating to education finance; establishing minimum compensation for teachers
1.3 and certain other school staff; establishing aid programs to support teacher base
1.4 compensation and unlicensed staff wage requirements; requiring a report; proposing
1.5 coding for new law in Minnesota Statutes, chapter 122A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [122A.418] COMPENSATION FOR TEACHERS AND OTHER
1.8UNLICENSED SCHOOL STAFF.
1.9 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
1.10subdivision have the meanings given, unless another meaning is clearly indicated.
1.11 (b) "Base teacher compensation" means annual base salary, exclusive of fringe benefits.
1.12 (c) "Covered unlicensed staff member" means an employee of a school district, charter
1.13school, intermediate school district, cooperative unit under section 123A.24, subdivision
1.142, the Perpich Center for Arts Education, or the Minnesota State Academies who:
1.15 (1) works at least 14 hours per week for at least 100 days in a school year in one position;
1.16 (2) is not required to hold a license issued by the Professional Educator Licensing and
1.17Standards Board or the Board of School Administrators; and
1.18 (3) regularly interacts with students as part of their job duties.
1.19 (d) "Full-time equivalent teacher" means a licensed teacher who is contracted to work
1.20the lesser of either (1) the number of hours classified as full-time employment in the
1.21collective bargaining agreement that applies to teachers, or (2) 182 days in a school year,
1.22and is employed by a school district, charter school, intermediate school district, cooperative
1Section 1.
25-05292 as introduced03/28/25 REVISOR CR/EN
SENATE
STATE OF MINNESOTA
S.F. No. 3490NINETY-FOURTH SESSION
(SENATE AUTHORS: PORT and Mohamed)
OFFICIAL STATUSD-PGDATE
Introduction and first reading05/07/2025
Referred to Education Finance 2.1unit under section 123A.24, subdivision 2, the Perpich Center for Arts Education, or the
2.2Minnesota State Academies.
2.3 (e) "Teacher compensation threshold" for the 2026-2027 school year means: (1) $80,000
2.4for a full-time equivalent teacher who holds a master's degree and has been employed as a
2.5licensed teacher in Minnesota; (2) $100,000 for a full-time equivalent teacher who holds a
2.6master's degree and has been employed as a licensed teacher for at least ten years; and (3)
2.7$60,000 for a full-time equivalent teacher who does not meet the criteria under clause (1).
2.8For the 2027-2028 school year and later, the thresholds must be periodically adjusted as
2.9provided under subdivision 2. Base compensation must be prorated based on the portion of
2.10a full-time equivalent position an employee is contracted to work.
2.11 (f) "Unlicensed staff wage threshold" for the 2026-2027 school year means $25 per hour.
2.12For the 2027-2028 school year and later, the threshold must be periodically adjusted as
2.13provided under subdivision 2.
2.14 Subd. 2.Inflationary adjustment to compensation and wage thresholds.(a) The
2.15compensation and wage thresholds must be periodically adjusted for inflation as provided
2.16under this subdivision. The adjusted thresholds become effective on the July 1 following
2.17the commissioner's publication of each adjustment.
2.18 (b) On January 15, 2030, and every four years thereafter, the commissioner of education
2.19must calculate and publish adjusted compensation and wage thresholds. The thresholds
2.20must be increased by the greater of zero or the rate of change in inflation equal to the change
2.21in the Consumer Price Index for all urban consumers as published by the Bureau of Labor
2.22Statistics of the Department of Labor for the average of the fourth calendar quarter of fiscal
2.23year 2025 compared to the average of the fourth calendar quarter of the immediately prior
2.24fiscal year.
2.25 Subd. 3.Base compensation.Beginning on July 1, 2026, the base teacher compensation
2.26for a full-time equivalent teacher must not be less than the teacher compensation threshold
2.27applicable to the teacher for that school year.
2.28 Subd. 4.Bargaining.This section does not modify a district's obligation to collectively
2.29bargain with the exclusive representative for teachers and other educators.
2.30 Subd. 5.Base teacher compensation aid.(a) For fiscal year 2027 and later, a school
2.31district, charter school, intermediate school district, or cooperative unit under section
2.32123A.24, subdivision 2, is eligible for base teacher compensation aid.
2Section 1.
25-05292 as introduced03/28/25 REVISOR CR/EN 3.1 (b) The aid for each district equals the sum of the amounts calculated under paragraph
3.2(c).
3.3 (c) For each teacher employed by the district on September 1, 2025, the commissioner
3.4must calculate the difference between: (1) the teacher compensation threshold applicable
3.5to the teacher for the 2026-2027 school year; and (2) the teacher's base compensation as of
3.6September 1, 2025. The amount calculated for a teacher under this paragraph must not be
3.7less than zero.
3.8 (d) The commissioner must recalculate each district's base teacher compensation aid
3.9upon each inflationary adjustment of the compensation thresholds.
3.10 (e) Aid under this subdivision must be reserved to pay teacher compensation.
3.11 Subd. 6.Unlicensed staff minimum wage.Beginning on July 1, 2026, notwithstanding
3.12any law to the contrary, a school district or charter school must pay every covered unlicensed
3.13staff member wages at a rate at least equal to the unlicensed staff wage threshold for that
3.14school year.
3.15 Subd. 7.Aid for unlicensed staff wages.(a) For fiscal year 2027 and later, a school
3.16district, charter school, intermediate school district, or cooperative unit under section
3.17123A.24, subdivision 2, is eligible for aid for unlicensed staff wages.
3.18 (b) The aid for each district equals the sum of the amounts calculated under paragraph
3.19(c).
3.20 (c) For each covered unlicensed staff member employed by the district on September
3.211, 2025, the commissioner must calculate the difference between: (1) the unlicensed staff
3.22wage threshold for the 2026-2027 school year; and (2) the covered staff member's hourly
3.23wage as of September 1, 2025. The amount calculated for a covered staff member under
3.24this paragraph must not be less than zero.
3.25 (d) The commissioner must recalculate each district's aid for unlicensed staff wages
3.26upon each inflationary adjustment of the wage threshold.
3.27 EFFECTIVE DATE.This section is effective July 1, 2025.
3.28 Sec. 2. REPORT ON SCHOOL HOURLY WORKERS.
3.29 Subdivision 1.Report.The Professional Educator Licensing and Standards Board must
3.30submit a report on hourly worker compensation to the legislative committees with jurisdiction
3.31over kindergarten through grade 12 education policy and finance by January 15, 2026. The
3.32report must be submitted in accordance with Minnesota Statutes, section 3.195.
3Sec. 2.
25-05292 as introduced03/28/25 REVISOR CR/EN 4.1 Subd. 2.Definitions.(a) For the purposes of this section, the following terms have the
4.2meanings given.
4.3 (b) "Hourly worker" means an employee of a school employer who:
4.4 (1) works at least 14 hours per week for at least 100 days in a school year in one position;
4.5 (2) is not required to hold a license issued by the Professional Educator Licensing and
4.6Standards Board or the Board of School Administrators; and
4.7 (3) regularly interacts with students as part of the employee's job duties.
4.8 (c) "Major job class" means the following classifications of hourly workers:
4.9 (1) special education paraprofessionals;
4.10 (2) other paraprofessionals;
4.11 (3) food services;
4.12 (4) transportation;
4.13 (5) clerical;
4.14 (6) operating and maintenance; and
4.15 (7) all other classifications.
4.16 (d) "School employer" means a school district, charter school, intermediate school
4.17district, cooperative unit under section 123A.24, subdivision 2, the Perpich Center for Arts
4.18Education, or the Minnesota State Academies.
4.19 Subd. 3.Data required.The report must contain the following information for each
4.20school employer for the 2024-2025 school year:
4.21 (1) the number of hourly workers employed;
4.22 (2) average hourly wage by major job class;
4.23 (3) the number of vacancies the school employer advertised at the beginning of the
4.24school year and the number of positions filled during the school year, by job class;
4.25 (4) the school employer contribution for health insurance for hourly workers;
4.26 (5) the hourly worker contribution for health insurance; and
4.27 (6) the number of hourly workers on the employer's health insurance.
4.28 EFFECTIVE DATE.This section is effective July 1, 2025.
4Sec. 2.
25-05292 as introduced03/28/25 REVISOR CR/EN