1.1 	A bill for an act
1.2 	relating to education finance; making changes to kindergarten through grade 12 
1.3 	education; providing funding for prekindergarten through grade 12 education; 
1.4 	modifying provisions for general education, education excellence, American Indian 
1.5 	education, teachers, special education, facilities, school nutrition, libraries, early 
1.6 	childhood, community education, and state agencies; making forecast adjustments; 
1.7 	requiring reports; appropriating money; amending Minnesota Statutes 2024, sections 
1.8 	122A.414, by adding a subdivision; 122A.4144; 122A.415, subdivisions 1, 4; 
1.9 	122A.63, subdivision 9; 122A.635; 122A.70, subdivisions 2, 3, 5, 5a, 6, by adding 
1.10 	a subdivision; 123B.84; 123B.86, subdivisions 1, 3; 123B.87; 123B.92, subdivision 
1.11 	1; 124D.111, subdivision 3; 124D.119, subdivision 1; 124D.83, subdivision 2; 
1.12 	124D.861, subdivision 4; 124D.862, subdivisions 1, 8; 124D.901, subdivisions 3, 
1.13 	4; 124D.98, subdivision 5, by adding subdivisions; 125A.76, subdivision 2a; 
1.14 	126C.05, subdivision 3; 126C.10, subdivisions 3, 3c; 126C.40, subdivision 1, by 
1.15 	adding a subdivision; 127A.45, subdivision 14; Laws 2023, chapter 18, section 4, 
1.16 	subdivisions 2, as amended, 3, as amended; Laws 2023, chapter 54, section 20, 
1.17 	subdivisions 7, as amended, 9, as amended, 17, as amended; Laws 2023, chapter 
1.18 	55, article 1, sections 36, subdivisions 2, as amended, 3, as amended, 4, as amended, 
1.19 	5, as amended, 7, as amended, 9, as amended; 37; article 2, section 64, subdivisions 
1.20 	2, as amended, 6, as amended, 23, as amended; article 5, section 64, subdivisions 
1.21 	3, as amended, 14, as amended, 15, as amended; article 7, section 18, subdivisions 
1.22 	2, as amended, 4, as amended, 7, as amended; article 8, section 19, subdivision 6, 
1.23 	as amended; article 9, section 18, subdivisions 4, as amended, 8, as amended; 
1.24 	article 11, section 11, subdivisions 2, as amended, 3, as amended, 5, as amended, 
1.25 	10, as amended; article 12, sections 17, subdivision 2, as amended; 19; Laws 2023, 
1.26 	chapter 63, article 9, section 8; Laws 2024, chapter 115, article 22, section 3; 
1.27 	repealing Minnesota Statutes 2024, sections 122A.414, subdivisions 1, 2, 3, 4, 4a, 
1.28 	5, 5a, 6, 7, 8, 9, 10, 11, 12, 13, 14a, 15, 16; 122A.4144; 122A.415, subdivisions 
1.29 	1, 3, 4, 5, 6, 7; 122A.4155; 122A.416; 122A.417; 123B.40; 123B.41, subdivisions 
1.30 	2, 3, 4, 5, 5a, 6, 7, 8, 12, 14, 15; 123B.42; 123B.43; 123B.44; 123B.45; 123B.46; 
1.31 	123B.47; 123B.48; 123B.86, subdivision 2; 123B.92, subdivision 9; 124D.98, 
1.32 	subdivisions 1, 2, 3, 4.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	GENERAL EDUCATION

2.4 	Section 1. Minnesota Statutes 2024, section 123B.84, is amended to read:
2.5 	123B.84 POLICY.
2.6 	In districts where the state provides aids for transportation it is in the public interest to 
2.7 	provide equality of treatment in transporting public school children of the state who are 
2.8 	required to attend elementary and secondary schools pursuant to chapter 120A, so that the 
2.9 	health, welfare and safety of the children, while using the public highways of the state, shall 
2.10 	be protected.
2.11 	School children attending any public schools, complying with section 120A.22, are 
2.12 	therefore entitled to the same rights and privileges relating to transportation.

2.13 	Sec. 2. Minnesota Statutes 2024, section 123B.86, subdivision 1, is amended to read:
2.14 		Subdivision 1.General provisions. A district shall provide equal transportation within 
2.15 	the district for all public school children to any public school when transportation is deemed 
2.16 	necessary by the school board because of distance or traffic condition in like manner and 
2.17 	form as provided in sections 123B.88 and 123B.92, when applicable.

2.18 	Sec. 3. Minnesota Statutes 2024, section 123B.86, subdivision 3, is amended to read:
2.19 		Subd. 3.Board control. (a) When transportation is provided, the scheduling of routes, 
2.20 	manner and method of transportation, control and discipline of school children and any 
2.21 	other matter relating thereto shall be within the sole discretion, control and management of 
2.22 	the board.
2.23 	(b) A school board and a nonpublic school may mutually agree to a written plan for the 
2.24 	board to provide nonpublic pupil transportation to nonpublic school students.
2.25 	(c) A school board that provides pupil transportation through the school's employees 
2.26 	may transport nonpublic school students according to the plan and retain the nonpublic 
2.27 	pupil transportation aid attributable to that plan. A nonpublic school may make a payment 
2.28 	to the school district to cover additional transportation services agreed to in the written plan 
2.29 	for nonpublic pupil transportation services not required under sections 123B.84 to 123B.87.
2.30 	(d) (b) A school board that contracts for pupil transportation services may enter into a 
2.31 	contractual arrangement with a school bus contractor according to the written plan adopted 
3.1 	by the school board and the nonpublic school to transport nonpublic school students and 
3.2 	retain the nonpublic pupil transportation aid attributable to that plan for the purposes of 
3.3 	paying the school bus contractor. A nonpublic school may make a payment to the school 
3.4 	district to cover additional transportation services agreed to in the written plan for nonpublic 
3.5 	pupil transportation services included in the contract that are not required under sections 
3.6 	123B.84 to 123B.87.
3.7 	(e) The school district must report the number of nonpublic school students transported 
3.8 	and the nonpublic pupil transportation expenditures incurred under paragraph (b) in the 
3.9 	form and manner specified by the commissioner.

3.10 	Sec. 4. Minnesota Statutes 2024, section 123B.87, is amended to read:
3.11 	123B.87 FUNDS AND AIDS.
3.12 		Subdivision 1.State aid. State aids made available or appropriated shall be for the equal 
3.13 	benefit of all public school children, and be disbursed in such manner as determined by the 
3.14 	board.
3.15 		Subd. 2.Boards may expend money. The board of any district may expend any moneys 
3.16 	in its treasury, whether received from state or any other source for the purpose of providing 
3.17 	equal transportation treatment of all public school children attending school.

3.18 	Sec. 5. Minnesota Statutes 2024, section 123B.92, subdivision 1, is amended to read:
3.19 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the terms 
3.20 	defined in this subdivision have the meanings given to them.
3.21 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
3.22 	categories" means the quotient obtained by dividing:
3.23 	(1) the sum of:
3.24 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
3.25 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
3.26 	(ii) an amount equal to one year's depreciation on the district's school bus fleet and 
3.27 	mobile units computed on a straight line basis at the rate of 15 percent per year for districts 
3.28 	operating a program under section 124D.128 for grades 1 to 12 for all students in the district 
3.29 	and 12-1/2 percent per year for other districts of the cost of the fleet, plus
3.30 	(iii) an amount equal to one year's depreciation on the district's type III vehicles, as 
3.31 	defined in section 169.011, subdivision 71, which must be used a majority of the time for 
4.1 	pupil transportation purposes, computed on a straight line basis at the rate of 20 percent per 
4.2 	year of the cost of the type three school buses by:
4.3 	(2) the number of pupils eligible for transportation in the regular category, as defined 
4.4 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause 
4.5 	(2).
4.6 	(b) "Transportation category" means a category of transportation service provided to 
4.7 	pupils as follows:
4.8 	(1) "Regular transportation" is:
4.9 	(i) transportation to and from school during the regular school year for resident elementary 
4.10 	pupils residing one mile or more from the public or nonpublic school they attend, and 
4.11 	resident secondary pupils residing two miles or more from the public or nonpublic school 
4.12 	they attend, excluding desegregation transportation and noon kindergarten transportation; 
4.13 	but with respect to transportation of pupils to and from nonpublic schools, only to the extent 
4.14 	permitted by sections 123B.84 to 123B.87;
4.15 	(ii) transportation of resident pupils to and from language immersion programs;
4.16 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between the 
4.17 	pupil's home and the child care provider and between the provider and the school, if the 
4.18 	home and provider are within the attendance area of the school;
4.19 	(iv) transportation to and from or board and lodging in another district, of resident pupils 
4.20 	of a district without a secondary school;
4.21 	(v) transportation to and from school during the regular school year required under 
4.22 	subdivision 3 for nonresident elementary pupils when the distance from the attendance area 
4.23 	border to the public school is one mile or more, and for nonresident secondary pupils when 
4.24 	the distance from the attendance area border to the public school is two miles or more, 
4.25 	excluding desegregation transportation and noon kindergarten transportation; and
4.26 	(vi) transportation of pregnant or parenting pupils to and from a program that was 
4.27 	established on or before January 1, 2018, or that is in operation on or after July 1, 2021, 
4.28 	that provides:
4.29 	(A) academic instruction;
4.30 	(B) at least four hours per week of parenting instruction; and
4.31 	(C) high-quality child care on site during the education day with the capacity to serve 
4.32 	all children of enrolled pupils.
5.1 	For the purposes of this paragraph, a district may designate a licensed day care facility, 
5.2 	school day care facility, respite care facility, the residence of a relative, or the residence of 
5.3 	a person or other location chosen by the pupil's parent or guardian, or an after-school program 
5.4 	for children operated by a political subdivision of the state, as the home of a pupil for part 
5.5 	or all of the day, if requested by the pupil's parent or guardian, and if that facility, residence, 
5.6 	or program is within the attendance area of the school the pupil attends.
5.7 	(2) "Excess transportation" is:
5.8 	(i) transportation to and from school during the regular school year for resident secondary 
5.9 	pupils residing at least one mile but less than two miles from the public or nonpublic school 
5.10 	they attend, and transportation to and from school for resident pupils residing less than one 
5.11 	mile from school who are transported because of full-service school zones, extraordinary 
5.12 	traffic, drug, or crime hazards; and
5.13 	(ii) transportation to and from school during the regular school year required under 
5.14 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
5.15 	border to the school is at least one mile but less than two miles from the public school they 
5.16 	attend, and for nonresident pupils when the distance from the attendance area border to the 
5.17 	school is less than one mile from the school and who are transported because of full-service 
5.18 	school zones, extraordinary traffic, drug, or crime hazards.
5.19 	(3) "Desegregation transportation" is transportation within and outside of the district 
5.20 	during the regular school year of pupils to and from schools located outside their normal 
5.21 	attendance areas under a plan for desegregation mandated by the commissioner or under 
5.22 	court order.
5.23 	(4) "Transportation services for pupils with disabilities" is:
5.24 	(i) transportation of pupils with disabilities who cannot be transported on a regular school 
5.25 	bus between home or a respite care facility and school;
5.26 	(ii) necessary transportation of pupils with disabilities from home or from school to 
5.27 	other buildings, including centers such as developmental achievement centers, hospitals, 
5.28 	and treatment centers where special instruction or services required by sections 125A.03 to 
5.29 	125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
5.30 	where services are provided;
5.31 	(iii) necessary transportation for resident pupils with disabilities required by sections 
5.32 	125A.12, and 125A.26 to 125A.48;
5.33 	(iv) board and lodging for pupils with disabilities in a district maintaining special classes;
6.1 	(v) transportation from one educational facility to another within the district for resident 
6.2 	pupils enrolled on a shared-time basis in educational programs, and necessary transportation 
6.3 	required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils with disabilities 
6.4 	who are provided special instruction and services on a shared-time basis or if resident pupils 
6.5 	are not transported, the costs of necessary travel between public and private schools or 
6.6 	neutral instructional sites by essential personnel employed by the district's program for 
6.7 	children with a disability;
6.8 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
6.9 	facilities when the pupil is boarded and lodged for educational purposes;
6.10 	(vii) transportation of pupils for a curricular field trip activity on a school bus equipped 
6.11 	with a power lift when the power lift is required by a student's disability or section 504 plan; 
6.12 	and
6.13 	(viii) services described in items (i) to (vii), when provided for pupils with disabilities 
6.14 	in conjunction with a summer instructional program that relates to the pupil's individualized 
6.15 	education program or in conjunction with a learning year program established under section 
6.16 	124D.128.
6.17 	For purposes of computing special education initial aid under section 125A.76, the cost 
6.18 	of providing transportation for children with disabilities includes (A) the additional cost of 
6.19 	transporting a student in a shelter care facility as defined in section 260C.007, subdivision 
6.20 	30, a student placed in a family foster home as defined in section 260C.007, subdivision 
6.21 	16b, a homeless student in another district to the school of origin, or a formerly homeless 
6.22 	student from a permanent home in another district to the school of origin but only through 
6.23 	the end of the academic year; and (B) depreciation on district-owned school buses purchased 
6.24 	after July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 
6.25 	according to paragraph (a), items (ii) and (iii). Depreciation costs included in the disabled 
6.26 	transportation category must be excluded in calculating the actual expenditure per pupil 
6.27 	transported in the regular and excess transportation categories according to paragraph (a). 
6.28 	For purposes of subitem (A), a school district may transport a child who does not have a 
6.29 	school of origin to the same school attended by that child's sibling, if the siblings are homeless 
6.30 	or in a shelter care facility.
6.31 	(5) "Nonpublic nonregular transportation" is:
6.32 	(i) transportation from one educational facility to another within the district for resident 
6.33 	pupils enrolled on a shared-time basis in educational programs, excluding transportation 
6.34 	for nonpublic pupils with disabilities under clause (4);
7.1 	(ii) transportation within district boundaries between a nonpublic school and a public 
7.2 	school or a neutral site for nonpublic school pupils who are provided pupil support services 
7.3 	pursuant to section 123B.44; and
7.4 	(iii) late transportation home from school or between schools within a district for 
7.5 	nonpublic school pupils involved in after-school activities.
7.6 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for educational 
7.7 	programs and services, including diagnostic testing, guidance and counseling services, and 
7.8 	health services. A mobile unit located off nonpublic school premises is a neutral site as 
7.9 	defined in section 123B.41, subdivision 13.

7.10 	Sec. 6. Minnesota Statutes 2024, section 126C.05, subdivision 3, is amended to read:
7.11 		Subd. 3.Compensation revenue pupil units. Compensation revenue pupil units must 
7.12 	be computed according to this subdivision.
7.13 	(a) The compensation revenue concentration percentage for each building in a district 
7.14 	equals the product of 100 times the ratio of:
7.15 	(1) the sum of the number of pupils enrolled in the building eligible to receive free meals 
7.16 	plus one-half of the pupils eligible to receive reduced-priced meals on October 1 of the 
7.17 	previous fiscal year; to
7.18 	(2) the number of pupils enrolled in the building on October 1 of the previous fiscal 
7.19 	year.
7.20 	(b) The compensation revenue pupil weighting factor for a building equals the lesser of 
7.21 	one or the quotient obtained by dividing the building's compensation revenue concentration 
7.22 	percentage by 80.0.
7.23 	(c) The compensation revenue pupil units for a building equals the product of:
7.24 	(1) the sum of the number of pupils enrolled in the building eligible to receive free meals 
7.25 	and one-half of the pupils eligible to receive reduced-priced meals on October 1 of the 
7.26 	previous fiscal year; times
7.27 	(2) the compensation revenue pupil weighting factor for the building; times
7.28 	(3) .60.
7.29 	(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under 
7.30 	section 142D.08, charter schools, and contracted alternative programs in the first year of 
7.31 	operation, compensation revenue pupil units shall be computed using data for the current 
8.1 	fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative 
8.2 	program begins operation after October 1, compensatory revenue pupil units shall be 
8.3 	computed based on pupils enrolled on an alternate date determined by the commissioner, 
8.4 	and the compensation revenue pupil units shall be prorated based on the ratio of the number 
8.5 	of days of student instruction to 170 days.
8.6 	(e) The percentages in this subdivision must be based on the count of individual pupils 
8.7 	and not on a building average or minimum.
8.8 	(f) Notwithstanding paragraphs (a) to (e), for revenue in fiscal year 2025 only, the 
8.9 	compensation revenue pupil units for each building in a district equals the greater of the 
8.10 	building's actual compensation revenue pupil units computed according to paragraphs (a) 
8.11 	to (e) for revenue in fiscal year 2025, or the building's actual compensation revenue pupil 
8.12 	units computed according to paragraphs (a) to (e) for revenue in fiscal year 2024.
8.13 	(g) Notwithstanding paragraphs (a) to (e), for revenue in fiscal year 2026 only, the 
8.14 	compensation revenue pupil units for each building in a district equals the greater of the 
8.15 	building's actual compensation revenue pupil units computed according to paragraphs (a) 
8.16 	to (e) for revenue in fiscal year 2026, or the building's actual compensation revenue pupil 
8.17 	units computed according to paragraphs (a) to (e) for revenue in fiscal year 2024.

8.18 	Sec. 7. Minnesota Statutes 2024, section 126C.10, subdivision 3, is amended to read:
8.19 		Subd. 3.Compensatory education revenue. (a) A district's compensatory revenue 
8.20 	equals the sum of its compensatory revenue for each building in the district and the amounts 
8.21 	designated under Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
8.22 	8, for fiscal year 2017. Revenue shall be paid to the district and must be allocated according 
8.23 	to section 126C.15, subdivision 2.
8.24 	(b) For fiscal years 2024 and, 2025, and 2026, the compensatory education revenue for 
8.25 	each building in the district equals the formula allowance minus $839 times the compensation 
8.26 	revenue pupil units computed according to section 126C.05, subdivision 3.
8.27 	(c) For fiscal year 2026 2027 and later, the compensatory education revenue for each 
8.28 	building in the district equals its compensatory pupils multiplied by the building 
8.29 	compensatory allowance.
8.30 	(d) When the district contracting with an alternative program under section 124D.69 
8.31 	changes prior to the start of a school year, the compensatory revenue generated by pupils 
8.32 	attending the program shall be paid to the district contracting with the alternative program 
9.1 	for the current school year, and shall not be paid to the district contracting with the alternative 
9.2 	program for the prior school year.
9.3 	(e) When the fiscal agent district for an area learning center changes prior to the start of 
9.4 	a school year, the compensatory revenue shall be paid to the fiscal agent district for the 
9.5 	current school year, and shall not be paid to the fiscal agent district for the prior school year.
9.6 	(f) Notwithstanding paragraph (c), for fiscal year 2026, if the sum of the amounts 
9.7 	calculated under paragraph (c) is less than $838,947,000, the commissioner must 
9.8 	proportionately increase the revenue to each building until the total statewide revenue 
9.9 	calculated for each building equals $838,947,000.
9.10 	(g) Notwithstanding paragraph (c), for fiscal year 2027 and later, if the sum of the 
9.11 	amounts calculated under paragraph (c) is less than $857,152,000, the commissioner must 
9.12 	proportionately increase the revenue to each building until the total statewide revenue 
9.13 	calculated for each building equals $857,152,000.

9.14 	Sec. 8. Minnesota Statutes 2024, section 126C.10, subdivision 3c, is amended to read:
9.15 		Subd. 3c.Statewide compensatory allowance.  For fiscal year 2026 2027, the statewide 
9.16 	compensatory allowance is $6,734 $6,904. For fiscal year 2027 2028 and later, the statewide 
9.17 	compensatory allowance equals the statewide compensatory allowance in effect for the 
9.18 	prior fiscal year times the ratio of the formula allowance under section 126C.10, subdivision 
9.19 	2, for the current fiscal year to the formula allowance under section 126C.10, subdivision 
9.20 	2, for the prior fiscal year, rounded to the nearest whole dollar.

9.21 	Sec. 9. Minnesota Statutes 2024, section 127A.45, subdivision 14, is amended to read:
9.22 		Subd. 14.Nonpublic aids. The state shall pay aid according to sections 123B.40 to 
9.23 	123B.48 for pupils attending nonpublic schools as follows:
9.24 	(1) an advance payment by November 30 equal to the current year aid payment percentage 
9.25 	of the estimated entitlement for the current fiscal year; and
9.26 	(2) a final payment by October 31 of the following fiscal year, adjusted for actual data.
9.27 	If a payment advance to meet cash flow needs is requested by a district and approved 
9.28 	by the commissioner, the state shall pay nonpublic pupil transportation aid according to 
9.29 	section 123B.92 by October 31. Beginning in fiscal year 2026 and later, no payments will 
9.30 	be made under this subdivision. No amounts remaining from the fiscal year 2025 entitlement 
9.31 	may be paid after June 30, 2025.

10.1 	Sec. 10. Laws 2023, chapter 55, article 1, section 37, the effective date, is amended to 
10.2 	read:

10.3 	EFFECTIVE DATE. Paragraph (a) is effective for revenue for fiscal year 2026 2027. 
10.4 	Paragraph (b) is effective May 28, 2023. Paragraph (c) is effective the day following final 
10.5 	enactment.

10.6 	Sec. 11. COMPENSATORY REVENUE WORKING GROUP.
 10.7 		Subdivision 1.Compensatory revenue working group established. A compensatory 
10.8 	revenue working group of ten members is established to examine compensatory revenue 
10.9 	formula options and make a recommendation to the commissioner of education.
10.10 		Subd. 2.Membership and appointments. (a) Appointed members of the working group 
10.11 	must meet one or more of the following qualifications:
10.12 	(1) professional experience in kindergarten through grade 12 education funding support 
10.13 	for Minnesota Local Education Agencies;
10.14 	(2) professional experience in areas related to equity in education;
10.15 	(3) hold a current Minnesota superintendent's license;
10.16 	(4) professional experience working with the current compensatory revenue funding 
10.17 	components;
10.18 	(5) national recognition in demographic and economic trends and student well-being;
10.19 	(6) demonstrated development of education funding formula in rural districts;
10.20 	(7) demonstrated development of education funding formula in metropolitan districts;
10.21 	(8) professional experience working with advocacy organizations that address issues 
10.22 	related to hunger and low-income students; or
10.23 	(9) professional experience representing an educators union.
10.24 	(b) Working group members must be appointed by the commissioner of education no 
10.25 	later than September 15, 2025. The first meeting of the working group must be convened 
10.26 	by the commissioner of education no later than October 1, 2025. Members of the working 
10.27 	group are eligible for per diem compensation in accordance with Minnesota Statutes, section 
10.28 	15.059, subdivision 3.
10.29 	(c) The Department of Education must provide staff, technical assistance, and 
10.30 	organizational support for the working group. The Department of Children, Youth, and 
11.1 	Families; the Department of Human Services; and Minnesota Management and Budget may 
11.2 	provide staff, technical assistance, and organizational support for the working group.
11.3 		Subd. 3.Duties. The working group must review compensatory revenue formula models 
11.4 	presented by the Department of Education. The working group must evaluate formula 
11.5 	components and projected outcomes of compensatory revenue distribution. The working 
11.6 	group must make a final recommendation for the compensatory revenue formula to the 
11.7 	commissioner of education by February 15, 2026.
11.8 		Subd. 4.Report; expiration. (a) The commissioner of education must report findings 
11.9 	of the working group and recommendations for a compensatory revenue funding formula 
11.10 	to the legislative committees with jurisdiction over education finance by February 28, 2026.
11.11 	(b) The working group expires February 28, 2026, or upon submission of the report 
11.12 	required under paragraph (a), whichever is earlier.

11.13 	Sec. 12. APPROPRIATIONS.
 11.14 		Subdivision 1.Department of Education. The sums indicated in this section are 
11.15 	appropriated from the general fund to the Department of Education for the fiscal years 
11.16 	designated.
11.17 		Subd. 2.General education aid. (a) For general education aid under Minnesota Statutes, 
11.18 	section 126C.13, subdivision 4:

11.19		$
	8,456,343,000
	.....
	2026
	
11.20		$
	8,658,266,000
	.....
	2027
	
11.21 	(b) The 2026 appropriation includes $782,979,000 for 2025 and $7,673,364,000 for 
11.22 	2026.
11.23 	(c) The 2027 appropriation includes $801,424,000 for 2026 and $7,856,842,000 for 
11.24 	2027.
11.25 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
11.26 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
11.27 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

11.28		$
	25,000
	.....
	2026
	
11.29		$
	27,000
	.....
	2027
	
11.30 		Subd. 4.Abatement aid. (a) For abatement aid under Minnesota Statutes, section 
11.31 	127A.49:

12.1		$
	1,952,000
	.....
	2026
	
12.2		$
	2,201,000
	.....
	2027
	
12.3 	(b) The 2026 appropriation includes $140,000 for 2025 and $1,812,000 for 2026.
12.4 	(c) The 2027 appropriation includes $201,000 for 2026 and $2,000,000 for 2027.
12.5 		Subd. 5.Consolidation transition aid. (a) For districts consolidating under Minnesota 
12.6 	Statutes, section 123A.485:

12.7		$
	270,000
	.....
	2026
	
12.8		$
	165,000
	.....
	2027
	
12.9 	(b) The 2026 appropriation includes $0 for 2025 and $270,000 for 2026.
12.10 	(c) The 2027 appropriation includes $30,000 for 2026 and $135,000 for 2027.
12.11 		Subd. 6.One-room schoolhouse. (a) For aid to Independent School District No. 690, 
12.12 	Warroad, to operate the Angle Inlet School:

12.13		$
	65,000
	.....
	2026
	
12.14		$
	65,000
	.....
	2027
	
12.15 	(b) This aid is 100 percent payable in the current year.
12.16 		Subd. 7.Career and technical aid. (a) For career and technical aid under Minnesota 
12.17 	Statutes, section 124D.4531, subdivision 1b:

12.18		$
	531,000
	.....
	2026
	
12.19		$
	391,000
	.....
	2027
	
12.20 	(b) The 2026 appropriation includes $85,000 for 2025 and $446,000 for 2026.
12.21 	(c) The 2027 appropriation includes $49,000 for 2026 and $342,000 for 2027.
12.22 		Subd. 8.Pregnant and parenting pupil transportation reimbursement. (a) To 
12.23 	reimburse districts for transporting pregnant or parenting pupils under Minnesota Statutes, 
12.24 	section 123B.92, subdivision 1, paragraph (b), clause (1), item (vi):

12.25		$
	55,000
	.....
	2026
	
12.26		$
	55,000
	.....
	2027
	
12.27 	(b) To receive reimbursement, districts must apply in the form and manner prescribed 
12.28 	by the commissioner. If the appropriation is insufficient, the commissioner must prorate 
12.29 	the amount paid to districts seeking reimbursement.
12.30 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
13.1 		Subd. 9.Career and technical education consortium. (a) To the Minnesota Service 
13.2 	Cooperatives for career and technical education consortium grants under Minnesota Statutes, 
13.3 	section 124D.4536:

13.4		$
	5,000,000
	.....
	2026
	
13.5		$
	5,000,000
	.....
	2027
	
13.6 	(b) If the appropriation in fiscal year 2026 is insufficient, the appropriation in fiscal year 
13.7 	2027 is available.
13.8 	(c) Up to three percent of the appropriation is available for grant administration.
13.9 	(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
13.10 		Subd. 10.Emergency medical training. (a) For grants to offer high school students 
13.11 	courses in emergency medical services:

13.12		$
	500,000
	.....
	2026
	
13.13		$
	500,000
	.....
	2027
	
13.14 	(b) A school district, charter school, Tribal contract school, or cooperative unit under 
13.15 	Minnesota Statutes, section 123A.24, subdivision 2, may apply for a grant under this section 
13.16 	to offer enrolled students emergency medical services courses approved by the Minnesota 
13.17 	Emergency Medical Services Regulatory Board to prepare students to take the emergency 
13.18 	medical technician certification test, including an emergency medical services course that 
13.19 	is a prerequisite to an emergency medical technician course.
13.20 	(c) A grant recipient may use grant funds to partner with a district, charter school, 
13.21 	cooperative unit, postsecondary institution, political subdivision, or entity with expertise in 
13.22 	emergency medical services, including health systems, hospitals, ambulance services, and 
13.23 	health care providers to offer an emergency medical services course.
13.24 	(d) Eligible uses of grant funds include teacher salaries, transportation, equipment costs, 
13.25 	emergency medical technician certification test fees, and student background checks.
13.26 	(e) To the extent practicable, the commissioner must award at least half of the grant 
13.27 	funds to applicants outside of the seven-county metropolitan area, and at least 30 percent 
13.28 	of the grant funds to applicants with high concentrations of students of color.
13.29 	(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
13.30 	(g) Up to $50,000 each year is available for grant administration.
13.31 		Subd. 11.Area learning center transportation aid. (a) For area learning center 
13.32 	transportation aid under Minnesota Statutes, section 123B.92, subdivision 11:

14.1		$
	1,000,000
	.....
	2026
	
14.2		$
	1,000,000
	.....
	2027
	
14.3 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
14.4 	(c) This aid is 100 percent payable in the current year.
14.5 		Subd. 12.Unemployment aid for hourly workers over the summer term. (a) For 
14.6 	unemployment aid under Minnesota Statutes, section 124D.995:

14.7		$
	30,000,000
	.....
	2026
	
14.8 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
14.9 	124D.995.
14.10 	(c) This is a onetime appropriation.
14.11 		Subd. 13.Compensatory revenue work group. (a) To administer the compensatory 
14.12 	revenue work group:

14.13		$
	94,000
	.....
	2026
	
14.14 	(b) This is a onetime appropriation.
14.15 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

14.16 	Sec. 13. REVISOR INSTRUCTION.
 14.17 	The revisor of statutes must substitute the term "district, charter school, or Tribal school" 
14.18 	for "district," "school district," "district or charter school," or "school district or charter 
14.19 	school"; the term "district, charter school, and Tribal school" for "district and charter school" 
14.20 	or "school district and charter school"; and similar singular or plural phrases wherever the 
14.21 	terms appear in Minnesota Statutes for any statutorily named competitive grant program in 
14.22 	Minnesota Statutes, chapters 120A to 129C, or a competitive grant program in Laws 2023, 
14.23 	chapter 55, or Laws 2024, chapter 115, whose eligible grantees include school districts and 
14.24 	charter schools, to name Tribal contract schools as eligible grantees. The revisor may also 
14.25 	make any grammatical changes needed related to the change in terms.

14.26 	Sec. 14. REPEALER.
 14.27 	Minnesota Statutes 2024, sections 123B.40; 123B.41, subdivisions 2, 3, 4, 5, 5a, 6, 7, 
14.28 	8, 12, 14, and 15; 123B.42; 123B.43; 123B.44; 123B.45; 123B.46; 123B.47; 123B.48; 
14.29 	123B.86, subdivision 2; and 123B.92, subdivision 9, are repealed.

15.1 	ARTICLE 2
15.2 	EDUCATION EXCELLENCE

15.3 	Section 1. Minnesota Statutes 2024, section 124D.861, subdivision 4, is amended to read:
15.4 		Subd. 4.Timeline and implementation. A board must approve its plan and submit it 
15.5 	to the department by March 15. If a district that is part of a multidistrict council applies for 
15.6 	revenue for a plan, the individual district shall not receive revenue unless it ratifies the plan 
15.7 	adopted by the multidistrict council. Each plan has a term of three years. For the 2014-2015 
15.8 	school year, an eligible district under this section must submit its plan to the commissioner 
15.9 	for review by March 15, 2014. For the 2013-2014 school year only, an eligible district may 
15.10 	continue to implement its current plan until the commissioner approves a new plan under 
15.11 	this section. Progress reports identified in subdivision 3 must be submitted to the 
15.12 	commissioner of education by October 15 annually.

15.13 	Sec. 2. Minnesota Statutes 2024, section 124D.862, subdivision 1, is amended to read:
15.14 		Subdivision 1.Initial achievement and integration revenue. (a) An eligible district's 
15.15 	initial achievement and integration revenue equals the lesser of 100.3 percent of the district's 
15.16 	expenditures under the budget approved by the commissioner under section 124D.861, 
15.17 	subdivision 3, paragraph (c), excluding expenditures used to generate incentive revenue 
15.18 	under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil units for that 
15.19 	year times the ratio of the district's enrollment of protected students for the previous school 
15.20 	year to total enrollment for the previous school year and (2) the greater of zero or 66 percent 
15.21 	of the difference between the district's integration revenue for fiscal year 2013 and the 
15.22 	district's integration revenue for fiscal year 2014 under clause (1).
15.23 	(b) In each year, an amount equal to 0.3 1.3 percent of each district's initial achievement 
15.24 	and integration revenue for the second prior fiscal year is transferred to the department for 
15.25 	the oversight and accountability activities required under this section and section 124D.861.

15.26 	Sec. 3. Minnesota Statutes 2024, section 124D.862, subdivision 8, is amended to read:
15.27 		Subd. 8.Commissioner authority to withhold revenue. (a) The commissioner must 
15.28 	review the results of each district's integration and achievement plan by August January 1 
15.29 	at the end of the third year of implementing the plan and determine if the district met its 
15.30 	goals.
15.31 	(b) If a district met its goals, it may submit a new three-year plan to the commissioner 
15.32 	for review.
16.1 	(c) If a district has not met its goals, the commissioner must:
16.2 	(1) guide the district in the development of an improvement plan and timeline that 
16.3 	identifies strategies and practices designed to meet the district's goals under this section and 
16.4 	section 120B.11; and
16.5 	(2) direct the district to use up to 20 percent of the district's integration revenue, until 
16.6 	the district's goals are reached, to implement the improvement plan.

16.7 	Sec. 4. Minnesota Statutes 2024, section 124D.98, subdivision 5, is amended to read:
16.8 		Subd. 5.Literacy incentive aid uses. A school district must use its literacy incentive 
16.9 	aid to support implementation of evidence-based reading instruction. The following are 
16.10 	eligible uses of literacy incentive aid:
16.11 	(1) training for kindergarten through grade 3 teachers, early childhood educators, special 
16.12 	education teachers, reading intervention teachers working with students in kindergarten 
16.13 	through grade 12, curriculum directors, and instructional support staff that provide reading 
16.14 	instruction, on using approved evidence-based screening and progress monitoring tools;
16.15 	(2) evidence-based training using a training program approved by the Department of 
16.16 	Education under the Read Act;
16.17 	(3) employing or contracting with a literacy lead, as defined in section 120B.119;
16.18 	(4) employing an intervention specialist;
16.19 	(5) approved screeners, materials, training, and ongoing coaching to ensure reading 
16.20 	interventions under section 125A.56, subdivision 1, are evidence-based;
16.21 	(6) costs of substitute teachers to allow teachers to complete required training during 
16.22 	the teachers' contract day; and
16.23 	(7) stipends for teachers completing training required under section 120B.12.

16.24 	Sec. 5. Minnesota Statutes 2024, section 124D.98, is amended by adding a subdivision to 
16.25 	read:
16.26 		Subd. 6.Literacy incentive aid revenue. A district's literacy incentive aid revenue 
16.27 	equals the district's literacy incentive aid allowance multiplied by the district's average daily 
16.28 	membership for kindergarten through grade four for the previous fiscal year.

17.1 	Sec. 6. Minnesota Statutes 2024, section 124D.98, is amended by adding a subdivision to 
17.2 	read:
17.3 		Subd. 7.Statewide literacy incentive aid allowance. The statewide literacy incentive 
17.4 	aid allowance is $347.27 for fiscal year 2026, $351.30 for fiscal year 2027, $348.45 for 
17.5 	fiscal year 2028, and $348.54 for fiscal years 2029 and later.

17.6 	Sec. 7. Minnesota Statutes 2024, section 124D.98, is amended by adding a subdivision to 
17.7 	read:
17.8 		Subd. 8.Definitions. For the purposes of literacy incentive aid revenue and allowance 
17.9 	under subdivisions 6 and 7, the following terms have the meanings given:
17.10 	(1) "poverty concentration factor" means the ratio of: (i) the sum of the number of pupils 
17.11 	enrolled in the district eligible to receive free meals, plus one-half of the pupils eligible to 
17.12 	receive reduced-priced meals on October 1 of the previous fiscal year; to (ii) the number 
17.13 	of pupils enrolled in the district on October 1 of the previous fiscal year; and
17.14 	(2) "district literacy incentive aid allowance" means a district's poverty concentration 
17.15 	factor multiplied by the statewide literacy incentive aid allowance.

17.16 	Sec. 8. Minnesota Statutes 2024, section 124D.98, is amended by adding a subdivision to 
17.17 	read:
17.18 		Subd. 9.Free and reduced-price meals. The commissioner shall determine the number 
17.19 	of children eligible to receive either a free or reduced-price meal on October 1 each year 
17.20 	by means of direct certification or through the application of educational benefits. Children 
17.21 	enrolled in a district on October 1 and determined to be eligible to receive free or 
17.22 	reduced-price meals by December 15 of that school year shall be counted as eligible on 
17.23 	October 1 for purposes of subdivision 8. The commissioner may use federal definitions for 
17.24 	these purposes and may adjust these definitions as appropriate. The commissioner may 
17.25 	adopt reporting guidelines to assure accuracy of data counts and eligibility. Districts shall 
17.26 	use any guidelines adopted by the commissioner.

17.27 	Sec. 9. APPROPRIATIONS.
 17.28 		Subdivision 1.Department of Education. The sums indicated in this section are 
17.29 	appropriated from the general fund to the Department of Education for the fiscal years 
17.30 	designated.
18.1 		Subd. 2.Achievement and integration aid. (a) For achievement and integration aid 
18.2 	under Minnesota Statutes, section 124D.862:

18.3		$
	85,153,000
	.....
	2026
	
18.4		$
	84,996,000
	.....
	2027
	
18.5 	(b) The 2026 appropriation includes $8,431,000 for 2025 and $76,722,000 for 2026.
18.6 	(c) The 2027 appropriation includes $8,525,000 for 2026 and $76,471,000 for 2027.
18.7 		Subd. 3.Charter school building lease aid. (a) For building lease aid under Minnesota 
18.8 	Statutes, section 124E.22:

18.9		$
	96,733,000
	.....
	2026
	
18.10		$
	99,829,000
	.....
	2027
	
18.11 	(b) The 2026 appropriation includes $9,400,000 for 2025 and $87,333,000 for 2026.
18.12 	(c) The 2027 appropriation includes $9,703,000 for 2026 and $90,126,000 for 2027.
18.13 		Subd. 4.College entrance examination reimbursement. (a) To reimburse districts for 
18.14 	the costs of college entrance examination fees for students who are eligible for free or 
18.15 	reduced-price meals who take the ACT or SAT test under Minnesota Statutes, section 
18.16 	120B.30, subdivision 16:

18.17		$
	1,011,000
	.....
	2026
	
18.18		$
	1,011,000
	.....
	2027
	
18.19 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
18.20 		Subd. 5.COMPASS and MTSS. (a) To support the development and implementation 
18.21 	of the MTSS framework and the Collaborative Minnesota Partnerships to Advance Student 
18.22 	Success (COMPASS) school improvement model:

18.23		$
	13,500,000
	.....
	2026
	
18.24		$
	13,500,000
	.....
	2027
	
18.25 	(b) Of this amount, $5,000,000 each year is to support implementation of MTSS and 
18.26 	COMPASS. Funds must be used to support increased capacity at the Department of Education 
18.27 	and the Minnesota service cooperatives for implementation supports.
18.28 	(c) Of this amount, $5,000,000 each year is reserved for grants to school districts, charter 
18.29 	schools, Tribal contract schools, and cooperative units as defined in Minnesota Statutes, 
18.30 	section 123A.24, subdivision 2, for implementation of MTSS, including: hiring local MTSS 
18.31 	coordinators; deferring costs for personnel to participate in cohort activities and professional 
18.32 	learning; and piloting the Department of Education One Plan, the consolidation of multiple 
19.1 	reporting structures to streamline various applications, reports, and submissions by school 
19.2 	districts and charter schools. Up to five percent of this amount is available for program and 
19.3 	grant administration.
19.4 	(d) Of this amount, $3,000,000 each year must be used to develop a regional network 
19.5 	focusing on mathematics to provide dedicated mathematics trainers and coaches to train 
19.6 	regional support staff from the Minnesota service cooperatives and to support school leaders 
19.7 	and teachers to implement evidence-based instructional strategies in mathematics. Funds 
19.8 	may also be used to host an annual mathematics standards-based instructional institute.
19.9 	(e) Of this amount, $500,000 each year is for the University of Minnesota Center for 
19.10 	Applied  Research and Educational Improvement to support implementation and evaluation 
19.11 	of the MTSS framework.
19.12 	(f) Support for school districts, charter schools, and cooperative units under this 
19.13 	subdivision may include but is not limited to:
19.14 	(1) partnering with the Minnesota Service Cooperatives to support districts in 
19.15 	implementing COMPASS to support schools in the areas of literacy, math, social-emotional 
19.16 	learning, and mental health using the MTSS framework;
19.17 	(2) providing support to districts and charter schools identified under Minnesota Statutes, 
19.18 	section 120B.11;
19.19 	(3) providing support to districts and charter schools to streamline various applications, 
19.20 	reports, and submissions to the Department of Education through One Plan;
19.21 	(4) providing training, guidance, and implementation resources for MTSS, including a 
19.22 	universal screening process approved by the Department of Education to identify students 
19.23 	who may be at risk of experiencing academic, behavioral, and social-emotional development 
19.24 	difficulties;
19.25 	(5) providing guidance to convene school-based teams to analyze data provided by 
19.26 	screenings and resources for related identification, instruction, and intervention methods;
19.27 	(6) dyslexia screening and interventions that are evidence-based;
19.28 	(7) requiring school districts and charter schools to provide parents of students identified 
19.29 	in screenings with notice of screening findings and related support information;
19.30 	(8) requiring districts and charter schools to provide at-risk students with interventions 
19.31 	and to monitor the effectiveness of these interventions and student progress; and
19.32 	(9) developing and annually reporting findings regarding the implementation of MTSS.
20.1 	(g) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
20.2 		Subd. 6.Computer science education advancement. (a) For computer science 
20.3 	advancement:

20.4		$
	500,000
	.....
	2026
	
20.5		$
	500,000
	.....
	2027
	
20.6 	(b) Of this amount, $150,000 is for the computer science supervisor.
20.7 	(c) Eligible uses of the appropriation include expenses related to the implementation of 
20.8 	Laws 2023, chapter 55, article 2, section 61, and expenses related to the development, 
20.9 	advancement, and promotion of kindergarten through grade 12 computer science education.
20.10 	(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
20.11 		Subd. 7.Concurrent enrollment aid. (a) For concurrent enrollment aid under Minnesota 
20.12 	Statutes, section 124D.091:

20.13		$
	4,000,000
	.....
	2026
	
20.14		$
	4,000,000
	.....
	2027
	
20.15 	(b) If the appropriation is insufficient, the commissioner must proportionately reduce 
20.16 	the aid payment to each school district.
20.17 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
20.18 		Subd. 8.Ethnic studies community consultation. To consult with community members 
20.19 	throughout Minnesota on the development of ethnic studies curricula, resources, and 
20.20 	implementation support:

20.21		$
	150,000
	.....
	2026
	
20.22		$
	150,000
	.....
	2027
	
20.23 		Subd. 9.Ethnic studies school grants. (a) For competitive grants to school districts, 
20.24 	charter schools, and Tribal contract schools to develop, evaluate, and implement ethnic 
20.25 	studies courses:

20.26		$
	700,000
	.....
	2026
	
20.27		$
	700,000
	.....
	2027
	
20.28 	(b) The commissioner must consult with the Ethnic Studies Working Group to develop 
20.29 	criteria for the grants.
20.30 	(c) Up to five percent of the appropriation is available for grant administration.
20.31 	(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
21.1 		Subd. 10.Examination fees; teacher training and support programs. (a) For students' 
21.2 	advanced placement and international baccalaureate examination fees under Minnesota 
21.3 	Statutes, section 120B.13, subdivision 3, and for training and related costs for teachers and 
21.4 	other interested educators under Minnesota Statutes, section 120B.13, subdivision 1:

21.5		$
	4,500,000
	.....
	2026
	
21.6		$
	4,500,000
	.....
	2027
	
21.7 	(b) The advanced placement program shall receive 75 percent of the appropriation each 
21.8 	year and the international baccalaureate program shall receive 25 percent of the appropriation 
21.9 	each year. The department, in consultation with representatives of the advanced placement 
21.10 	and international baccalaureate programs selected by the Advanced Placement Advisory 
21.11 	Council and International Baccalaureate Minnesota, respectively, shall determine the amounts 
21.12 	of the expenditures each year for examination fees, training, and support programs for each 
21.13 	program.
21.14 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least $500,000 
21.15 	each year is for teachers to attend subject matter summer training programs and follow-up 
21.16 	support workshops approved by the advanced placement or international baccalaureate 
21.17 	programs. The amount of the subsidy for each teacher attending an advanced placement or 
21.18 	international baccalaureate summer training program or workshop shall be the same. The 
21.19 	commissioner shall determine the payment process and the amount of the subsidy.
21.20 	(d) The commissioner shall pay all examination fees for all students of low-income 
21.21 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent funds 
21.22 	are available, shall also pay examination fees for students sitting for an advanced placement 
21.23 	examination, international baccalaureate examination, or both.
21.24 	(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
21.25 		Subd. 11.Full-service community schools. (a) For grants to plan or expand the 
21.26 	full-service community schools program under Minnesota Statutes, section 124D.231:

21.27		$
	5,000,000
	.....
	2026
	
21.28		$
	5,000,000
	.....
	2027
	
21.29 	(b) Of this amount, priority must be given to programs in the following order:
21.30 	(1) current grant recipients under Minnesota Statutes, section 124D.231;
21.31 	(2) schools identified as low-performing under the federal Every Student Succeeds Act; 
21.32 	and
21.33 	(3) any other applicants.
22.1 	(c) Up to two percent of the appropriation is available for grant administration.
22.2 	(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
22.3 		Subd. 12.Grants to increase science, technology, engineering, and math course 
22.4 	offerings. (a) For grants to schools to encourage low-income and other underserved students 
22.5 	to participate in advanced placement and international baccalaureate programs according 
22.6 	to Minnesota Statutes, section 120B.132:

22.7		$
	250,000
	.....
	2026
	
22.8		$
	250,000
	.....
	2027
	
22.9 	(b) To the extent practicable, the commissioner must distribute grant funds equitably 
22.10 	among geographic areas in the state, including to schools located in greater Minnesota and 
22.11 	in the seven-county metropolitan area.
22.12 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
22.13 	(d) Up to ten percent of the grant amount is available for grant administration and 
22.14 	monitoring.
22.15 		Subd. 13.Implementation of education on the Holocaust, genocide of Indigenous 
22.16 	Peoples, and other genocides. For implementation of requirements for education on the 
22.17 	Holocaust, genocide of Indigenous Peoples, and other genocides under Minnesota Statutes, 
22.18 	section 120B.252:

22.19		$
	75,000
	.....
	2026
	
22.20		$
	75,000
	.....
	2027
	
22.21 		Subd. 14.Interdistrict desegregation or integration transportation grants. For 
22.22 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
22.23 	section 124D.87:

22.24		$
	18,161,000
	.....
	2026
	
22.25		$
	20,088,000
	.....
	2027
	
22.26 		Subd. 15.Literacy incentive aid. (a) For literacy incentive aid under Minnesota Statutes, 
22.27 	section 124D.98:

22.28		$
	40,616,000
	.....
	2026
	
22.29		$
	40,890,000
	.....
	2027
	
22.30 	(b) The 2026 appropriation includes $4,057,000 for 2025 and $36,559,000 for 2026.
22.31 	(c) The 2027 appropriation includes $4,062,000 for 2026 and $36,828,000 for 2027.
23.1 		Subd. 16.Minnesota Center for the Book programming. (a) For grants to the entity 
23.2 	designated by the Library of Congress as the Minnesota Center for the Book to provide 
23.3 	statewide programming related to the Minnesota Book Awards and for additional 
23.4 	programming throughout the state related to the Center for the Book designation:

23.5		$
	200,000
	.....
	2026
	
23.6		$
	200,000
	.....
	2027
	
23.7 	(b) Up to three percent of the appropriation is available for grant administration.
23.8 		Subd. 17.Minnesota Independence College and Community. (a) For transfer to the 
23.9 	Office of Higher Education for grants to Minnesota Independence College and Community 
23.10 	for tuition reduction and institutional support:

23.11		$
	625,000
	.....
	2026
	
23.12		$
	625,000
	.....
	2027
	
23.13 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
23.14 	(c) By January 15 of each year, Minnesota Independence College and Community must 
23.15 	submit a report detailing expenditures, activities, and outcomes to the commissioner and 
23.16 	the chairs and ranking minority members of the legislative committees with jurisdiction 
23.17 	over kindergarten through grade 12 education.
23.18 		Subd. 18.Minnesota math corps. (a) For the Minnesota math corps program under 
23.19 	Minnesota Statutes, section 124D.42, subdivision 9:

23.20		$
	1,000,000
	.....
	2026
	
23.21		$
	1,000,000
	.....
	2027
	
23.22 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
23.23 		Subd. 19.Minnesota Principals Academy. (a) For grants to the University of Minnesota 
23.24 	College of Education and Human Development for the operation of the Minnesota Principals 
23.25 	Academy:

23.26		$
	200,000
	.....
	2026
	
23.27		$
	200,000
	.....
	2027
	
23.28 	(b) Of these amounts, $50,000 must be used to pay the costs of attendance for principals 
23.29 	and school leaders from schools identified for intervention under the state's accountability 
23.30 	system as implemented to comply with the federal Every Student Succeeds Act. To the 
23.31 	extent funds are available, the Department of Education is encouraged to use up to $200,000 
23.32 	of federal Title II funds to support additional participation in the Principals Academy by 
24.1 	principals and school leaders from schools identified for intervention under the state's 
24.2 	accountability system as implemented to comply with the federal Every Student Succeeds 
24.3 	Act.
24.4 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
24.5 		Subd. 20.Museums and education centers. (a) For grants to museums and education 
24.6 	centers:

24.7		$
	1,791,000
	.....
	2026
	
24.8		$
	1,791,000
	.....
	2027
	
24.9 	(b) $500,000 each year is for the Minnesota Children's Museum.
24.10 	(c) $50,000 each year is for the Children's Museum of Rochester.
24.11 	(d) $41,000 each year is for the Minnesota Academy of Science.
24.12 	(e) $100,000 each year is for The Bakken Museum, Minneapolis.
24.13 	(f) $60,000 each year is for the Headwaters Science Center.
24.14 	(g) $100,000 each year is for The Works Museum, Bloomington.
24.15 	(h) $100,000 each year is for the WonderTrek Children's Museum, Brainerd-Baxter.
24.16 	(i) $100,000 each year is for the Otter Cove Children's Museum, Fergus Falls.
24.17 	(j) $100,000 each year is for the Children's Discovery Museum, Grand Rapids.
24.18 	(k) $100,000 each year is for the Wheel and Cog Children's Museum, Hutchinson.
24.19 	(l) $100,000 each year is for the Village Children's Museum, Willmar.
24.20 	(m) $110,000 each year is for the Duluth Children's Museum, Duluth.
24.21 	(n) $110,000 each year is for the Children's Museum of Southern Minnesota, Mankato.
24.22 	(o) $110,000 each year is for the Great River Children's Museum, St. Cloud.
24.23 	(p) $110,000 each year is for the Children's Discovery Museum, Breckenridge.
24.24 	(q) A recipient of a grant under this subdivision must use the funds to encourage and 
24.25 	increase access for historically underserved communities.
24.26 	(r) Up to three percent of the appropriation is available for grant administration.
24.27 	(s) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
24.28 		Subd. 21.Nonexclusionary discipline. (a) For grants to school districts and charter 
24.29 	schools to provide training for school staff on nonexclusionary disciplinary practices:

25.1		$
	1,750,000
	.....
	2026
	
25.2		$
	1,750,000
	.....
	2027
	
25.3 	(b) Grants must be used to develop training and to work with schools to train staff on 
25.4 	nonexclusionary disciplinary practices that maintain the respect, trust, and attention of 
25.5 	students and help keep students in classrooms. These funds may also be used for grant 
25.6 	administration.
25.7 	(c) Eligible grantees include school districts, charter schools, Tribal charter schools, 
25.8 	intermediate school districts, and cooperative units as defined in section 123A.24, subdivision 
25.9 	2.
25.10 	(d) Up to five percent of the appropriation is available for grant administration.
25.11 	(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
25.12 		Subd. 22.P-TECH schools. (a) For P-TECH implementation grants under Minnesota 
25.13 	Statutes, section 124D.093, subdivision 5:

25.14		$
	791,000
	.....
	2026
	
25.15		$
	791,000
	.....
	2027
	
25.16 	(b) The amount in paragraph (a) is for a grant to a public-private partnership that includes 
25.17 	Independent School District No. 535, Rochester.
25.18 	(c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the department 
25.19 	may retain money from this appropriation for administrative costs under Minnesota Statutes, 
25.20 	section 124D.093, subdivision 5.
25.21 	(d) This appropriation is available until June 30, 2029.
25.22 	(e) The department may award start-up and mentoring and technical assistance grants 
25.23 	beginning in fiscal year 2026. Of the amount in fiscal year 2026, at least $500,000 is for a 
25.24 	support grant to a public-private partnership that includes Independent School District No. 
25.25 	535, Rochester. Of the amount in fiscal year 2027, at least $250,000 is for a support grant 
25.26 	to a public-private partnership that includes Independent School District No. 535, Rochester.
25.27 		Subd. 23.Paraprofessional training. (a) For compensation associated with paid 
25.28 	orientation and professional development for paraprofessionals under Minnesota Statutes, 
25.29 	section 121A.642:

25.30		$
	8,213,000
	.....
	2026
	
25.31		$
	8,418,000
	.....
	2027
	
25.32 	(b) The 2026 appropriation includes $803,000 for 2025 and $7,410,000 for 2026.
26.1 	(c) The 2027 appropriation includes $823,000 for 2026 and $7,595,000 for 2027.
26.2 		Subd. 24.Recovery program grants. (a) For recovery program grants under Minnesota 
26.3 	Statutes, section 124D.695:

26.4		$
	750,000
	.....
	2026
	
26.5		$
	750,000
	.....
	2027
	
26.6 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
26.7 	(c) Up to ten percent of the grant amount is available for grant administration and 
26.8 	monitoring.
26.9 		Subd. 25.Sanneh Foundation. (a) For grants to the Sanneh Foundation:

26.10		$
	1,500,000
	.....
	2026
	
26.11		$
	1,500,000
	.....
	2027
	
26.12 	(b) Up to three percent of the appropriation is available for grant administration.
26.13 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
26.14 		Subd. 26.ServeMinnesota program. (a) For funding ServeMinnesota programs under 
26.15 	Minnesota Statutes, sections 124D.37 to 124D.45:

26.16		$
	900,000
	.....
	2026
	
26.17		$
	900,000
	.....
	2027
	
26.18 	(b) A grantee organization may provide health and child care coverage to the dependents 
26.19 	of each participant enrolled in a full-time ServeMinnesota program to the extent such 
26.20 	coverage is not otherwise available.
26.21 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
26.22 		Subd. 27.Starbase MN. (a) For a grant to Starbase MN for a rigorous science, 
26.23 	technology, engineering, and math program providing students in grades 4 through 6 with 
26.24 	a multisensory learning experience and a hands-on curriculum in an aerospace environment 
26.25 	using state-of-the-art technology:

26.26		$
	500,000
	.....
	2026
	
26.27		$
	500,000
	.....
	2027
	
26.28 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
26.29 		Subd. 28.Statewide testing and reporting system. (a) For the statewide testing and 
26.30 	reporting system under Minnesota Statutes, sections 120B.302 and 120B.305:

27.1		$
	10,892,000
	.....
	2026
	
27.2		$
	10,892,000
	.....
	2027
	
27.3 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
27.4 		Subd. 29.Student organizations. (a) For student organizations:

27.5		$
	1,084,000
	.....
	2026
	
27.6		$
	1,084,000
	.....
	2027
	
27.7 	(b) $68,000 each year is for student organizations serving health occupations (HOSA).
27.8 	(c) $100,000 each year is for student organizations serving trade and industry occupations 
27.9 	(Skills USA, secondary and postsecondary).
27.10 	(d) $122,000 each year is for student organizations serving business occupations (BPA, 
27.11 	secondary and postsecondary).
27.12 	(e) $322,000 each year is for student organizations serving agriculture occupations (FFA, 
27.13 	PAS).
27.14 	(f) $185,000 each year is for student organizations serving family and consumer science 
27.15 	occupations (FCCLA). Notwithstanding Minnesota Rules, part 3505.1000, subparts 28 and 
27.16 	31, the student organizations serving FCCLA shall continue to serve students younger than 
27.17 	grade 9.
27.18 	(g) $202,000 each year is for student organizations serving marketing occupations (DECA 
27.19 	and DECA collegiate).
27.20 	(h) $85,000 each year is for the Minnesota Foundation for Student Organizations. Of 
27.21 	this amount, $30,000 each year must be used for direct support of underserved and special 
27.22 	student populations.
27.23 	(i) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
27.24 		Subd. 30.Read Act professional development. (a) For evidence-based training on 
27.25 	structured literacy for teachers working in school districts, charter schools, and service 
27.26 	cooperatives:

27.27		$
	7,750,000
	.....
	2026
	
27.28		$
	7,750,000
	.....
	2027
	
27.29 	(b) Of the amounts in paragraph (a), $6,500,000 each year is for the regional literacy 
27.30 	networks and $1,250,000 each year is for statewide training. The department must use the 
27.31 	funding to develop a data collection system to: (1) collect and analyze the submission of 
27.32 	the local literacy plans and student-level universal screening data; (2) establish the regional 
28.1 	literacy networks as a partnership between the department and the Minnesota service 
28.2 	cooperatives; and (3) administer statewide training based in structured literacy to be offered 
28.3 	free to school districts and charter schools and facilitated by the regional literacy networks 
28.4 	and the department. The regional literacy networks must focus on implementing 
28.5 	comprehensive literacy reform efforts based on structured literacy. Each regional literacy 
28.6 	network must maintain a literacy lead position and maintain a team of trained literacy 
28.7 	coaches to facilitate evidence-based structured literacy training opportunities and ongoing 
28.8 	supports to school districts and charter schools in each region. Funds may be used to provide 
28.9 	training in structured literacy to grade 4 and 5 classroom teachers and literacy professors 
28.10 	from Minnesota institutions of higher education.
28.11 	(c) The commissioner must report to the legislative committees with jurisdiction over 
28.12 	kindergarten through grade 12 education the number of teachers from each district who 
28.13 	received approved structured literacy training using funds under this subdivision, and the 
28.14 	amounts awarded to districts, charter schools, or service cooperatives.
28.15 	(d) The regional literacy networks and staff from the Department of Education must 
28.16 	provide ongoing support to school districts, charter schools, and service cooperatives 
28.17 	implementing evidence-based literacy instruction.
28.18 		Subd. 31.Department literacy specialist. For a full-time literacy specialist at the 
28.19 	Department of Education:

28.20		$
	250,000
	.....
	2026
	
28.21		$
	250,000
	.....
	2027

28.22 	Sec. 10. REPEALER.
 28.23 	Minnesota Statutes 2024, section 124D.98, subdivisions 1, 2, 3, and 4, are repealed.

28.24 	ARTICLE 3
28.25 	TEACHERS

28.26 	Section 1. Minnesota Statutes 2024, section 122A.414, is amended by adding a subdivision 
28.27 	to read:
28.28 		Subd. 1b.Planning year for program closure. (a) School districts, charter schools, 
28.29 	school sites, and cooperative units with an approved alternative teacher professional pay 
28.30 	system may conduct a planning year to make arrangements for the closure of the alternative 
28.31 	teacher professional pay system program. During the year of planning for program closure, 
28.32 	a local program may use up to ten percent of alternative compensation revenue for transition 
29.1 	planning activities, including but not limited to stipends for employees or community 
29.2 	members working on transition planning teams, professional development for staff to learn 
29.3 	about the transition, or communications during the planning year. Following the planning 
29.4 	year, programs must distribute remaining reserved amounts equally among current teaching 
29.5 	staff.
29.6 	(b) A program conducting a planning year for program closure must continue to 
29.7 	implement all alternative compensation program activities required under this section during 
29.8 	the planning year. Payment to teachers for earned performance pay must continue, even if 
29.9 	payments cannot be made until the following fiscal year.
29.10 	(c) The goal of the planning year for program closure is to update local teacher 
29.11 	development and evaluation activities to be conducted without alternative compensation 
29.12 	revenue which ends effective June 30, 2026. A program conducting a planning year:
29.13 	(1) may immediately make changes to program activities to align with teacher 
29.14 	development and evaluation requirements without first seeking approval from the department, 
29.15 	provided these changes do not conflict with paragraph (b);
29.16 	(2) must, where applicable, develop and implement teacher development and evaluation 
29.17 	plans through a joint agreement between the school board and the exclusive representative 
29.18 	of teachers as required under sections 122A.40, subdivision 8, and 122A.41, subdivision 
29.19 	5; and
29.20 	(3) is encouraged to participate in department-led activities designed to assist in transition 
29.21 	planning.

29.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.23 	Sec. 2. Minnesota Statutes 2024, section 122A.4144, is amended to read:
29.24 	122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER 
29.25 	PAY.
29.26 	Notwithstanding section 179A.20 or other law to the contrary, a school board and the 
29.27 	exclusive representative of the teachers may agree to reopen a collective bargaining 
29.28 	agreement for the purpose of entering into or transitioning out of an alternative teacher 
29.29 	professional pay system agreement under sections 122A.414 and 122A.415. Negotiations 
29.30 	for a contract reopened under this section must be limited to issues related to the alternative 
29.31 	teacher professional pay system.

29.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.1 	Sec. 3. Minnesota Statutes 2024, section 122A.415, subdivision 1, is amended to read:
30.2 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
30.3 	cooperative unit as defined in section 123A.24, subdivision 2, school site, or charter school 
30.4 	that meets the conditions of section 122A.414 and submits an application approved by the 
30.5 	commissioner is eligible for alternative teacher compensation revenue.
30.6 	(b) For school district and intermediate school district applications, the commissioner 
30.7 	must consider only those applications to participate that are submitted jointly by a district 
30.8 	and the exclusive representative of the teachers. The application must contain an alternative 
30.9 	teacher professional pay system agreement that:
30.10 	(1) implements an alternative teacher professional pay system consistent with section 
30.11 	122A.414; and
30.12 	(2) is negotiated and adopted according to the Public Employment Labor Relations Act 
30.13 	under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a district 
30.14 	may enter into a contract for a term of two or four years.
30.15 	Alternative teacher compensation revenue for a qualifying school district or site in which 
30.16 	the school board and the exclusive representative of the teachers agree to place teachers in 
30.17 	the district or at the site on the alternative teacher professional pay system equals $260 for 
30.18 	fiscal year 2026, and $0 for fiscal year 2027 and later times the number of pupils enrolled 
30.19 	at the district or site on October 1 of the previous fiscal year. Alternative teacher 
30.20 	compensation revenue for a qualifying intermediate school district or cooperative must be 
30.21 	calculated under subdivision 4, paragraph (b).
30.22 	(c) For a newly combined or consolidated district, the revenue shall be computed using 
30.23 	the sum of pupils enrolled on October 1 of the previous year in the districts entering into 
30.24 	the combination or consolidation. The commissioner may adjust the revenue computed for 
30.25 	a site using prior year data to reflect changes attributable to school closings, school openings, 
30.26 	or grade level reconfigurations between the prior year and the current year.
30.27 	(d) The revenue is available only to school districts, intermediate school districts, 
30.28 	cooperatives, school sites, and charter schools that fully implement an alternative teacher 
30.29 	professional pay system by October 1 of the current school year.

30.30 	Sec. 4. Minnesota Statutes 2024, section 122A.415, subdivision 4, is amended to read:
30.31 		Subd. 4.Basic alternative teacher compensation aid. (a) The basic alternative teacher 
30.32 	compensation aid for a school with a plan approved under section 122A.414, subdivision 
30.33 	2b, equals 65 percent of the alternative teacher compensation revenue under subdivision 1. 
31.1 	The basic alternative teacher compensation aid for a charter school with a plan approved 
31.2 	under section 122A.414, subdivisions 2a and 2b, equals $260 for fiscal year 2026, and $0 
31.3 	for fiscal year 2027 and later times the number of pupils enrolled in the school on October 
31.4 	1 of the previous year, or on October 1 of the current year for a charter school in the first 
31.5 	year of operation, times the ratio of the sum of the alternative teacher compensation aid and 
31.6 	alternative teacher compensation levy for all participating school districts to the maximum 
31.7 	alternative teacher compensation revenue for those districts under subdivision 1.
31.8 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
31.9 	teacher compensation aid entitlement must not exceed $88,118,000 for fiscal year 2023; 
31.10 	$88,461,000 for fiscal year 2024; $88,961,000 for fiscal year 2025; and $89,486,000 for 
31.11 	fiscal year 2026; and $0 for fiscal year 2027 and later. The commissioner must limit the 
31.12 	amount of alternative teacher compensation aid approved under this section so as not to 
31.13 	exceed these limits by not approving new participants or by prorating the aid among 
31.14 	participating districts, intermediate school districts, school sites, and charter schools. The 
31.15 	commissioner may also reallocate a portion of the allowable aid for the biennium from the 
31.16 	second year to the first year to meet the needs of approved participants.
31.17 	(c) Basic alternative teacher compensation aid for an intermediate district or other 
31.18 	cooperative unit equals $3,000 for fiscal year 2026, and $0 for fiscal year 2027 and later
31.19 	times the number of licensed teachers employed by the intermediate district or cooperative 
31.20 	unit on October 1 of the previous school year.

31.21 	Sec. 5. Minnesota Statutes 2024, section 122A.635, is amended to read:
31.22 	122A.635 COLLABORATIVE URBAN AND GREATER MINNESOTA 
31.23 	EDUCATORS OF COLOR GRANT PROGRAM.
31.24 		Subdivision 1.Establishment. The Professional Educator Licensing and Standards 
31.25 	Board Department of Education must award competitive grants to increase the number of 
31.26 	teacher candidates who are of color or who are American Indian, complete teacher preparation 
31.27 	programs, and meet the requirements for a Tier 3 license under section 122A.183. Eligibility 
31.28 	for a grant under this section is limited to public or private higher education institutions that 
31.29 	offer a teacher preparation program approved by the Professional Educator Licensing and 
31.30 	Standards Board.
31.31 		Subd. 2.Competitive grants. (a) The Professional Educator Licensing and Standards 
31.32 	Board commissioner must award competitive grants to a variety of higher education 
31.33 	institution types under this section. The board commissioner must require an applicant 
31.34 	institution to submit a plan describing how it would use grant funds to increase the number 
32.1 	of teachers who are of color or who are American Indian, and must award grants based on 
32.2 	the following criteria, listed in descending order of priority. To the extent practicable, the 
32.3 	commissioner must award grants based on the following criteria:
32.4 	(1) program outcomes, including graduation or program completion rates and licensure 
32.5 	recommendation rates for candidates who are of color or who are American Indian compared 
32.6 	to all candidates enrolled in a teacher preparation program at the institution and, for each 
32.7 	outcome measure, the number of teacher candidates who are of color or who are American 
32.8 	Indian;
32.9 	(2) the extent to which an institution's plan is clear in describing how the institution 
32.10 	would use grant funds for implementing explicit research-based practices to provide 
32.11 	programmatic support to teacher candidates who are of color or who are American Indian. 
32.12 	Plans for grant funds may include:
32.13 	(i) recruiting more racially and ethnically diverse candidates for admission to teacher 
32.14 	preparation programs;
32.15 	(ii) providing differentiated advising, mentoring, or other supportive community-building 
32.16 	activities in addition to what the institution provides to all candidates enrolled in the 
32.17 	institution;
32.18 	(iii) providing academic tutoring or support to help teacher candidates pass required 
32.19 	assessments; and
32.20 	(iv) providing for program staffing expenses;
32.21 	(3) an institution's plan to provide direct financial assistance as scholarships or stipends 
32.22 	within the allowable dollar range determined by the board under subdivision 3, paragraph 
32.23 	(b), to teacher candidates who are of color or who are American Indian, not to exceed $5,000 
32.24 	per academic year for each candidate. The purpose of direct financial assistance is to provide 
32.25 	cost of attendance financial assistance to candidates matriculating through the licensure 
32.26 	program if they demonstrate financial need;
32.27 	(4) whether the institution has previously received a competitive grant under this section 
32.28 	and has demonstrated positive outcomes from the use of grant funds for efforts helping 
32.29 	teacher candidates who are of color or who are American Indian to enroll in and successfully 
32.30 	complete teacher preparation programs and be recommended for licensure;
32.31 	(5) geographic diversity among the applicant institutions. In order to expand the number 
32.32 	of grant recipients throughout the state, whenever there is at least a 20 percent increase in 
32.33 	the base appropriation for this grant program, the board must prioritize awarding grants to 
33.1 	institutions outside of the Twin Cities metropolitan area. If the board awards a grant based 
33.2 	on the criteria in paragraph (a) to a program that has not previously received funding, the 
33.3 	board must thereafter give priority to the program equivalent to other programs that have 
33.4 	received grants and demonstrated positive outcomes To the extent there are sufficient 
33.5 	applications, and to the extent practicable, the commissioner must award an equal number 
33.6 	of grants between applicants in greater Minnesota and those in the seven-county metropolitan 
33.7 	area; and
33.8 	(6) the percentage of racially and ethnically diverse teacher candidates enrolled in the 
33.9 	institution teacher preparation program compared to: the aggregate percentage of students 
33.10 	of color and American Indian students enrolled in the institution, regardless of major.
33.11 	(i) the aggregate percentage of students of color and American Indian students enrolled 
33.12 	in the institution, regardless of major; and
33.13 	(ii) the percentage of underrepresented racially and ethnically diverse teachers in the 
33.14 	economic development region of the state where the institution is located and where a 
33.15 	shortage of diverse teachers exists, as reported under section 122A.091, subdivision 5.
33.16 	(b) The board commissioner must not penalize an applicant institution in the grant review 
33.17 	process for using grant funds only to provide direct financial support to teacher candidates 
33.18 	if that is the institution's priority and the institution uses other resources to provide 
33.19 	programmatic support to candidates.
33.20 	(c) The board commissioner must determine award amounts for development, 
33.21 	maintenance, or expansion of programs based only on the degree to which applicants meet 
33.22 	the criteria in this subdivision, the number of candidates who are of color or who are 
33.23 	American Indian supported by an applicant program, and funds available.
33.24 	(d) The board must determine grant awards in part by multiplying the number of teacher 
33.25 	candidates to be provided direct financial assistance by the average amount the institution 
33.26 	proposes per candidate that is within the allowable dollar range. After assessing an 
33.27 	institution's adherence to grant criteria and funds available, the board may grant an institution 
33.28 	a lower average amount per candidate and the institution may decide to award less per 
33.29 	candidate or provide financial assistance to fewer candidates within the allowable range. 
33.30 	Additionally, an institution may use up to 25 percent of the awarded grant funds to provide 
33.31 	programmatic support as described in paragraph (a), clause (3). If the board does not award 
33.32 	an applicant institution's full request, the board must allow the institution to modify how it 
33.33 	uses grant funds to maximize program outcomes consistent with the requirements of this 
33.34 	section. The commissioner must allow an institution to use up to 25 percent of the awarded 
34.1 	grant funds to provide programmatic support for the teacher candidates receiving financial 
34.2 	support.
34.3 		Subd. 3.Grant program administration. (a) The Professional Educator Licensing and 
34.4 	Standards Board may enter into an interagency agreement with the Office of Higher 
34.5 	Education. The agreement may include a transfer of funds to the Office of Higher Education 
34.6 	to help establish and administer the competitive grant process. The board must award grants 
34.7 	to institutions located in various economic development regions throughout the state, but
34.8 	The department must not predetermine the number of institutions to be awarded grants 
34.9 	under this section or set a limit for the amount that any one institution may receive as part 
34.10 	of the competitive grant application process.
34.11 	(b) The board must establish a standard allowable dollar range for the amount of direct 
34.12 	financial assistance an applicant institution may provide to each candidate. To determine 
34.13 	the range, the board may collect de-identified data from institutions that received a grant 
34.14 	during the previous grant period and calculate the average scholarship amount awarded to 
34.15 	all candidates across all institutions using the most recent fiscal year data available. The 
34.16 	calculation may be used to determine a scholarship range that is no more than 25 percent 
34.17 	of this amount and no less than half the average of this amount. The purpose of direct 
34.18 	financial assistance is to assist candidates matriculating through completing licensure 
34.19 	programs if they demonstrate financial need after considering other grants and scholarships 
34.20 	provided.
34.21 	(c) (b) All grants must be awarded by August 15 of the fiscal year in which the grants 
34.22 	are to be used. The deadline must be extended if changes to the grant program or 
34.23 	appropriation impact the timeline for grant awards. An institution that receives a grant under 
34.24 	this section may use the grant funds over a two- up to a four-year period to sustain support 
34.25 	for teacher candidates at any stage from recruitment and program admission to graduation 
34.26 	and licensure application. For grantees who receive multiple awards that overlap in the same 
34.27 	academic years, the maximum combined total of direct financial assistance that an institution 
34.28 	may provide to the same teacher candidate in the same academic year is $10,000.
34.29 		Subd. 4.Report. (a) By August 15 of each year, an institution awarded a grant under 
34.30 	this section must prepare for the board commissioner a detailed report regarding the 
34.31 	expenditure of grant funds, including the amounts used to recruit, retain, and support teacher 
34.32 	candidates of color or American Indian teacher candidates to complete programs and be 
34.33 	recommended for licensure. The report must include:
35.1 	(1) the total number of teacher candidates of color and American Indian teacher candidates 
35.2 	who:
35.3 	(i) are enrolled in the institution;
35.4 	(ii) are supported by grant funds with direct financial assistance during the academic 
35.5 	reporting year;
35.6 	(iii) are supported with other programmatic supports;
35.7 	(iv) are recruited and newly admitted to a licensure program;
35.8 	(v) are enrolled in a licensure program;
35.9 	(vi) have completed a licensure program; and
35.10 	(vii) were recommended for licensure in the field for which they were prepared;
35.11 	(2) the total number of teacher candidates of color or American Indian teacher candidates 
35.12 	at each stage from program admission to licensure recommendation as a percentage of all 
35.13 	candidates seeking the same licensure at the institution; and
35.14 	(3) a brief narrative describing the successes and challenges of efforts proposed in the 
35.15 	grant application to support candidates with grant funds, and lessons learned for future 
35.16 	efforts.
35.17 	(b) By November 1 of each year, the board commissioner must post a report on its 
35.18 	website summarizing the activities and outcomes of grant recipients and results that promote 
35.19 	sharing of effective practices and lessons learned among grant recipients.
35.20 		Subd. 5.Positions transferred. All classified and unclassified positions associated with 
35.21 	the administration of grant programs being transferred to the Department of Education under 
35.22 	this section are transferred with their incumbents in accordance with section 15.039, 
35.23 	subdivision 7, except as otherwise provided in section 122A.07.

35.24 	Sec. 6. Minnesota Statutes 2024, section 122A.70, subdivision 2, is amended to read:
35.25 		Subd. 2.Board Grants. (a) The Professional Educator Licensing and Standards Board
35.26 	Department of Education must make grant application forms available to sites interested in 
35.27 	developing, sustaining, or expanding a mentorship program.
35.28 	(b) The following applicants are eligible for a program grant:
35.29 	(1) a school district, charter school, or cooperative unit, on behalf of its participating 
35.30 	school sites;
36.1 	(2) a Tribal contract school;
36.2 	(3) a coalition of teachers; and
36.3 	(4) a higher education institution;
36.4 	(5) a nonprofit organization;
36.5 	(6) a professional organization; and
36.6 	(4) (7) a coalition of two or more applicants that are individually eligible for a grant.
36.7 	A higher education institution, professional organization, or nonprofit organization may
36.8 	must partner with an eligible grant applicant but is not eligible as a sole applicant for grant 
36.9 	funds a school district, charter school, cooperative unit, Tribal contract school, or coalition 
36.10 	of teachers to apply for a grant.
36.11 	(c) The Professional Educator Licensing and Standards Board, in consultation with the 
36.12 	teacher mentoring task force, commissioner of education must approve or disapprove the 
36.13 	applications. To the extent possible, the approved applications must reflect effective 
36.14 	mentoring, professional development, and retention components, and be geographically 
36.15 	distributed throughout the state. The Professional Educator Licensing and Standards Board 
36.16 	must encourage the selected sites to consider the use of its assessment procedures.

36.17 	Sec. 7. Minnesota Statutes 2024, section 122A.70, subdivision 3, is amended to read:
36.18 		Subd. 3.Criteria for selection. (a) At a minimum, Applicants for grants under 
36.19 	subdivision 2 must express commitment to:
36.20 	(1) allow staff participation;
36.21 	(2) assess skills of both beginning and mentor teachers;
36.22 	(3) provide appropriate in-service to needs identified in the assessment;
36.23 	(4) provide leadership to the effort;
36.24 	(5) cooperate with higher education institutions or teacher educators;
36.25 	(6) provide facilities and other resources;
36.26 	(7) share findings, materials, and techniques with other school districts; and
36.27 	(8) retain teachers of color and teachers who are American Indian.
36.28 	(b) The Professional Educator Licensing and Standards Board commissioner of education
36.29 	must give priority to applications to fund programs to induct, mentor, and retain Tier 2 or 
37.1 	Tier 3 teachers who are of color or who are American Indian, and Tier 2 or Tier 3 teachers 
37.2 	in licensure shortage areas within the applicant's economic development region.

37.3 	Sec. 8. Minnesota Statutes 2024, section 122A.70, subdivision 5, is amended to read:
37.4 		Subd. 5.Program implementation. A grant recipient may use grant funds on 
37.5 	implementing activities over a period of time up to 24 months. New and expanding 
37.6 	mentorship sites that receive a board grant under subdivision 2 to design, develop, implement, 
37.7 	and evaluate their program must participate in activities that support program development 
37.8 	and implementation.

37.9 	Sec. 9. Minnesota Statutes 2024, section 122A.70, subdivision 5a, is amended to read:
37.10 		Subd. 5a.Grant program administration. The Professional Educator Licensing and 
37.11 	Standards Board commissioner of education may enter into an interagency agreement with 
37.12 	the Office of Higher Education or the Department of Education Professional Educator 
37.13 	Licensing and Standards Board. The agreement may include a transfer of funds to the Office 
37.14 	of Higher Education or the Department of Education Professional Educator Licensing and 
37.15 	Standards Board to help administer the competitive grant process.

37.16 	Sec. 10. Minnesota Statutes 2024, section 122A.70, subdivision 6, is amended to read:
37.17 		Subd. 6.Report. By September 30 of each year after receiving a grant, recipients must 
37.18 	submit a report to the Professional Educator Licensing and Standards Board the Department 
37.19 	of Education on program efforts that describes mentoring and induction activities and 
37.20 	assesses the impact of these programs on teacher effectiveness and retention. The board
37.21 	commissioner of education must publish a summary report for the public and submit the 
37.22 	report to the committees of the legislature with jurisdiction over kindergarten through grade 
37.23 	12 education policy and finance in accordance with section 3.302 by November 30 of each 
37.24 	even year.

37.25 	Sec. 11. Minnesota Statutes 2024, section 122A.70, is amended by adding a subdivision 
37.26 	to read:
37.27 		Subd. 7.Positions transferred. Classified and unclassified positions associated with 
37.28 	the administration of grant programs being transferred to the Department of Education under 
37.29 	this section are transferred with their incumbents in accordance with section 15.039, 
37.30 	subdivision 7, except as otherwise provided in section 122A.07.

38.1 	Sec. 12. Minnesota Statutes 2024, section 124D.901, subdivision 3, is amended to read:
38.2 		Subd. 3.Student support personnel aid. (a) The initial student support personnel aid 
38.3 	for a school district equals the greater of the student support personnel allowance times the 
38.4 	adjusted pupil units at the district for the current fiscal year or $40,000. The initial student 
38.5 	support personnel aid for a charter school equals the greater of the student support personnel 
38.6 	allowance times the adjusted pupil units at the charter school for the current fiscal year or 
38.7 	$20,000. Aid under this paragraph must be reserved in a fund balance that, beginning in 
38.8 	fiscal year 2025, may not exceed the greater of the aid entitlement in the prior fiscal year 
38.9 	or the fund balance in the prior fiscal year.
38.10 	(b) The cooperative student support personnel aid for a school district that is a member
38.11 	of an intermediate school district or other cooperative unit that serves students equals the 
38.12 	greater of the cooperative student support allowance times the adjusted pupil units at the 
38.13 	district for the current fiscal year or $40,000. If a district is a member of more than one 
38.14 	cooperative unit that serves students, the revenue must be allocated among the cooperative 
38.15 	units. Aid under this paragraph must not exceed actual expenditures the sum of: (1) $100,000; 
38.16 	plus (2) the number of member districts in excess of ten times $10,000. After the amounts 
38.17 	under clauses (1) and (2) are calculated, the remaining available funds are divided in half 
38.18 	to determine (3) a prorated per cooperative site distribution and (4) a prorated adjusted pupil 
38.19 	unit (APU) cooperative distribution in the form and manner prescribed by the commissioner 
38.20 	of education. The total aid for distribution in this section is generated by the allowance in 
38.21 	paragraph (d).
38.22 	(c) The student support personnel allowance equals $11.94 for fiscal year 2024, $17.08 
38.23 	for fiscal year 2025, and $48.73 for fiscal year 2026 and later.
38.24 	(d) For the purposes of this section, "cooperative" includes intermediate districts and 
38.25 	cooperative units serving students. The cooperative student support total allowance, to be 
38.26 	distributed to eligible cooperatives directly, calculated in paragraph (b) equals $0.60 for 
38.27 	fiscal year 2024, $0.85 for fiscal year 2025, and $2.44 for fiscal year 2026 and later of all 
38.28 	eligible adjusted pupil unit students in districts who are members of a cooperative, or $40,000 
38.29 	per member cooperative district, whichever is greater.

38.30 	Sec. 13. Minnesota Statutes 2024, section 124D.901, subdivision 4, is amended to read:
38.31 		Subd. 4.Allowed uses. (a) Aid under this section must be used to hire new positions 
38.32 	for student support services personnel or increase a current position that is less than 1.0 
38.33 	full-time equivalent to a greater number of service hours or make permanent a position hired 
38.34 	using onetime resources awarded through the federal Coronavirus Aid Relief and Economic 
39.1 	Security Act, the federal Consolidated Appropriations Act, the federal Division 
39.2 	M-Coronavirus Response and Relief Supplemental Appropriations Act, or the federal 
39.3 	American Rescue Plan Act, or to maintain a position that would otherwise be eliminated.
39.4 	(b) Cooperative student support personnel aid must be transferred to the intermediate 
39.5 	district or other cooperative unit of which the district is a member and used to hire new 
39.6 	positions for student support services personnel or increase a current position that is less 
39.7 	than 1.0 full-time equivalent to a greater number of service hours or make permanent a 
39.8 	position hired using onetime resources awarded through the American Rescue Plan Act at 
39.9 	the intermediate district or cooperative unit.
39.10 	(c) (b) If a school district, charter school, or cooperative unit does not receive at least 
39.11 	two applications and is not able to hire a new full-time equivalent position with student 
39.12 	support personnel aid, the aid may be used for contracted services from individuals licensed 
39.13 	to serve as a school counselor, school psychologist, school social worker, school nurse, or 
39.14 	chemical dependency counselor in Minnesota.
39.15 	(c) If a school district, charter school, or cooperative unit is not able to spend aid for the 
39.16 	uses in paragraphs (a) and (b), aid may be used for the following purposes:
39.17 	(1) to maintain student support personnel positions if a district receives declining 
39.18 	enrollment revenue according to section 126C.10, subdivision 2d, in fiscal years 2025 and 
39.19 	later and districts are forced to lay off a student support staff employee due to budgetary 
39.20 	concerns;
39.21 	(2) to cover the costs of planning and implementing training and job-embedded coaching 
39.22 	for student support personnel; and
39.23 	(3) to cover material costs of evidence-based, culturally responsive curriculums and 
39.24 	programs that proactively support student mental health and school community well-being. 
39.25 	The curriculum must be accredited through a national accreditation program before use.
39.26 	(d) Any use of aid under paragraph (c) must be reviewed by the Department of Education 
39.27 	to ensure the aid uses in paragraphs (a) and (b) were unable to be implemented.

39.28 	Sec. 14. Laws 2023, chapter 55, article 5, section 64, subdivision 15, as amended by Laws 
39.29 	2024, chapter 115, article 5, section 14, is amended to read:
39.30 		Subd. 15.Student support personnel workforce pipeline pathway. (a) For a grant 
39.31 	program to develop a student support personnel workforce pipeline pathway focused on 
39.32 	increasing school psychologists, school nurses, school counselors, and school social workers 
39.33 	of color and Indigenous providers, professional respecialization, recruitment, and retention:

40.1		$
	5,000,000
	.....
	2024
	
40.2		$
	5,000,000
	.....
	2025
	
40.3 	(b) Of the amount in paragraph (a), $150,000 is for providing support to school nurses 
40.4 	across the state.
40.5 	(c) To the extent practicable, the pipeline pathway grants must be used to support equal 
40.6 	numbers of students pursuing careers as school psychologists, school nurses, school 
40.7 	counselors, and school social workers.
40.8 	(d) For grants awarded under this subdivision to school psychologists, the following 
40.9 	terms have the meanings given:
40.10 	(1) "eligible designated trainee" means an individual enrolled in a NASP-approved or 
40.11 	APA-accredited school psychology program granting educational specialist certificates or 
40.12 	doctoral degrees in school psychology;
40.13 	(2) "practica" means an educational experience administered and evaluated by the 
40.14 	graduate training program, with university and site supervision by appropriately credentialed 
40.15 	school psychologists, to develop trainees' competencies to provide school psychological 
40.16 	services based on the graduate program's goals and competencies relative to accreditation 
40.17 	and licensure requirements; and
40.18 	(3) "eligible employment" means a paid position within a school or local education 
40.19 	agency directly related to the training program providing direct or indirect school psychology 
40.20 	services. Direct services include assessment, intervention, prevention, or consultation services 
40.21 	to students or their family members and educational staff. Indirect services include 
40.22 	supervision, research and evaluation, administration, program development, technical 
40.23 	assistance, or professional learning to support direct services.
40.24 	(e) Grants awarded to school psychologists must be used for:
40.25 	(1) the provision of paid, supervised, and educationally meaningful practica in a public 
40.26 	school setting for an eligible designated trainee enrolled in a qualifying program within the 
40.27 	grantee's institution;
40.28 	(2) to support student recruitment and retention to enroll and hire an eligible designated 
40.29 	trainee for paid practica in public school settings; and
40.30 	(3) oversight of trainee practica and professional development by the qualifying institution 
40.31 	to ensure the qualifications and conduct by an eligible designated trainee meet requirements 
40.32 	set forth by the state and accrediting agencies.
41.1 	(f) Upon successful completion of the graduate training program, grants awarded to 
41.2 	school psychologists must maintain eligible employment within Minnesota for a minimum 
41.3 	period of one-year full-time equivalent for each academic year of paid traineeship under 
41.4 	the grant program.
41.5 	(g) Up to $150,000 of the appropriation is available for grant administration.
41.6 	(h) Any balance in the first year does not cancel but is available in the second year.

41.7 	Sec. 15. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 41.8 		Subdivision 1.Department of Education. The sums indicated in this section are 
41.9 	appropriated from the general fund to the Department of Education for the fiscal years 
41.10 	designated.
41.11 		Subd. 2.Agricultural educator grants. (a) For agricultural educator grants under Laws 
41.12 	2017, First Special Session chapter 5, article 2, section 51:

41.13		$
	250,000
	.....
	2026
	
41.14		$
	250,000
	.....
	2027
	
41.15 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
41.16 	(c) Up to ten percent of the grant amount is available for grant administration and 
41.17 	monitoring.
41.18 		Subd. 3.Alternative teacher compensation aid. (a) For alternative teacher compensation 
41.19 	aid under Minnesota Statutes, section 122A.415, subdivision 4:

41.20		$
	88,351,000
	.....
	2026
	
41.21		$
	8,837,000
	.....
	2027
	
41.22 	(b) The 2026 appropriation includes $8,814,000 for fiscal year 2025 and $79,537,000 
41.23 	for fiscal year 2026.
41.24 	(c) The 2027 appropriation includes $8,837,000 for fiscal year 2026 and $0 for fiscal 
41.25 	year 2027.
41.26 		Subd. 4.Black Men Teach Twin Cities. (a) For a grant to Black Men Teach Twin Cities 
41.27 	for the purposes listed in paragraph (c):

41.28		$
	500,000
	.....
	2026
	
41.29		$
	500,000
	.....
	2027
	
41.30 	(b) Black Men Teach Twin Cities must use the grant to establish partnerships with public 
41.31 	elementary schools with a goal of increasing the number of black male teachers to 20 percent 
42.1 	of the teachers at each school site. To the extent possible, Black Men Teach Twin Cities 
42.2 	must include sites in greater Minnesota, suburban areas, and urban settings.
42.3 	(c) The grant money may be used for:
42.4 	(1) scholarships for aspiring teachers;
42.5 	(2) student teacher stipends;
42.6 	(3) mentoring activities;
42.7 	(4) professional development, with an emphasis on early literacy training, including best 
42.8 	practices associated with the science of reading; and
42.9 	(5) stipends for housing to allow a teacher to live closer to the teacher's school.
42.10 	(d) Black Men Teach Twin Cities must provide a detailed report to the chairs and ranking 
42.11 	minority members of the legislative committees with jurisdiction over kindergarten through 
42.12 	grade 12 education and higher education by January 15 of each year following the year of 
42.13 	a grant award describing how the grant money was used. The report must describe the 
42.14 	progress made toward the goal of increasing the number of Black male teachers at each 
42.15 	school site, identify the strategies used to recruit Black teachers, and describe barriers Black 
42.16 	men face in the teaching profession. The report must be filed in accordance with Minnesota 
42.17 	Statutes, section 3.195.
42.18 	(e) Up to three percent of the appropriation is available for grant administration.
42.19 		Subd. 5.Coalition to Increase Teachers of Color and American Indian Teachers. (a) 
42.20 	For the Board of Directors of the Minnesota Humanities Center for a grant to the Coalition 
42.21 	to Increase Teachers of Color and American Indian Teachers in Minnesota for nonlobbying 
42.22 	activities and general operating expenses that support the recruitment and retention of 
42.23 	racially and ethnically diverse teachers underrepresented in the state's workforce:

42.24		$
	100,000
	.....
	2026
	
42.25		$
	100,000
	.....
	2027
	
42.26 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
42.27 		Subd. 6.Come Teach in Minnesota hiring bonuses. (a) For the Come Teach in 
42.28 	Minnesota hiring bonuses program under Minnesota Statutes, section 122A.59:

42.29		$
	400,000
	.....
	2026
	
42.30		$
	400,000
	.....
	2027
	
42.31 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
42.32 	122A.59, subdivision 5.
43.1 		Subd. 7.Concurrent enrollment teacher training program. (a) For the concurrent 
43.2 	enrollment teacher partnership under Minnesota Statutes, section 122A.76:

43.3		$
	375,000
	.....
	2026
	
43.4		$
	375,000
	.....
	2027
	
43.5 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
43.6 		Subd. 8.Expanded concurrent enrollment grants. (a) For grants to institutions offering 
43.7 	"Introduction to Teaching" or "Introduction to Education" courses under Minnesota Statutes, 
43.8 	section 124D.09, subdivision 10, paragraph (b):

43.9		$
	500,000
	.....
	2026
	
43.10		$
	500,000
	.....
	2027
	
43.11 	(b) Up to five percent of the grant amount is available for grant administration and 
43.12 	monitoring.
43.13 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
43.14 		Subd. 9.Grow Your Own pathways to teacher licensure grants. (a) For grants to 
43.15 	develop, continue, or expand Grow Your Own new teacher programs under Minnesota 
43.16 	Statutes, section 122A.73, to develop a teaching workforce that more closely reflects the 
43.17 	state's increasingly diverse student population and ensure all students have equitable access 
43.18 	to effective and diverse teachers:

43.19		$
	31,954,000
	.....
	2026
	
43.20		$
	31,954,000
	.....
	2027
	
43.21 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
43.22 	122A.73, subdivision 5.
43.23 		Subd. 10.Special education teacher pipeline. (a) For grants to develop special education 
43.24 	teacher pipelines across Minnesota under Minnesota Statutes, section 122A.77:

43.25		$
	0
	.....
	2026
	
43.26		$
	10,000,000
	.....
	2027
	
43.27 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
43.28 	122A.77, subdivision 5.
43.29 	(c) The base for fiscal year 2028 and later is $10,000,000.
43.30 		Subd. 11.Student support personnel aid. (a) For aid to support schools in addressing 
43.31 	students' social, emotional, and physical health under Minnesota Statutes, section 124D.901:

44.1		$
	58,515,000
	.....
	2026
	
44.2		$
	60,713,000
	.....
	2027
	
44.3 	(b) The 2026 appropriation includes $3,650,000 for fiscal year 2025 and $54,865,000 
44.4 	for fiscal year 2026.
44.5 	(c) The 2027 appropriation includes $6,096,000 for fiscal year 2026 and $54,617,000 
44.6 	for fiscal year 2027.
44.7 		Subd. 12.Student support personnel workforce pathway. (a) For a grant program to 
44.8 	develop a student support personnel workforce pathway focused on increasing school 
44.9 	psychologists, school nurses, school counselors, and school social workers of color and 
44.10 	Indigenous providers, professional respecialization, recruitment, and retention:

44.11		$
	5,000,000
	.....
	2026
	
44.12		$
	5,000,000
	.....
	2027
	
44.13 	(b) Of the amount in paragraph (a), $150,000 each year is for providing support to school 
44.14 	nurses across the state.
44.15 	(c) To the extent practicable, the pathway grants must be used to support equal numbers 
44.16 	of students pursuing careers as school psychologists, school nurses, school counselors, and 
44.17 	school social workers.
44.18 	(d) For grants awarded to school psychologists under this subdivision, the following 
44.19 	terms have the meanings given:
44.20 	(1) "eligible designated trainee" means an individual enrolled in a National Association 
44.21 	of School Psychologists approved or American Psychological Association accredited school 
44.22 	psychology program granting educational specialist certificates or doctoral degrees in school 
44.23 	psychology;
44.24 	(2) "eligible employment" means a paid position within a school or local education 
44.25 	agency directly related to a training program providing direct or indirect school psychology 
44.26 	services. Direct services include assessment, intervention, prevention, or consultation services 
44.27 	to students or their family members and educational staff. Indirect services include 
44.28 	supervision, research and evaluation, administration, program development, technical 
44.29 	assistance, or professional learning to support direct services; and
44.30 	(3) "practica" means an educational experience administered and evaluated by a graduate 
44.31 	training program, with university and site supervision provided by appropriately credentialed 
44.32 	school psychologists, to develop trainees' competencies to provide school psychological 
45.1 	services based on the graduate training program's goals and competencies relative to 
45.2 	accreditation and licensure requirements.
45.3 	(e) Grants awarded to school psychologists must be used for:
45.4 	(1) providing paid, supervised, and educationally meaningful practica in a public school 
45.5 	setting for an eligible designated trainee enrolled in a qualifying program within the grantee's 
45.6 	institution;
45.7 	(2) supporting student recruitment and retention to enroll and hire an eligible designated 
45.8 	trainee for paid practica in public school settings; and
45.9 	(3) oversight of trainee practica and professional development by a qualifying program 
45.10 	to ensure the qualifications and conduct by an eligible designated trainee meet requirements 
45.11 	set forth by the state and accrediting agencies.
45.12 	(f) Upon successful completion of the graduate training program, grants awarded to 
45.13 	school psychologists must maintain eligible employment within Minnesota for a minimum 
45.14 	period of one-year full-time equivalent for each academic year of paid training under the 
45.15 	grant program.
45.16 	(g) Up to $150,000 of the appropriation is available for grant administration.
45.17 	(h) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
45.18 		Subd. 13.Teacher residency program. (a) For a teacher residency program that meets 
45.19 	the requirements of Minnesota Rules, part 8705.2100, subpart 2, item D, subitem (5), unit 
45.20 	(g):

45.21		$
	3,000,000
	.....
	2026
	
45.22		$
	3,000,000
	.....
	2027
	
45.23 	(b) Up to three percent of the appropriation is available for grant administration.
45.24 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
45.25 		Subd. 14.Collaborative urban and greater Minnesota educators of color grants. (a) 
45.26 	For collaborative urban and greater Minnesota educators of color competitive grants under 
45.27 	Minnesota Statutes, section 122A.635:

45.28		$
	5,440,000
	.....
	2026
	
45.29		$
	5,440,000
	.....
	2027
	
45.30 	(b) The department may retain up to $100,000 of the appropriation to monitor and 
45.31 	administer the grant program.
46.1 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
46.2 		Subd. 15.Mentoring, induction, and retention incentive program grants for teachers 
46.3 	of color. (a) To develop and expand mentoring, induction, and retention programs designed 
46.4 	for teachers of color or American Indian teachers under Minnesota Statutes, section 122A.70:

46.5		$
	4,500,000
	.....
	2026
	
46.6		$
	4,500,000
	.....
	2027
	
46.7 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
46.8 	(c) Of the amounts in paragraph (a), at least $3,500,000 each fiscal year is for grants to 
46.9 	develop and expand mentoring, induction, and retention programs designed for teachers of 
46.10 	color or American Indian teachers.
46.11 	(d) The department may retain up to three percent of the appropriation amount to monitor 
46.12 	and administer the grant program.

46.13 	Sec. 16. APPROPRIATIONS; PROFESSIONAL EDUCATOR LICENSING AND 
46.14 	STANDARDS BOARD.
 46.15 		Subdivision 1.Professional Educator Licensing and Standards Board. The sums 
46.16 	indicated in this section are appropriated from the general fund to the Professional Educator 
46.17 	Licensing and Standards Board for the fiscal years designated.
46.18 		Subd. 2.Alternative pathways support position. To fund a position at the Professional 
46.19 	Educator Licensing and Standards Board to support candidates through alternative pathway 
46.20 	programs, including the licensure via portfolio process, and to support districts, charter 
46.21 	schools, and educational cooperatives to become alternative preparation providers:

46.22		$
	150,000
	.....
	2026
	
46.23		$
	150,000
	.....
	2027
	
46.24 		Subd. 3.Heritage language and culture teachers. To support an additional licensure 
46.25 	pathway program for heritage language and culture teachers under Minnesota Statutes, 
46.26 	section 122A.631, including funding for a portfolio liaison and funding for substitute teachers 
46.27 	on meeting days, portfolio fees, licensure fees, and licensure exam fees for 50 program 
46.28 	participants:

46.29		$
	208,000
	.....
	2026
	
46.30		$
	208,000
	.....
	2027
	
46.31 		Subd. 4.Licensure via portfolio online platform. To complete the licensure via portfolio 
46.32 	online platform to streamline the portfolio submission and review process:

47.1		$
	150,000
	.....
	2026
	
47.2		$
	150,000
	.....
	2027
	
47.3 		Subd. 5.Pathway preparation grants. (a) For grants to support teachers holding a Tier 
47.4 	1 or Tier 2 license who are seeking a Tier 3 or Tier 4 license:

47.5		$
	400,000
	.....
	2026
	
47.6		$
	400,000
	.....
	2027
	
47.7 	(b) The following are eligible for grants under this subdivision:
47.8 	(1) school districts;
47.9 	(2) charter schools;
47.10 	(3) service cooperatives; and
47.11 	(4) partnerships between one or more teacher preparation providers, school districts, or 
47.12 	charter schools.
47.13 	(c) Grant funds must be used to support teachers holding a Tier 1 or Tier 2 license and 
47.14 	seeking a Tier 3 or Tier 4 license through completion of a teacher preparation program or 
47.15 	the licensure via portfolio process. A grant recipient must provide teachers holding a Tier 
47.16 	1 or Tier 2 license with professional development, mentorship, and coursework aligned to 
47.17 	state standards for teacher licensure.
47.18 	(d) The Professional Educator Licensing and Standards Board may collaborate with the 
47.19 	Department of Education and the Office of Higher Education to administer the grant program.
47.20 	(e) The board may retain up to three percent of the appropriation amount to monitor and 
47.21 	administer the grant.
47.22 		Subd. 6.Teacher recruitment marketing campaign. (a) To develop two contracts to 
47.23 	develop and implement an outreach and marketing campaign under this subdivision:

47.24		$
	500,000
	.....
	2026
	
47.25		$
	500,000
	.....
	2027
	
47.26 	(b) The Professional Educator Licensing and Standards Board must issue a request for 
47.27 	proposals to develop and implement an outreach and marketing campaign to elevate the 
47.28 	profession and recruit teachers, especially teachers of color and American Indian teachers. 
47.29 	Outreach efforts may include and support current and former Teacher of the Year finalists 
47.30 	interested in being recruitment fellows to encourage prospective educators throughout the 
47.31 	state. The board may renew a grant contract with a prior recipient if it determines sufficient 
48.1 	deliverables were achieved and the plans of the firm or organization are more promising 
48.2 	than proposals from other entities.
48.3 	(c) The outreach and marketing campaign must focus on increasing interest in teaching 
48.4 	in Minnesota public schools for the following individuals:
48.5 	(1) high school and college students of color or American Indian students who have not 
48.6 	chosen a career path; or
48.7 	(2) adults from racial or ethnic groups underrepresented in the teacher workforce who 
48.8 	may be seeking to change careers.
48.9 	(d) The board must award two $250,000 grants each year to firms or organizations that 
48.10 	demonstrate capacity to reach wide and varied audiences of prospective teachers based on 
48.11 	a work plan with quarterly deliverables. Preferences may be given to firms or organizations 
48.12 	that are led by people of color and that have people of color working on the campaign with 
48.13 	a proven record of success. The grant recipients must recognize current pathways or programs 
48.14 	to become a teacher and must partner with educators, schools, institutions, and racially 
48.15 	diverse communities. The grant recipients are encouraged to provide in-kind contributions 
48.16 	or seek funds from nonstate sources to supplement the grant award.
48.17 	(e) The board may use no more than three percent of the appropriation amount to 
48.18 	administer the program under this subdivision, and may have an interagency agreement 
48.19 	with the Department of Education including transfer of funds to help administer the program.
48.20 	(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

48.21 	Sec. 17. REPEALER.
 48.22 	Minnesota Statutes 2024, sections 122A.414, subdivisions 1, 2, 3, 4, 4a, 5, 5a, 6, 7, 8, 
48.23 	9, 10, 11, 12, 13, 14a, 15, and 16; 122A.4144; 122A.415, subdivisions 1, 3, 4, 5, 6, and 7; 
48.24 	122A.4155; 122A.416; and 122A.417, are repealed for fiscal year 2028 and later.

48.25 	EFFECTIVE DATE. This section is effective June 30, 2027.

48.26 	ARTICLE 4
48.27 	AMERICAN INDIAN EDUCATION

48.28 	Section 1. Minnesota Statutes 2024, section 122A.63, subdivision 9, is amended to read:
48.29 		Subd. 9.Eligible programming. (a) The grantee institutions may provide scholarships 
48.30 	to eligible students progressing toward educational goals in a kindergarten through grade 
49.1 	12 educational setting in any area of teacher licensure, including an associate's, bachelor's, 
49.2 	master's, or doctoral degree in the following:
49.3 	(1) any educational certification necessary for employment;
49.4 	(2) early childhood family education or prekindergarten licensure;
49.5 	(3) elementary and secondary education;
49.6 	(4) school administration; or
49.7 	(5) any educational program that provides services to American Indian students in 
49.8 	prekindergarten through grade 12.
49.9 	(b) Scholarships may be used to cover an eligible student's cost of attendance under 
49.10 	section 136A.126, subdivision 3.
49.11 	(c) For purposes of recruitment, the grantees or their contracted partner institutions must 
49.12 	agree to work with their respective organizations to hire an American Indian work-study 
49.13 	student or other American Indian staff to conduct initial information queries and to contact 
49.14 	persons working in schools to provide programming regarding education professions to 
49.15 	high school students who may be interested in education as a profession.
49.16 	(d) At least 80 percent of the grants awarded under this section must be used for student 
49.17 	scholarships. No more than 20 percent of the grants awarded under this section may be used 
49.18 	for recruitment or administration of the student scholarships.

49.19 	Sec. 2. Minnesota Statutes 2024, section 124D.83, subdivision 2, is amended to read:
49.20 		Subd. 2.Revenue amount. An American Indian-controlled tribal contract or grant school 
49.21 	that is located on a reservation within the state and that complies with the requirements in 
49.22 	subdivision 1 is eligible to receive tribal contract or grant school aid. The amount of aid is 
49.23 	derived by:
49.24 	(1) multiplying the formula allowance under section 126C.10, subdivision 2, less $170, 
49.25 	times the difference between (i) the resident pupil units as defined in section 126C.05, 
49.26 	subdivision 6, in average daily membership, excluding section 126C.05, subdivision 13, 
49.27 	and (ii) the number of pupils for the current school year, weighted according to section 
49.28 	126C.05, subdivision 1, receiving benefits under section 123B.42 or 123B.44 or for which 
49.29 	the school is receiving reimbursement under section 124D.69;
49.30 	(2) adding to the result in clause (1) an amount equal to the product of the formula 
49.31 	allowance under section 126C.10, subdivision 2, less $300 times the tribal contract 
49.32 	compensation revenue pupil units;
50.1 	(3) subtracting from the result in clause (2) the amount of money allotted to the school 
50.2 	by the federal government through Indian School Equalization Program of the Bureau of 
50.3 	Indian Affairs, according to Code of Federal Regulations, title 25, part 39, subparts A to E, 
50.4 	for the basic program as defined by section 39.11, paragraph (b), for the base rate as applied 
50.5 	to kindergarten through twelfth grade, excluding small school adjustments and additional 
50.6 	weighting, but not money allotted through subparts F to L for contingency funds, school 
50.7 	board training, student training, interim maintenance and minor repair, interim administration 
50.8 	cost, prekindergarten, and operation and maintenance, and the amount of money that is 
50.9 	received according to section 124D.69;
50.10 	(4) dividing the result in clause (3) by the sum of the resident pupil units in average daily 
50.11 	membership, excluding section 126C.05, subdivision 13, plus the tribal contract compensation 
50.12 	revenue pupil units; and
50.13 	(5) multiplying the sum of the resident pupil units, including section 126C.05, subdivision 
50.14 	13, in average daily membership plus the tribal contract compensation revenue pupil units 
50.15 	by the lesser of $3,230 for fiscal year 2019 and 51.17 percent of the formula allowance for 
50.16 	fiscal year 2020 and later or the result in clause (4).

50.17 	Sec. 3. APPROPRIATIONS.
 50.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
50.19 	appropriated from the general fund to the Department of Education for the fiscal years 
50.20 	designated.
50.21 		Subd. 2.American Indian education aid. (a) For American Indian education aid under 
50.22 	Minnesota Statutes, section 124D.81, subdivision 2a:

50.23		$
	20,469,000
	.....
	2026
	
50.24		$
	21,343,000
	.....
	2027
	
50.25 	(b) The 2026 appropriation includes $1,976,000 for 2025 and $18,493,000 for 2026.
50.26 	(c) The 2027 appropriation includes $2,054,000 for 2026 and $19,289,000 for 2027.
50.27 		Subd. 3.Minnesota Indian teacher training program grants. (a) For joint grants to 
50.28 	assist people who are American Indian to become teachers under Minnesota Statutes, section 
50.29 	122A.63:

50.30		$
	600,000
	.....
	2026
	
50.31		$
	600,000
	.....
	2027
	
51.1 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
51.2 	122A.63, subdivision 10.
51.3 		Subd. 4.Native language revitalization grants to schools. (a) For grants to school 
51.4 	districts, charter schools, and Tribal contract schools to offer language instruction in Dakota 
51.5 	and Anishinaabe languages or another language indigenous to the United States or Canada:

51.6		$
	7,500,000
	.....
	2026
	
51.7		$
	7,500,000
	.....
	2027
	
51.8 	(b) Grant amounts are to be determined based upon the number of schools within a 
51.9 	district implementing language courses. Eligible expenses include costs for teachers, program 
51.10 	supplies, and curricular resources.
51.11 	(c) Up to five percent of the grant amount is available for grant administration and 
51.12 	monitoring.
51.13 	(d) Up to $300,000 each year is for administrative and programmatic capacity at the 
51.14 	Department of Education.
51.15 	(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
51.16 		Subd. 5.Tribal contract school aid. (a) For Tribal contract school aid under Minnesota 
51.17 	Statutes, section 124D.83:

51.18		$
	2,415,000
	.....
	2026
	
51.19		$
	2,692,000
	.....
	2027
	
51.20 	(b) The 2026 appropriation includes $219,000 for 2025 and $2,196,000 for 2026.
51.21 	(c) The 2027 appropriation includes $244,000 for 2026 and $2,448,000 for 2027.
51.22 		Subd. 6.Early childhood programs at Tribal contract schools. (a) For early childhood 
51.23 	family education programs at Tribal contract schools under Minnesota Statutes, section 
51.24 	124D.83, subdivision 4:

51.25		$
	68,000
	.....
	2026
	
51.26		$
	68,000
	.....
	2027
	
51.27 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

52.1 	ARTICLE 5
52.2 	SPECIAL EDUCATION

52.3 	Section 1. Minnesota Statutes 2024, section 125A.76, subdivision 2a, is amended to read:
52.4 		Subd. 2a.Special education initial aid. For fiscal year 2021 and later, a district's special 
52.5 	education initial aid equals the sum of:
52.6 	(1) the least of 62 percent of the district's old formula special education expenditures 
52.7 	for the prior fiscal year, excluding pupil transportation expenditures, 50 percent of the 
52.8 	district's nonfederal special education expenditures for the prior year, excluding pupil 
52.9 	transportation expenditures, or 56 percent of the product of the sum of the following amounts, 
52.10 	computed using prior fiscal year data, and the program growth factor:
52.11 	(i) the product of the district's average daily membership served and the sum of:
52.12 	(A) $460; plus
52.13 	(B) $405 times the ratio of the sum of the number of pupils enrolled on October 1 who 
52.14 	are eligible to receive free meals plus one-half of the pupils enrolled on October 1 who are 
52.15 	eligible to receive reduced-price meals to the total October 1 enrollment; plus
52.16 	(C) .008 times the district's average daily membership served; plus
52.17 	(ii) $13,300 times the December 1 child count for the primary disability areas of autism 
52.18 	spectrum disorders, developmental delay, and severely multiply impaired; plus
52.19 	(iii) $19,200 times the December 1 child count for the primary disability areas of deaf 
52.20 	and hard-of-hearing and emotional or behavioral disorders; plus
52.21 	(iv) $25,200 times the December 1 child count for the primary disability areas of 
52.22 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
52.23 	physically impaired, visually impaired, and deafblind; plus
52.24 	(2) the cost of providing transportation services for children with disabilities under 
52.25 	section 123B.92, subdivision 1, paragraph (b), clause (4), reimbursed at 95 percent for fiscal 
52.26 	year 2026, and 90 percent for fiscal years 2027 and later.

52.27 	Sec. 2. APPROPRIATIONS.
 52.28 		Subdivision 1.Department of Education. The sums indicated in this section are 
52.29 	appropriated from the general fund to the Department of Education for the fiscal years 
52.30 	designated.
53.1 		Subd. 2.Aid for children with disabilities. (a) For aid under Minnesota Statutes, section 
53.2 	125A.75, subdivision 3, for children with disabilities placed in residential facilities within 
53.3 	district boundaries for whom no district of residence can be determined:

53.4		$
	2,240,000
	.....
	2026
	
53.5		$
	2,570,000
	.....
	2027
	
53.6 	(b) If the appropriation for either year is insufficient, the appropriation for the other year 
53.7 	is available.
53.8 		Subd. 3.Court-placed special education revenue.  For reimbursing serving school 
53.9 	districts for unreimbursed eligible expenditures attributable to children placed in the serving 
53.10 	school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

53.11		$
	41,000
	.....
	2026
	
53.12		$
	42,000
	.....
	2027
	
53.13 		Subd. 4.Special education; regular. (a) For special education aid under Minnesota 
53.14 	Statutes, section 125A.76:

53.15		$
	2,741,694,000
	.....
	2026
	
53.16		$
	2,950,159,000
	.....
	2027
	
53.17 	(b) The 2026 appropriation includes $320,095,000 for 2025 and $2,421,599,000 for 
53.18 	2026.
53.19 	(c) The 2027 appropriation includes $340,891,000 for 2026 and $2,609,268,000 for 
53.20 	2027.
53.21 		Subd. 5.Special education out-of-state tuition.  For special education out-of-state 
53.22 	tuition under Minnesota Statutes, section 125A.79, subdivision 8:

53.23		$
	250,000
	.....
	2026
	
53.24		$
	250,000
	.....
	2027
	
53.25 		Subd. 6.Special education separate sites and programs. (a) For aid for special 
53.26 	education separate sites and programs under Minnesota Statutes, section 125A.81, subdivision 
53.27 	4:

53.28		$
	4,730,000
	.....
	2026
	
53.29		$
	4,966,000
	.....
	2027
	
53.30 	(b) The 2026 appropriation includes $452,000 for 2025 and $4,278,000 for 2026.
53.31 	(c) The 2027 appropriation includes $475,000 for 2026 and $4,491,000 for 2027.
54.1 		Subd. 7.Travel for home-based services. (a) For aid for teacher travel for home-based 
54.2 	services under Minnesota Statutes, section 125A.75, subdivision 1:

54.3		$
	643,000
	.....
	2026
	
54.4		$
	709,000
	.....
	2027
	
54.5 	(b) The 2026 appropriation includes $58,000 for 2025 and $585,000 for 2026.
54.6 	(c) The 2027 appropriation includes $65,000 for 2026 and $644,000 for 2027.

54.7 	ARTICLE 6
54.8 	FACILITIES

54.9 	Section 1. Minnesota Statutes 2024, section 126C.40, subdivision 1, is amended to read:
54.10 		Subdivision 1.To lease building or land. (a) When an independent or a special school 
54.11 	district or a group of independent or special school districts finds it economically 
54.12 	advantageous to rent or lease a building or land for any instructional purposes or for school 
54.13 	storage or furniture repair, and it determines that the operating capital revenue authorized 
54.14 	under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the 
54.15 	commissioner for permission to make an additional capital expenditure levy for this purpose. 
54.16 	An application for permission to levy under this subdivision must contain financial 
54.17 	justification for the proposed levy, the terms and conditions of the proposed lease, and a 
54.18 	description of the space to be leased and its proposed use. For any capital or joint powers 
54.19 	lease application with a total value of over $2,000,000, a review and comment must be 
54.20 	submitted prior to a capital lease approval.
54.21 	(b) The criteria for approval of applications to levy under this subdivision must include: 
54.22 	the reasonableness of the price, the appropriateness of the space to the proposed activity, 
54.23 	the feasibility of transporting pupils to the leased building or land, conformity of the lease 
54.24 	to the laws and rules of the state of Minnesota, and the appropriateness of the proposed 
54.25 	lease to the space needs and the financial condition of the district as prescribed by the 
54.26 	commissioner, including but not limited to a review of statutory operating debt percentage. 
54.27 	The commissioner must not authorize a levy under this subdivision in an amount greater 
54.28 	than the cost to the district of renting or leasing a building or land for approved purposes. 
54.29 	The proceeds of this levy must not be used for custodial or other maintenance services. A 
54.30 	district may not levy under this subdivision for the purpose of leasing or renting a 
54.31 	district-owned building or site to itself.
54.32 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
54.33 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily for 
55.1 	regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
55.2 	building addition or additions used primarily for regular kindergarten, elementary, or 
55.3 	secondary instruction that contains more than 20 percent of the square footage of the 
55.4 	previously existing building.
55.5 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
55.6 	purpose of leasing or renting a district-owned building or site to itself only if the amount is 
55.7 	needed by the district to make payments required by a lease purchase agreement, installment 
55.8 	purchase agreement, or other deferred payments agreement authorized by law, and the levy 
55.9 	meets the requirements of paragraph (c). A levy authorized for a district by the commissioner 
55.10 	under this paragraph may be in the amount needed by the district to make payments required 
55.11 	by a lease purchase agreement, installment purchase agreement, or other deferred payments 
55.12 	agreement authorized by law, provided that any agreement include a provision giving the 
55.13 	school districts the right to terminate the agreement annually without penalty.
55.14 	(e) The total levy under this subdivision for a district for any year must not exceed $212 
55.15 	times the adjusted pupil units for the fiscal year to which the levy is attributable.
55.16 	(f) For agreements for which a review and comment have been submitted to the 
55.17 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
55.18 	this subdivision excludes expenditures on stadiums.
55.19 	(g) The commissioner of education may authorize a school district to exceed the limit 
55.20 	in paragraph (e) if the school district petitions the commissioner for approval. The 
55.21 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
55.22 	for not more than five years if the district meets the following criteria:
55.23 	(1) the school district has been experiencing pupil enrollment growth in the preceding 
55.24 	five years;
55.25 	(2) the purpose of the increased levy is in the long-term public interest;
55.26 	(3) the purpose of the increased levy promotes colocation of government services; and
55.27 	(4) the purpose of the increased levy is in the long-term interest of the district by avoiding 
55.28 	over construction of school facilities.
55.29 	(h) A school district that is a member of an intermediate school district or other 
55.30 	cooperative unit under section 123A.24, subdivision 2, or a joint powers district under 
55.31 	section 471.59 may include in its authority under this section the costs associated with leases 
55.32 	of administrative and classroom space for programs of the intermediate school district or 
55.33 	other cooperative unit under section 123A.24, subdivision 2, or joint powers district under 
56.1 	section 471.59. This authority must not exceed $65 times the adjusted pupil units of the 
56.2 	member districts. This authority is in addition to any other authority authorized under this 
56.3 	section. The intermediate school district, other cooperative unit, or joint powers district may 
56.4 	specify which member districts will levy for lease costs under this paragraph.
56.5 	(i) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
56.6 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
56.7 	the commissioner that the lease cost for the administrative space is no greater than the lease 
56.8 	cost for instructional space that the district would otherwise lease. The commissioner must 
56.9 	deny this levy authority unless the district passes a resolution stating its intent to lease 
56.10 	instructional space under this section if the commissioner does not grant authority under 
56.11 	this paragraph. The resolution must also certify that the lease cost for administrative space 
56.12 	under this paragraph is no greater than the lease cost for the district's proposed instructional 
56.13 	lease.
56.14 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
56.15 	district's proportionate share of deferred maintenance expenditures for a district-owned 
56.16 	building or site leased to a cooperative unit under section 123A.24, subdivision 2, or a joint 
56.17 	powers district under section 471.59 for any instructional purposes or for school storage.

56.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2026 and later.

56.19 	Sec. 2. Minnesota Statutes 2024, section 126C.40, is amended by adding a subdivision to 
56.20 	read:
56.21 		Subd. 7.Definitions.  (a) For the purposes of this section, the following terms have the 
56.22 	meanings given.
56.23 	(b) "Capital lease" means an agreement to use, construct, or remodel a site under 
56.24 	subdivision 1, paragraph (c), with the end result being site ownership.
56.25 	(c) "Criteria of approval" means guidelines approved and updated as needed by the 
56.26 	commissioner for each levy year.
56.27 	(d) Notwithstanding subdivision 1, "instructional purposes" means the use of a building 
56.28 	or land being leased leads to educational-related outcomes identified in statute or state 
56.29 	program policy.
56.30 	(e) "Joint lease" means districts with levy authority agree to contribute to the annual 
56.31 	costs of hosted or joint powers operational or capital leases. The host district or joint powers 
56.32 	district has the authority to apply leases to member district levies for leases approved by 
56.33 	the commissioner.
57.1 	(f) "Operating costs" means regular maintenance or custodial supplies and services.
57.2 	(g) "Operational lease" means an agreement to use building or land not leading to 
57.3 	ownership.
57.4 	(h) "Rent or lease" means a formal agreement or Department of Education approval for 
57.5 	occasional-use sites, in writing, with the term, cost, and board approval included.
57.6 	(i) "Review and comment" means completing the Department of Education review 
57.7 	process for any capital lease projected to cost $2,000,000 or more.

57.8 	EFFECTIVE DATE. This section is effective for taxes payable in 2026 and later.

57.9 	Sec. 3. APPROPRIATIONS.
 57.10 		Subdivision 1.Department of Education. The sums indicated in this section are 
57.11 	appropriated from the general fund to the Department of Education for the fiscal years 
57.12 	designated.
57.13 		Subd. 2.Debt service equalization aid. (a) For debt service equalization aid under 
57.14 	Minnesota Statutes, section 123B.53, subdivision 6:

57.15		$
	16,225,000
	.....
	2026
	
57.16		$
	13,580,000
	.....
	2027
	
57.17 	(b) The 2026 appropriation includes $1,986,000 for 2025 and $14,239,000 for 2026.
57.18 	(c) The 2027 appropriation includes $1,582,000 for 2026 and $11,998,000 for 2027.
57.19 		Subd. 3.Equity in telecommunications access. (a) For equity in telecommunications 
57.20 	access:

57.21		$
	3,750,000
	.....
	2026
	
57.22		$
	3,750,000
	.....
	2027
	
57.23 	(b) If the appropriation amount is insufficient, the commissioner must reduce the 
57.24 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
57.25 	revenue for fiscal years 2026 and 2027 must be prorated.
57.26 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
57.27 		Subd. 4.Grants for gender-neutral single-user restrooms. (a) For grants to school 
57.28 	districts for remodeling, constructing, or repurposing space for gender-neutral single-user 
57.29 	restrooms:

58.1		$
	1,000,000
	.....
	2026
	
58.2		$
	1,000,000
	.....
	2027
	
58.3 	(b) A school district or a cooperative unit under Minnesota Statutes, section 123A.24, 
58.4 	subdivision 2, may apply for a grant of not more than $75,000 per site under this subdivision 
58.5 	in the form and manner specified by the commissioner.
58.6 	(c) The commissioner must ensure that grants are awarded to schools to reflect the 
58.7 	geographic diversity of the state.
58.8 	(d) Up to $75,000 each year is available for grant administration and monitoring.
58.9 	(e) By February 1 of each year, the commissioner must annually report to the legislative 
58.10 	committees with jurisdiction over kindergarten through grade 12 education on the number 
58.11 	of grants that were awarded each year and the number of grant applications that were 
58.12 	unfunded each year.
58.13 	(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
58.14 		Subd. 5.Long-term facilities maintenance equalized aid. (a) For long-term facilities 
58.15 	maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

58.16		$
	106,480,000
	.....
	2026
	
58.17		$
	105,485,000
	.....
	2027
	
58.18 	(b) The 2026 appropriation includes $10,720,000 for 2025 and $95,760,000 for 2026.
58.19 	(c) The 2027 appropriation includes $10,639,000 for 2026 and $94,846,000 for 2027.

58.20 	ARTICLE 7
58.21 	SCHOOL NUTRITION AND LIBRARIES

58.22 	Section 1. Minnesota Statutes 2024, section 124D.111, subdivision 3, is amended to read:
58.23 		Subd. 3.School food service fund. (a) The expenses described in this subdivision must 
58.24 	be recorded as provided in this subdivision.
58.25 	(b) In each district, the expenses for a school food service program for pupils must be 
58.26 	attributed to a school food service fund. Under a food service program, the school food 
58.27 	service may prepare or serve milk, meals, or snacks in connection with school or community 
58.28 	service activities.
58.29 	(c) Revenues and expenditures for food service activities must be recorded in the food 
58.30 	service fund. The costs of processing applications, accounting for meals, preparing and 
58.31 	serving food, providing kitchen custodial services, and other expenses involving the preparing 
59.1 	of meals or the kitchen section of the lunchroom may be charged to the food service fund 
59.2 	or to the general fund of the district. The costs of lunchroom supervision, lunchroom custodial 
59.3 	services, lunchroom utilities, lunchroom furniture, and other administrative costs of the 
59.4 	food service program must be charged to the general fund.
59.5 	That portion of superintendent and fiscal manager costs that can be documented as 
59.6 	attributable to the food service program may be charged to the food service fund provided 
59.7 	that the school district does not employ or contract with a food service director or other 
59.8 	individual who manages the food service program, or food service management company. 
59.9 	If the cost of the superintendent or fiscal manager is charged to the food service fund, the 
59.10 	charge must be at a wage rate not to exceed the statewide average for food service directors 
59.11 	as determined by the department.
59.12 	Staff whose primary responsibility is financial or program management of food service 
59.13 	operations may charge time spent managing the program to the food service program.
59.14 	(d) Capital expenditures for the purchase of food service equipment must be made from 
59.15 	the general fund and not the food service fund, unless the restricted balance in the food 
59.16 	service fund at the end of the last fiscal year is greater than the cost of the equipment to be 
59.17 	purchased.
59.18 	(e) If the condition set out in paragraph (d) applies, the equipment may be purchased 
59.19 	from the food service fund.
59.20 	(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit 
59.21 	is not eliminated by revenues from food service operations in the next fiscal year, then the 
59.22 	deficit must be eliminated by a permanent fund transfer from the general fund at the end of 
59.23 	that second fiscal year. However, if a district contracts with a food service management 
59.24 	company during the period in which the deficit has accrued, the deficit must be eliminated 
59.25 	by a payment from the food service management company.
59.26 	(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund 
59.27 	for up to three years without making the permanent transfer if the district submits to the 
59.28 	commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at 
59.29 	the end of the third fiscal year.
59.30 	(h) If a surplus in the food service fund exists at the end of a fiscal year for three 
59.31 	successive years, a district may recode for that fiscal year the documented costs of lunchroom 
59.32 	supervision, lunchroom custodial services, lunchroom utilities, lunchroom furniture, and 
59.33 	other administrative costs of the food service program charged to the general fund according 
59.34 	to paragraph (c) and charge those costs to the food service fund identified by the 
60.1 	commissioner in a total amount not to exceed the amount of surplus in the food service 
60.2 	fund.
60.3 	(i) For purposes of this subdivision, "lunchroom furniture" means tables and chairs 
60.4 	regularly used by pupils in a lunchroom from which they may consume milk, meals, or 
60.5 	snacks in connection with school or community service activities.

60.6 	Sec. 2. Minnesota Statutes 2024, section 124D.119, subdivision 1, is amended to read:
60.7 		Subdivision 1.Summer Food Service Electronic Benefit Transfer Program 
60.8 	replacement aid. State funds are available to compensate department-approvedschool food 
60.9 	authorities who gather student data for the Summer Food Service Electronic Benefit Transfer
60.10 	Program sponsors. Reimbursement shall be made on by December 15 based on total meals 
60.11 	served by each sponsor from the end of the school year to the beginning of the next school 
60.12 	year the number of pupil units eligible during the Summer Electronic Benefit Transfer 
60.13 	Program eligibility year on a pro rata basis.

60.14 	Sec. 3. APPROPRIATIONS.
 60.15 		Subdivision 1.Department of Education. The sums indicated in this section are 
60.16 	appropriated from the general fund to the Department of Education for the fiscal years 
60.17 	designated. Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
60.18 		Subd. 2.Basic system support. (a) For basic system support aid under Minnesota 
60.19 	Statutes, section 134.355:

60.20		$
	17,883,000
	.....
	2026
	
60.21		$
	18,329,000
	.....
	2027
	
60.22 	(b) The 2026 appropriation includes $1,752,000 for 2025 and $16,131,000 for 2026.
60.23 	(c) The 2027 appropriation includes $1,792,000 for 2026 and $16,537,000 for 2027.
60.24 		Subd. 3.Electronic library for Minnesota. For statewide licenses to online databases 
60.25 	selected in cooperation with the Minnesota Office of Higher Education for school media 
60.26 	centers, public libraries, state government agency libraries, and public or private college or 
60.27 	university libraries:

60.28		$
	900,000
	.....
	2026
	
60.29		$
	900,000
	.....
	2027
	
60.30 		Subd. 4.School lunch. For school lunch aid under Minnesota Statutes, section 124D.111, 
60.31 	including the amounts for the free school meals program:

61.1		$
	265,107,000
	.....
	2026
	
61.2		$
	276,479,000
	.....
	2027
	
61.3 		Subd. 5.School breakfast. For school breakfast aid under Minnesota Statutes, section 
61.4 	124D.1158:

61.5		$
	56,996,000
	.....
	2026
	
61.6		$
	59,531,000
	.....
	2027
	
61.7 		Subd. 6.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
61.8 	section 124D.118:

61.9		$
	387,000
	.....
	2026
	
61.10		$
	387,000
	.....
	2027
	
61.11 		Subd. 7.Multicounty, multitype library systems. (a) For aid under Minnesota Statutes, 
61.12 	sections 134.353 and 134.354, to multicounty, multitype library systems:

61.13		$
	2,000,000
	.....
	2026
	
61.14		$
	2,000,000
	.....
	2027
	
61.15 	(b) The 2026 appropriation includes $200,000 for 2025 and $1,800,000 for 2026.
61.16 	(c) The 2027 appropriation includes $200,000 for 2026 and $1,800,000 for 2027.
61.17 		Subd. 8.Regional library telecommunications. (a) For regional library 
61.18 	telecommunications aid under Minnesota Statutes, section 134.355:

61.19		$
	2,300,000
	.....
	2026
	
61.20		$
	2,300,000
	.....
	2027
	
61.21 	(b) The 2026 appropriation includes $230,000 for 2025 and $2,070,000 for 2026.
61.22 	(c) The 2027 appropriation includes $230,000 for 2026 and $2,070,000 for 2027.
61.23 		Subd. 9.School library aid. (a) For school library aid under Minnesota Statutes, section 
61.24 	134.356:

61.25		$
	23,680,000
	.....
	2026
	
61.26		$
	23,603,000
	.....
	2027
	
61.27 	(b) The 2026 appropriation includes $2,378,000 for 2025 and $21,302,000 for 2026.
61.28 	(c) The 2027 appropriation includes $2,366,000 for 2026 and $21,237,000 for 2027.
61.29 		Subd. 10.Summer Electronic Benefit Transfer Program. To support local education 
61.30 	agencies uploading data for and administering the Summer Electronic Benefit Transfer 
61.31 	Program.

62.1		$
	150,000
	.....
	2026
	
62.2		$
	150,000
	.....
	2027

62.3 	ARTICLE 8
62.4 	EARLY CHILDHOOD EDUCATION

62.5 	Section 1. APPROPRIATIONS.
 62.6 		Subdivision 1.Department of Education. The sums indicated in this section are 
62.7 	appropriated from the general fund to the Department of Education in the fiscal years 
62.8 	designated.
62.9 		Subd. 2.Kindergarten entry assessment. (a) For the kindergarten entry assessment 
62.10 	under Minnesota Statutes, section 124D.162:

62.11		$
	2,357,000
	.....
	2026
	
62.12		$
	1,743,000
	.....
	2027
	
62.13 	(b) The base for fiscal year 2028 and later is $1,743,000.
62.14 		Subd. 3.Early childhood and family education teacher shortage. (a) For transfer to 
62.15 	the Office of Higher Education for grants to Minnesota institutions of higher education to 
62.16 	address the early childhood and family education teacher shortage:

62.17		$
	500,000
	.....
	2026
	
62.18		$
	500,000
	.....
	2027
	
62.19 	(b) Grant funds may be used to provide tuition and other supports to students.
62.20 	(c) Up to five percent of the grant amount is available for grant administration and 
62.21 	monitoring.
62.22 	(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

62.23 	ARTICLE 9
62.24 	COMMUNITY EDUCATION AND LIFELONG LEARNING

62.25 	Section 1. APPROPRIATIONS.
 62.26 		Subdivision 1.Department of Education. The sums indicated in this section are 
62.27 	appropriated from the general fund to the Department of Education for the fiscal years 
62.28 	designated. Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
62.29 		Subd. 2.Adult basic education aid. (a) For adult basic education aid under Minnesota 
62.30 	Statutes, section 124D.531:

63.1		$
	55,281,000
	.....
	2026
	
63.2		$
	56,919,000
	.....
	2027
	
63.3 	(b) The 2026 appropriation includes $5,401,000 for 2025 and $49,880,000 for 2026.
63.4 	(c) The 2027 appropriation includes $5,542,000 for 2026 and $51,377,000 for 2027.
63.5 		Subd. 3.Adults with disabilities program aid. (a) For adults with disabilities programs 
63.6 	under Minnesota Statutes, section 124D.56:

63.7		$
	1,517,000
	.....
	2026
	
63.8		$
	1,534,000
	.....
	2027
	
63.9 	(b) The 2026 appropriation includes $149,000 for 2025 and $1,368,000 for 2026.
63.10 	(c) The 2027 appropriation includes $151,000 for 2026 and $1,383,000 for 2027.
63.11 		Subd. 4.Community education aid. (a) For community education aid under Minnesota 
63.12 	Statutes, section 124D.20:

63.13		$
	10,081,000
	.....
	2026
	
63.14		$
	10,442,000
	.....
	2027
	
63.15 	(b) The 2026 appropriation includes $872,000 for 2025 and $9,209,000 for 2026.
63.16 	(c) The 2027 appropriation includes $1,023,000 for 2026 and $9,419,000 for 2027.
63.17 		Subd. 5.Deaf, deafblind, and hard-of-hearing adults. For programs for deaf, deafblind, 
63.18 	and hard-of-hearing adults under Minnesota Statutes, section 124D.57:

63.19		$
	70,000
	.....
	2026
	
63.20		$
	70,000
	.....
	2027
	
63.21 		Subd. 6.High school equivalency tests. For payment of the costs of the 
63.22 	commissioner-selected high school equivalency tests under Minnesota Statutes, section 
63.23 	124D.55:

63.24		$
	125,000
	.....
	2026
	
63.25		$
	125,000
	.....
	2027
	
63.26 		Subd. 7.Neighborhood partnership grants.  (a) For neighborhood partnership grants 
63.27 	under Minnesota Statutes, section 124D.99:

63.28		$
	2,600,000
	.....
	2026
	
63.29		$
	2,600,000
	.....
	2027
	
63.30 	(b) Of the amounts in paragraph (a), $1,300,000 each year is for the Northside 
63.31 	Achievement Zone and $1,300,000 each year is for the St. Paul Promise Neighborhood.
64.1 		Subd. 8.Regional neighborhood partnership grants. (a) For regional neighborhood 
64.2 	partnership grants under Minnesota Statutes, section 124D.99:

64.3		$
	1,400,000
	.....
	2026
	
64.4		$
	1,400,000
	.....
	2027
	
64.5 	(b) Of the amounts in paragraph (a), $200,000 each year is for the following programs:
64.6 	(1) Northfield Healthy Community Initiative in Northfield;
64.7 	(2) Red Wing Youth Outreach Program in Red Wing;
64.8 	(3) United Way of Central Minnesota in St. Cloud;
64.9 	(4) Austin Aspires in Austin;
64.10 	(5) Rochester Area Foundation in Rochester;
64.11 	(6) Greater Twin Cities United Way for Generation Next; and
64.12 	(7) Children First and Partnership for Success in St. Louis Park.
64.13 		Subd. 9.School-age care aid. (a) For school-age care aid under Minnesota Statutes, 
64.14 	section 124D.22:

64.15		$
	1,000
	.....
	2026
	
64.16		$
	1,000
	.....
	2027
	
64.17 	(b) The 2026 appropriation includes $0 for 2025 and $1,000 for 2026.
64.18 	(c) The 2027 appropriation includes $0 for 2026 and $1,000 for 2027.

64.19 	ARTICLE 10
64.20 	STATE AGENCIES

64.21 	Section 1. Laws 2023, chapter 55, article 12, section 17, subdivision 2, as amended by 
64.22 	Laws 2024, chapter 115, article 10, section 3, is amended to read:
64.23 		Subd. 2.Department. (a) For the Department of Education:

64.24		$
	47,005,000
	.....
	2024
	
64.25		$
	40,052,000
	.....
	2025
	
64.26 	Of these amounts:
64.27 	(1) $405,000 each year is for the Board of School Administrators;
64.28 	(2) $1,000,000 each year is for regional centers of excellence under Minnesota Statutes, 
64.29 	section 120B.115;
65.1 	(3) $720,000 each year is for implementing Minnesota's Learning for English Academic 
65.2 	Proficiency and Success Act (LEAPS) under Laws 2014, chapter 272, article 1, as amended;
65.3 	(4) $480,000 each year is for the Department of Education's mainframe update;
65.4 	(5) $7,500,000 in fiscal year 2024 only is for legal fees and costs associated with 
65.5 	litigation;
65.6 	(6) $595,000 in fiscal year 2024 and $2,609,000 in fiscal year 2025 are for modernizing 
65.7 	district data submissions. The base for fiscal year 2026 and later is $2,359,000;
65.8 	(7) $573,000 each year is for engagement and rulemaking related to Specific Learning 
65.9 	Disability;
65.10 	(8) $150,000 each year is for an ethnic studies specialist in the academic standards 
65.11 	division to provide support to the ethnic studies working group and to school districts seeking 
65.12 	to establish or strengthen ethnic studies courses;
65.13 	(9) $150,000 each year is for the comprehensive school mental health services lead under 
65.14 	Minnesota Statutes, section 127A.215;
65.15 	(10) $150,000 each year is for a school health services specialist under Minnesota 
65.16 	Statutes, section 121A.20;
65.17 	(11) $2,000,000 each year is for the Office of the Inspector General established under 
65.18 	Minnesota Statutes, section 127A.21;
65.19 	(12) $800,000 each year is for audit and internal control resources;
65.20 	(13) $2,000,000 in fiscal year 2024 only is for information technology infrastructure 
65.21 	and portfolio resources;
65.22 	(14) $2,000,000 each year is for staffing the Equity, Diversity and Inclusion (EDI) Center 
65.23 	at the Department of Education;
65.24 	(15) $275,000 in fiscal year 2024 and $175,000 in fiscal year 2025 are for administrative 
65.25 	expenses for unemployment aid; and
65.26 	(16) $130,000 in fiscal year 2025 only is for the state school librarian under Minnesota 
65.27 	Statutes, section 127A.151.
65.28 	(b) None of the amounts appropriated under this subdivision may be used for Minnesota's 
65.29 	Washington, D.C., office.
65.30 	(c) The expenditures of federal grants and aids as shown in the biennial budget document 
65.31 	and its supplements are approved and appropriated and must be spent as indicated.
66.1 	(d) The base for fiscal year 2026 and later is $39,667,000.
66.2 	(e) All of the amounts appropriated under this subdivision are available until June 30, 
66.3 	2027.

66.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

66.5 	Sec. 2. Laws 2023, chapter 55, article 12, section 19, is amended to read:
66.6 	Sec. 19. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 66.7 	(a) The sums indicated in this section are appropriated from the general fund to the 
66.8 	Perpich Center for Arts Education for the fiscal years designated:

66.9		$
	9,243,000
	.....
	2024
	
66.10		$
	8,435,000
	.....
	2025
	
66.11 	Of these amounts:
66.12 	(1) $1,150,000 in fiscal year 2024 only is for furniture replacement in the agency's 
66.13 	dormitory and classrooms, including costs associated with moving and disposal. These 
66.14 	funds may also be used for equipment and technology. This appropriation is available until 
66.15 	June 30, 2027; and
66.16 	(2) $24,000 each year is for unemployment costs.
66.17 	(b) Except for the amount in (1), any balance in the first year does not cancel but is 
66.18 	available in the second year.

66.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

66.20 	Sec. 3. Laws 2023, chapter 63, article 9, section 8, is amended to read:

66.21	Sec. 8. EDUCATION
 	$
	180,000
	$
	120,000
	
66.22 	This appropriation is available until June 30, 
66.23 	2027.

66.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

66.25 	Sec. 4. Laws 2024, chapter 115, article 22, section 3, is amended to read:

66.26	Sec. 3. COMMISSIONER OF EDUCATION
 	$
	1,882,000
	$
	1,715,000
	
66.27 	(a) Summer EBT. $1,882,000 in fiscal year 
66.28 	2024 and $1,542,000 in fiscal year 2025 are 
67.1 	for administration of the summer electronic 
67.2 	benefits transfer program under Public Law 
67.3 	117-328. The base for this appropriation is 
67.4 	$572,000 in fiscal year 2026 and $572,000 in 
67.5 	fiscal year 2027. This appropriation is 
67.6 	available until June 30, 2027.
67.7 	(b) Operating Adjustment for Department 
67.8 	of Children, Youth, and Families 
67.9 	Transition. $173,000 in fiscal year 2025 is to 
67.10 	maintain current levels of service after the 
67.11 	transition of staff and resources to the 
67.12 	Department of Children, Youth, and Families. 
67.13 	The base for this appropriation is $345,000 in 
67.14 	fiscal year 2026 and $345,000 in fiscal year 
67.15 	2027. This appropriation is available until June 
67.16 	30, 2027.
67.17 	(c) Base Level Adjustment. The general fund 
67.18 	base is increased by $917,000 in fiscal year 
67.19 	2026 and increased by $917,000 in fiscal year 
67.20 	2027.

67.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

67.22 	Sec. 5. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 67.23 		Subdivision 1.Department of Education. The sums indicated in this section are 
67.24 	appropriated from the general fund to the Department of Education for the fiscal years 
67.25 	designated. Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
67.26 		Subd. 2.Department. (a) For the Department of Education:

67.27		$
	46,628,000
	.....
	2026
	
67.28		$
	41,316,000
	.....
	2027
	
67.29 	Of these amounts:
67.30 	(1) $405,000 each year is for the Board of School Administrators;
67.31 	(2) $1,000,000 each year is for regional centers of excellence under Minnesota Statutes, 
67.32 	section 120B.115;
68.1 	(3) $720,000 each year is for implementing Minnesota's Learning for English Academic 
68.2 	Proficiency and Success Act (LEAPS) under Laws 2014, chapter 272, article 1, as amended;
68.3 	(4) $480,000 each year is for the Department of Education's mainframe update;
68.4 	(5) $6,000,000 in fiscal year 2026 only is for legal fees and costs associated with 
68.5 	litigation;
68.6 	(6) $2,359,000 each year is for modernizing district data submissions;
68.7 	(7) $573,000 each year is for engagement and rulemaking related to Specific Learning 
68.8 	Disability;
68.9 	(8) $150,000 each year is for an ethnic studies specialist in the academic standards 
68.10 	division to provide support to the ethnic studies working group and to school districts seeking 
68.11 	to establish or strengthen ethnic studies courses;
68.12 	(9) $150,000 each year is for the comprehensive school mental health services lead under 
68.13 	Minnesota Statutes, section 127A.215;
68.14 	(10) $150,000 each year is for a school health services specialist under Minnesota 
68.15 	Statutes, section 121A.20;
68.16 	(11) $2,000,000 each year is for the Office of the Inspector General established under 
68.17 	Minnesota Statutes, section 127A.21;
68.18 	(12) $800,000 each year is for audit and internal control resources;
68.19 	(13) $2,000,000 each year is for staffing the Equity, Diversity and Inclusion (EDI) Center 
68.20 	at the Department of Education;
68.21 	(14) $175,000 each year is for administrative expenses for unemployment aid;
68.22 	(15) $550,000 each year is for fraud prevention and detection;
68.23 	(16) $120,000 each year is to support schools and districts in accessing resources on 
68.24 	cannabis use and substance use;
68.25 	(17) $572,000 each year is for administration of the Summer Electronic Benefits Transfer 
68.26 	Program; and
68.27 	(18) $345,000 each year is to maintain current levels of service after the transition of 
68.28 	staff and resources to the Department of Children, Youth, and Families.
68.29 	(b) None of the amounts appropriated under this subdivision may be used for Minnesota's 
68.30 	Washington, D.C., office.
69.1 	(c) The expenditures of federal grants and aids as shown in the biennial budget document 
69.2 	and its supplements are approved and appropriated and must be spent as indicated.
69.3 	(d) The base for fiscal year 2028 and later is $41,316,000.

69.4 	Sec. 6. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 69.5 	(a) The sums indicated in this section are appropriated from the general fund to the 
69.6 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

69.7		$
	17,838,000
	.....
	2026
	
69.8		$
	17,937,000
	.....
	2027
	
69.9 	Of these amounts:
69.10 	(1) $185,000 in fiscal year 2026 and $185,000 in fiscal year 2027 are for a mental health 
69.11 	day treatment program. These funds are available until June 30, 2027. The base amount for 
69.12 	the allocation under this clause is $185,000 in fiscal year 2028 and later; and
69.13 	(2) $321,000 each year is for unemployment costs.
69.14 	(b) The base for fiscal year 2028 is $17,937,000 and the base for fiscal year 2029 and 
69.15 	later is $17,937,000.
69.16 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

69.17 	Sec. 7. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 69.18 	(a) The sums indicated in this section are appropriated from the general fund to the 
69.19 	Perpich Center for Arts Education for the fiscal years designated:

69.20		$
	8,637,000
	.....
	2026
	
69.21		$
	8,818,000
	.....
	2027
	
69.22 	(b) $24,000 each year is for unemployment costs.
69.23 	(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

69.24 	Sec. 8. APPROPRIATIONS; PROFESSIONAL EDUCATOR LICENSING AND 
69.25 	STANDARDS BOARD.
 69.26 		Subdivision 1.Professional Educator Licensing and Standards Board. (a) The sums 
69.27 	indicated in this section are appropriated from the general fund to the Professional Educator 
69.28 	Licensing and Standards Board for the fiscal years designated:

70.1		$
	3,703,000
	.....
	2026
	
70.2		$
	3,776,000
	.....
	2027
	
70.3 	(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
70.4 		Subd. 2.Licensure by portfolio. (a) For licensure by portfolio:

70.5		$
	25,000
	.....
	2026
	
70.6		$
	25,000
	.....
	2027
	
70.7 	(b) This appropriation is from the education licensure portfolio account in the special 
70.8 	revenue fund.

70.9 	ARTICLE 11
70.10 	FORECAST
70.11 	A. GENERAL EDUCATION

70.12 	Section 1. Laws 2023, chapter 55, article 1, section 36, subdivision 2, as amended by Laws 
70.13 	2024, chapter 81, section 1, and Laws 2024, chapter 115, article 1, section 15, is amended 
70.14 	to read:
70.15 		Subd. 2.General education aid. (a) For general education aid under Minnesota Statutes, 
70.16 	section 126C.13, subdivision 4:

70.17		$
	8,103,909,000
	.....
	2024
	
70.1970.18
		$
	8,333,843,000
8,277,423,000
	.....
	2025
	
70.20 	(b) The 2024 appropriation includes $707,254,000 for 2023 and $7,396,655,000 for 
70.21 	2024.
70.22 	(c) The 2025 appropriation includes $771,421,000 for 2024 and $7,562,422,000
70.23 	$7,506,002,000 for 2025.

70.24 	Sec. 2. Laws 2023, chapter 55, article 1, section 36, subdivision 3, as amended by Laws 
70.25 	2024, chapter 81, section 2, is amended to read:
70.26 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
70.27 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
70.28 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

70.29		$
	23,000
	.....
	2024
	
70.3170.30
		$
	25,000
23,000
	.....
	2025

71.1 	Sec. 3. Laws 2023, chapter 55, article 1, section 36, subdivision 4, as amended by Laws 
71.2 	2024, chapter 81, section 3, is amended to read:
71.3 		Subd. 4.Abatement aid. (a) For abatement aid under Minnesota Statutes, section 
71.4 	127A.49:

71.5		$
	2,318,000
	.....
	2024
	
71.771.6
		$
	2,516,000
1,503,000
	.....
	2025
	
71.8 	(b) The 2024 appropriation includes $126,000 for 2023 and $2,192,000 for 2024.
71.9 	(c) The 2025 appropriation includes $243,000 for 2024 and $2,273,000 $1,260,000 for 
71.10 	2025.

71.11 	Sec. 4. Laws 2023, chapter 55, article 1, section 36, subdivision 5, as amended by Laws 
71.12 	2024, chapter 81, section 4, is amended to read:
71.13 		Subd. 5.Consolidation transition aid. (a) For districts consolidating under Minnesota 
71.14 	Statutes, section 123A.485:

71.15		$
	7,000
	.....
	2024
	
71.1771.16
		$
	180,000
0
	.....
	2025
	
71.18 	(b) The 2024 appropriation includes $7,000 for 2023 and $0 for 2024.
71.19 	(c) The 2025 appropriation includes $0 for 2024 and $180,000 $0 for 2025.

71.20 	Sec. 5. Laws 2023, chapter 55, article 1, section 36, subdivision 7, as amended by Laws 
71.21 	2024, chapter 81, section 6, is amended to read:
71.22 		Subd. 7.Nonpublic pupil transportation. (a) For nonpublic pupil transportation aid 
71.23 	under Minnesota Statutes, section 123B.92, subdivision 9:

71.24		$
	22,979,000
	.....
	2024
	
71.2671.25
		$
	27,177,000
27,198,000
	.....
	2025
	
71.27 	(b) The 2024 appropriation includes $2,115,000 for 2023 and $20,864,000 for 2024.
71.28 	(c) The 2025 appropriation includes $2,318,000 for 2024 and $24,859,000 $24,480,000
71.29 	for 2025.

72.1 	Sec. 6. Laws 2023, chapter 55, article 1, section 36, subdivision 9, as amended by Laws 
72.2 	2024, chapter 81, section 7, is amended to read:
72.3 		Subd. 9.Career and technical aid. (a) For career and technical aid under Minnesota 
72.4 	Statutes, section 124D.4531, subdivision 1b:

72.5		$
	1,664,000
	.....
	2024
	
72.772.6
		$
	874,000
937,000
	.....
	2025
	
72.8 	(b) The 2024 appropriation includes $183,000 for 2023 and $1,481,000 for 2024.
72.9 	(c) The 2025 appropriation includes $164,000 for 2024 and $710,000 $773,000 for 2025.
72.10 	B. EDUCATION EXCELLENCE

72.11 	Sec. 7. Laws 2023, chapter 55, article 2, section 64, subdivision 2, as amended by Laws 
72.12 	2024, chapter 81, section 8, and Laws 2024, chapter 115, article 2, section 13, is amended 
72.13 	to read:
72.14 		Subd. 2.Achievement and integration aid. (a) For achievement and integration aid 
72.15 	under Minnesota Statutes, section 124D.862:

72.16		$
	82,818,000
	.....
	2024
	
72.1872.17
		$
	85,043,000
84,173,000
	.....
	2025
	
72.19 	(b) The 2024 appropriation includes $8,172,000 for 2023 and $74,646,000 for 2024.
72.20 	(c) The 2025 appropriation includes $8,294,000 for 2024 and $76,749,000 $75,879,000
72.21 	for 2025.

72.22 	Sec. 8. Laws 2023, chapter 55, article 2, section 64, subdivision 6, as amended by Laws 
72.23 	2024, chapter 81, section 9, and Laws 2024, chapter 115, article 6, section 3, is amended 
72.24 	to read:
72.25 		Subd. 6.Charter school building lease aid. (a) For building lease aid under Minnesota 
72.26 	Statutes, section 124E.22:

72.27		$
	91,457,000
	.....
	2024
	
72.2972.28
		$
	94,906,000
93,760,000
	.....
	2025
	
72.30 	(b) The 2024 appropriation includes $9,047,000 for 2023 and $82,410,000 for 2024.
72.31 	(c) The 2025 appropriation includes $9,156,000 for 2024 and $85,750,000 $84,604,000
72.32 	for 2025.

73.1 	Sec. 9. Laws 2023, chapter 55, article 2, section 64, subdivision 23, as amended by Laws 
73.2 	2024, chapter 81, section 11, is amended to read:
73.3 		Subd. 23.Literacy incentive aid. (a) For literacy incentive aid under Minnesota Statutes, 
73.4 	section 124D.98:

73.5		$
	41,071,000
	.....
	2024
	
73.773.6
		$
	41,588,000
40,570,000
	.....
	2025
	
73.8 	(b) The 2024 appropriation includes $4,606,000 for 2023 and $36,465,000 for 2024.
73.9 	(c) The 2025 appropriation includes $4,051,000 for 2024 and $37,537,000 $36,519,000
73.10 	for 2025.
73.11 	C. TEACHERS

73.12 	Sec. 10. Laws 2023, chapter 55, article 5, section 64, subdivision 3, as amended by Laws 
73.13 	2024, chapter 81, section 14, and Laws 2024, chapter 115, article 5, section 11, is amended 
73.14 	to read:
73.15 		Subd. 3.Alternative teacher compensation aid. (a) For alternative teacher compensation 
73.16 	aid under Minnesota Statutes, section 122A.415, subdivision 4:

73.17		$
	88,706,000
	.....
	2024
	
73.1973.18
		$
	89,012,000
88,206,000
	.....
	2025
	
73.20 	(b) The 2024 appropriation includes $8,824,000 for fiscal year 2023 and $79,882,000 
73.21 	for fiscal year 2024.
73.22 	(c) The 2025 appropriation includes $8,875,000 for fiscal year 2024 and $80,137,000
73.23 	$79,331,000 for fiscal year 2025.

73.24 	Sec. 11. Laws 2023, chapter 55, article 5, section 64, subdivision 14, as amended by Laws 
73.25 	2024, chapter 81, section 15, is amended to read:
73.26 		Subd. 14.Student support personnel aid. (a) For aid to support schools in addressing 
73.27 	students' social, emotional, and physical health under Minnesota Statutes, section 124D.901:

73.28		$
	30,255,000
	.....
	2024
	
73.3073.29
		$
	36,498,000
36,215,000
	.....
	2025
	
73.31 	(b) The 2024 appropriation includes $0 for fiscal year 2023 and $30,255,000 for fiscal 
73.32 	year 2024.
74.1 	(c) The 2025 appropriation includes $3,361,000 for fiscal year 2024 and $33,137,000
74.2 	$32,854,000 for fiscal year 2025.
74.3 	D. SPECIAL EDUCATION

74.4 	Sec. 12. Laws 2023, chapter 55, article 7, section 18, subdivision 2, as amended by Laws 
74.5 	2024, chapter 81, section 16, is amended to read:
74.6 		Subd. 2.Aid for children with disabilities. (a) For aid under Minnesota Statutes, section 
74.7 	125A.75, subdivision 3, for children with disabilities placed in residential facilities within 
74.8 	the district boundaries for whom no district of residence can be determined:

74.9		$
	1,597,000
	.....
	2024
	
74.1174.10
		$
	1,844,000
1,952,000
	.....
	2025
	
74.12 	(b) If the appropriation for either year is insufficient, the appropriation for the other year 
74.13 	is available.

74.14 	Sec. 13. Laws 2023, chapter 55, article 7, section 18, subdivision 4, as amended by Laws 
74.15 	2024, chapter 81, section 18, and Laws 2024, chapter 115, article 7, section 4, is amended 
74.16 	to read:
74.17 		Subd. 4.Special education; regular. (a) For special education aid under Minnesota 
74.18 	Statutes, section 125A.75:

74.19		$
	2,288,826,000
	.....
	2024
	
74.2174.20
		$
	2,486,181,000
2,563,710,000
	.....
	2025
	
74.22 	(b) The 2024 appropriation includes $229,860,000 for 2023 and $2,058,966,000 for 
74.23 	2024.
74.24 	(c) The 2025 appropriation includes $289,842,000 for 2024 and $2,196,339,000
74.25 	$2,273,868,000 for 2025.

74.26 	Sec. 14. Laws 2023, chapter 55, article 7, section 18, subdivision 7, as amended by Laws 
74.27 	2024, chapter 81, section 20, is amended to read:
74.28 		Subd. 7.Travel for home-based services. (a) For aid for teacher travel for home-based 
74.29 	services under Minnesota Statutes, section 125A.75, subdivision 1:

74.30		$
	425,000
	.....
	2024
	
74.3274.31
		$
	475,000
565,000
	.....
	2025
	
75.1 	(b) The 2024 appropriation includes $32,000 for 2023 and $393,000 for 2024.
75.2 	(c) The 2025 appropriation includes $43,000 for 2024 and $432,000 $522,000 for 2025.
75.3 	E. FACILITIES

75.4 	Sec. 15. Laws 2023, chapter 55, article 8, section 19, subdivision 6, as amended by Laws 
75.5 	2024, chapter 81, section 22, and Laws 2024, chapter 115, article 8, section 5, is amended 
75.6 	to read:
75.7 		Subd. 6.Long-term facilities maintenance equalized aid. (a) For long-term facilities 
75.8 	maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

75.9		$
	107,905,000
	.....
	2024
	
75.1175.10
		$
	107,865,000
107,270,000
	.....
	2025
	
75.12 	(b) The 2024 appropriation includes $10,821,000 for 2023 and $97,084,000 for 2024.
75.13 	(c) The 2025 appropriation includes $10,787,000 for 2024 and $97,078,000 $96,483,000
75.14 	for 2025.
75.15 	F. NUTRITION

75.16 	Sec. 16. Laws 2023, chapter 18, section 4, subdivision 2, as amended by Laws 2023, 
75.17 	chapter 55, article 9, section 16, Laws 2024, chapter 81, section 23, and Laws 2024, chapter 
75.18 	115, article 9, section 8, is amended to read:
75.19 		Subd. 2.School lunch. For school lunch aid under Minnesota Statutes, section 124D.111, 
75.20 	including the amounts for the free school meals program:

75.21		$
	218,801,000
	.....
	2024
	
75.2375.22
		$
	239,686,000
252,109,000
	.....
	2025

75.24 	Sec. 17. Laws 2023, chapter 18, section 4, subdivision 3, as amended by Laws 2023, 
75.25 	chapter 55, article 9, section 17, Laws 2024, chapter 81, section 24, and Laws 2024, chapter 
75.26 	115, article 9, section 9, is amended to read:
75.27 		Subd. 3.School breakfast. For school breakfast aid under Minnesota Statutes, section 
75.28 	124D.1158:

75.29		$
	44,178,000
	.....
	2024
	
75.3175.30
		$
	48,747,000
54,134,000
	.....
	2025

76.1 	Sec. 18. Laws 2023, chapter 55, article 9, section 18, subdivision 4, as amended by Laws 
76.2 	2024, chapter 81, section 25, is amended to read:
76.3 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
76.4 	section 124D.118:

76.5		$
	428,000
	.....
	2024
	
76.776.6
		$
	428,000
387,000
	.....
	2025

76.8 	Sec. 19. Laws 2023, chapter 55, article 9, section 18, subdivision 8, as amended by Laws 
76.9 	2024, chapter 81, section 26, is amended to read:
76.10 		Subd. 8.School library aid. (a) For school library aid under Minnesota Statutes, section 
76.11 	134.356 124D.992:

76.12		$
	21,586,000
	.....
	2024
	
76.1476.13
		$
	23,903,000
23,800,000
	.....
	2025
	
76.15 	(b) The 2024 appropriation includes $0 for 2023 and $21,586,000 for 2024.
76.16 	(c) The 2025 appropriation includes $2,398,000 for 2024 and $21,505,000 $21,402,000
76.17 	for 2025.
76.18 	G. EARLY EDUCATION

76.19 	Sec. 20. Laws 2023, chapter 54, section 20, subdivision 7, as amended by Laws 2024, 
76.20 	chapter 81, section 27, is amended to read:
76.21 		Subd. 7.Early childhood family education aid. (a) For early childhood family education 
76.22 	aid under Minnesota Statutes, section 124D.135 142D.11:

76.23		$
	37,209,000
	.....
	2024
	
76.2576.24
		$
	38,985,000
37,881,000
	.....
	2025
	
76.26 	(b) The 2024 appropriation includes $3,518,000 for 2023 and $33,691,000 for 2024.
76.27 	(c) The 2025 appropriation includes $3,743,000 for 2024 and $35,242,000 $34,138,000
76.28 	for 2025.

77.1 	Sec. 21. Laws 2023, chapter 54, section 20, subdivision 9, as amended by Laws 2024, 
77.2 	chapter 81, section 28, is amended to read:
77.3 		Subd. 9.Developmental screening aid. (a) For developmental screening aid under 
77.4 	Minnesota Statutes, sections 121A.17 142D.091 and 121A.19 142D.093:

77.5		$
	4,148,000
	.....
	2024
	
77.777.6
		$
	4,151,000
4,127,000
	.....
	2025
	
77.8 	(b) The 2024 appropriation includes $349,000 for 2023 and $3,799,000 for 2024.
77.9 	(c) The 2025 appropriation includes $422,000 for 2024 and $3,729,000 $3,705,000 for 
77.10 	2025.

77.11 	Sec. 22. Laws 2023, chapter 54, section 20, subdivision 17, as amended by Laws 2024, 
77.12 	chapter 81, section 29, is amended to read:
77.13 		Subd. 17.Home visiting aid. (a) For home visiting aid under Minnesota Statutes, section 
77.14 	124D.135 142D.11:

77.15		$
	382,000
	.....
	2024
	
77.1777.16
		$
	300,000
290,000
	.....
	2025
	
77.18 	(b) The 2024 appropriation includes $41,000 for 2023 and $341,000 for 2024.
77.19 	(c) The 2025 appropriation includes $37,000 for 2024 and $263,000 $253,000 for 2025.
77.20 	H. COMMUNITY EDUCATION AND LIFELONG LEARNING

77.21 	Sec. 23. Laws 2023, chapter 55, article 11, section 11, subdivision 2, as amended by Laws 
77.22 	2024, chapter 81, section 30, is amended to read:
77.23 		Subd. 2.Adult basic education aid. (a) For adult basic education aid under Minnesota 
77.24 	Statutes, section 124D.531:

77.25		$
	52,566,000
	.....
	2024
	
77.2777.26
		$
	53,684,000
53,880,000
	.....
	2025
	
77.28 	(b) The 2024 appropriation includes $5,179,000 for 2023 and $47,387,000 for 2024.
77.29 	(c) The 2025 appropriation includes $5,265,000 for 2024 and $48,419,000 $48,615,000
77.30 	for 2025.

78.1 	Sec. 24. Laws 2023, chapter 55, article 11, section 11, subdivision 3, as amended by Laws 
78.2 	2024, chapter 81, section 31, is amended to read:
78.3 		Subd. 3.Adults with disabilities program aid. (a) For adults with disabilities programs 
78.4 	under Minnesota Statutes, section 124D.56:

78.5		$
	710,000
	.....
	2024
	
78.778.6
		$
	1,520,000
1,416,000
	.....
	2025
	
78.8 	(b) The 2024 appropriation includes $71,000 for 2023 and $639,000 for 2024.
78.9 	(c) The 2025 appropriation includes $71,000 for 2024 and $1,449,000 $1,345,000 for 
78.10 	2025.

78.11 	Sec. 25. Laws 2023, chapter 55, article 11, section 11, subdivision 5, as amended by Laws 
78.12 	2024, chapter 81, section 32, is amended to read:
78.13 		Subd. 5.Community education aid. (a) For community education aid under Minnesota 
78.14 	Statutes, section 124D.20:

78.15		$
	98,000
	.....
	2024
	
78.1778.16
		$
	7,857,000
7,859,000
	.....
	2025
	
78.18 	(b) The 2024 appropriation includes $14,000 for 2023 and $84,000 for 2024.
78.19 	(c) The 2025 appropriation includes $9,000 for 2024 and $7,848,000 $7,850,000 for 
78.20 	2025.

78.21 	Sec. 26. Laws 2023, chapter 55, article 11, section 11, subdivision 10, as amended by 
78.22 	Laws 2024, chapter 81, section 33, is amended to read:
78.23 		Subd. 10.School-age care aid. (a) For school-age care aid under Minnesota Statutes, 
78.24 	section 124D.22:

78.25		$
	0
	.....
	2024
	
78.2778.26
		$
	1,000
0
	.....
	2025
	
78.28 	(b) The 2024 appropriation includes $0 for 2023 and $0 for 2024.
78.29 	(c) The 2025 appropriation includes $0 for 2024 and $1,000 $0 for 2025.

78.30 	Sec. 27. EFFECTIVE DATE.
 78.31 	Sections 1 to 26 are effective the day following final enactment.

	ARTICLE 1	GENERAL EDUCATION........	Page.Ln 2.2	
	ARTICLE 2	EDUCATION EXCELLENCE........	Page.Ln 15.1	
	ARTICLE 3	TEACHERS........	Page.Ln 28.24	
	ARTICLE 4	AMERICAN INDIAN EDUCATION........	Page.Ln 48.26	
	ARTICLE 5	SPECIAL EDUCATION........	Page.Ln 52.1	
	ARTICLE 6	FACILITIES........	Page.Ln 54.7	
	ARTICLE 7	SCHOOL NUTRITION AND LIBRARIES........	Page.Ln 58.20	
	ARTICLE 8	EARLY CHILDHOOD EDUCATION........	Page.Ln 62.3	
	ARTICLE 9	COMMUNITY EDUCATION AND LIFELONG LEARNING........	Page.Ln 62.23	
	ARTICLE 10	STATE AGENCIES........	Page.Ln 64.19	
	ARTICLE 11	FORECAST........	Page.Ln 70.9	

APPENDIX 

Repealed Minnesota Statutes: 25-00210 

122A.414 ALTERNATIVE TEACHER PAY.Subdivision 1.Restructured pay system. 
A restructured alternative teacher professional pay system is established under subdivision 2 to provide incentives to encourage teachers to improve their knowledge and instructional skills in order to improve student learning and for school districts, intermediate school districts, cooperative units, as defined in section 123A.24, subdivision 2, and charter schools to recruit and retain qualified teachers, encourage qualified teachers to undertake challenging assignments, and support teachers' roles in improving students' educational achievement. 

Subd. 2.Alternative teacher professional pay system. 
(a) To participate in this program, a school district, an intermediate school district consistent with paragraph (d), a school site, or a charter school must have a comprehensive achievement and civic readiness plan under section 120B.11 and an alternative teacher professional pay system agreement under paragraph (b). A charter school participant also must comply with subdivision 2a. 

(b) The alternative teacher professional pay system agreement must: 

(1) describe how teachers can achieve career advancement and additional compensation; 

(2) describe how the school district, intermediate school district, school site, or charter school will provide teachers with career advancement options that allow teachers to retain primary roles in student instruction and facilitate site-focused professional development that helps other teachers improve their skills; 

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation paid before implementing the pay system from being reduced as a result of participating in this system, base at least 60 percent of any compensation increase on teacher performance using: 

(i) schoolwide student achievement gains under section 120B.35 or locally selected standardized assessment outcomes, or both; 

(ii) measures of student growth and literacy that may include value-added models or student learning goals, consistent with section 122A.40, subdivision 8, paragraph (b), clause (9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures that include the academic literacy, oral academic language, and achievement of English learners under section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, subdivision 5, paragraph (b), clause (10); and 

(iii) an objective evaluation program under section 122A.40, subdivision 8, paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2); 

(4) provide for participation in job-embedded learning opportunities such as professional learning communities to improve instructional skills and learning that are aligned with student needs under section 120B.11, consistent with the staff development plan under section 122A.60 and led during the school day by trained teacher leaders such as master or mentor teachers; 

(5) allow any teacher in a participating school district, intermediate school district, school site, or charter school that implements an alternative pay system to participate in that system without any quota or other limit; and 

(6) encourage collaboration rather than competition among teachers. 

(c) The alternative teacher professional pay system may: 

(1) include a hiring bonus or other added compensation to provide students with equitable access to teachers who, consistent with section 120B.11, subdivision 2, clause (3): 

(i) are identified as effective or highly effective under the local teacher professional review cycle or, when being considered for hire as first-year teachers, have demonstrated skills during student teaching for being highly effective at closing achievement gaps; 

(ii) work in a high-need or hard-to-fill position; or 

(iii) are hired to work in a hard-to-staff school such as a school with a majority of students whose families meet federal poverty guidelines, a geographically isolated school, or a school identified by the state as eligible for targeted programs or services for its students; 

(2) include incentives for teachers to obtain a master's degree or other advanced certification with at least 18 credits in their content field of licensure required for teaching concurrent enrollment or college in the schools courses, or to pursue the training or education necessary to obtain an additional licensure in shortage areas identified by the district or charter school; or 

(3) help fund a Grow Your Own new teacher initiative involving nonlicensed educational professionals, including paraprofessionals and cultural liaisons. 

(d) An intermediate school district under this subdivision must demonstrate in a form and manner determined by the commissioner that it uses the aid it receives under this section for activities identified in the alternative teacher professional pay system agreement. 

Subd. 3.Report. 
(a) Participating districts, intermediate school districts, cooperatives, school sites, and charter schools must report on the implementation and effectiveness of the alternative teacher professional pay system, particularly addressing each requirement under subdivision 2 and make annual recommendations by June 15 to their school boards. 

(b) A district must include the report required under paragraph (a) as part of the comprehensive achievement and civic readiness report under section 120B.11, subdivision 5. 

Subd. 4.Planning and staff development. 
A school district that qualifies to participate in the alternative teacher professional pay system transitional planning year under subdivision 1a may use up to two percent of basic revenue that would otherwise be reserved under section 122A.61 for complying with the planning and staff development activities under this section. 

No active language found for: 122A.414.4a 

No active language found for: 122A.414.5 

No active language found for: 122A.414.5a 

No active language found for: 122A.414.6 

No active language found for: 122A.414.7 

No active language found for: 122A.414.8 

No active language found for: 122A.414.9 

No active language found for: 122A.414.10 

No active language found for: 122A.414.11 

No active language found for: 122A.414.12 

No active language found for: 122A.414.13 

No active language found for: 122A.414.14a 

No active language found for: 122A.414.15 

No active language found for: 122A.414.16 

122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER PAY.
Notwithstanding section 179A.20 or other law to the contrary, a school board and the exclusive representative of the teachers may agree to reopen a collective bargaining agreement for the purpose of entering into an alternative teacher professional pay system agreement under sections 122A.414 and 122A.415. Negotiations for a contract reopened under this section must be limited to issues related to the alternative teacher professional pay system. 

122A.415 ALTERNATIVE COMPENSATION REVENUE.Subdivision 1.Revenue amount. 
(a) A school district, intermediate school district, cooperative unit as defined in section 123A.24, subdivision 2, school site, or charter school that meets the conditions of section 122A.414 and submits an application approved by the commissioner is eligible for alternative teacher compensation revenue. 

(b) For school district and intermediate school district applications, the commissioner must consider only those applications to participate that are submitted jointly by a district and the exclusive representative of the teachers. The application must contain an alternative teacher professional pay system agreement that: 

(1) implements an alternative teacher professional pay system consistent with section 122A.414; and 

(2) is negotiated and adopted according to the Public Employment Labor Relations Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a district may enter into a contract for a term of two or four years. 

Alternative teacher compensation revenue for a qualifying school district or site in which the school board and the exclusive representative of the teachers agree to place teachers in the district or at the site on the alternative teacher professional pay system equals $260 times the number of pupils enrolled at the district or site on October 1 of the previous fiscal year. Alternative teacher compensation revenue for a qualifying intermediate school district or cooperative must be calculated under subdivision 4, paragraph (b). 

(c) For a newly combined or consolidated district, the revenue shall be computed using the sum of pupils enrolled on October 1 of the previous year in the districts entering into the combination or consolidation. The commissioner may adjust the revenue computed for a site using prior year data to reflect changes attributable to school closings, school openings, or grade level reconfigurations between the prior year and the current year. 

(d) The revenue is available only to school districts, intermediate school districts, cooperatives, school sites, and charter schools that fully implement an alternative teacher professional pay system by October 1 of the current school year. 

Subd. 3.Revenue timing. 
(a) Districts, intermediate school districts, cooperatives, school sites, or charter schools with approved applications must receive alternative compensation revenue for each school year that the district, intermediate school district, cooperative, school site, or charter school implements an alternative teacher professional pay system under this subdivision and section 122A.414. A qualifying district, intermediate school district, cooperative, school site, or charter school that received alternative teacher compensation aid for the previous fiscal year must receive at least an amount of alternative teacher compensation revenue equal to the lesser of the amount it received for the previous fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if the district, intermediate school district, cooperative, school site, or charter school submits a timely application and the commissioner determines that the district, intermediate school district, cooperative, school site, or charter school continues to implement an alternative teacher professional pay system, consistent with its application under this section. 

(b) The commissioner shall approve applications that comply with subdivision 1, and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter school or cooperative, in the order in which they are received, select applicants that qualify for this program, notify school districts, intermediate school districts, cooperatives, school sites, and charter schools about the program, develop and disseminate application materials, and carry out other activities needed to implement this section. 

Subd. 4.Basic alternative teacher compensation aid. 
(a) The basic alternative teacher compensation aid for a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under subdivision 1. The basic alternative teacher compensation aid for a charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, equals $260 times the number of pupils enrolled in the school on October 1 of the previous year, or on October 1 of the current year for a charter school in the first year of operation, times the ratio of the sum of the alternative teacher compensation aid and alternative teacher compensation levy for all participating school districts to the maximum alternative teacher compensation revenue for those districts under subdivision 1. 

(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative teacher compensation aid entitlement must not exceed $88,118,000 for fiscal year 2023; $88,461,000 for fiscal year 2024; $88,961,000 for fiscal year 2025; and $89,486,000 for fiscal year 2026 and later. The commissioner must limit the amount of alternative teacher compensation aid approved under this section so as not to exceed these limits by not approving new participants or by prorating the aid among participating districts, intermediate school districts, school sites, and charter schools. The commissioner may also reallocate a portion of the allowable aid for the biennium from the second year to the first year to meet the needs of approved participants. 

(c) Basic alternative teacher compensation aid for an intermediate district or other cooperative unit equals $3,000 times the number of licensed teachers employed by the intermediate district or cooperative unit on October 1 of the previous school year. 

Subd. 5.Alternative teacher compensation levy. 
The alternative teacher compensation levy for a district receiving basic alternative teacher compensation aid equals the product of (1) the difference between the district's alternative teacher compensation revenue and the district's basic alternative teacher compensation aid, times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per adjusted pupil unit to $6,100. 

Subd. 6.Alternative teacher compensation equalization aid. 
(a) A district's alternative teacher compensation equalization aid equals the district's alternative teacher compensation revenue minus the district's basic alternative teacher compensation aid minus the district's alternative teacher compensation levy. If a district does not levy the entire amount permitted, the alternative teacher compensation equalization aid must be reduced in proportion to the actual amount levied. 

(b) A district's alternative teacher compensation aid equals the sum of the district's basic alternative teacher compensation aid and the district's alternative teacher compensation equalization aid. 

Subd. 7.Revenue reserved. 
Revenue received under this section must be reserved and used only for the programs authorized under section 122A.414. 

122A.4155 ALTERNATIVE COMPENSATION RURAL DISTRICT APPLICATION ASSISTANCE.Subdivision 1.Eligibility. 
School districts located in greater Minnesota that submit a letter of intent and begin the transitional planning year, under section 122A.414, subdivision 1a, are eligible for alternative compensation application assistance. For the purposes of this section, an eligible school district is any school district located in the rural equity region under section 126C.10, subdivision 28. 

Subd. 2.Multidistrict technical assistance. 
The department shall provide technical assistance in the form of, but not limited to, networking, training, and professional development to a rural district or groups of rural districts in developing applications for the alternative compensation program. 

Subd. 3.Model plans. 
The department shall develop and disseminate alternative compensation model plans based on the unique needs and characteristics of rural districts. 

Subd. 4.Multidistrict consortia. 
The department may promote the development of multidistrict consortia to optimize opportunities for rural districts to participate in and implement alternative compensation programs. A multidistrict consortium shall develop and implement a collaborative alternative compensation plan that includes the program components outlined in section 122A.414, subdivision 2. A multidistrict consortium shall provide opportunities to share best practices, professional development training and expertise, training of teacher observers, or the purchase of programmatic resources. 

122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT INTEGRATION COLLABORATIVES.
Notwithstanding sections 122A.414, 122A.415, and 126C.10, multidistrict integration collaboratives and the Perpich Center for Arts Education are eligible to receive alternative teacher compensation revenue as if they were intermediate school districts. To qualify for alternative teacher compensation revenue, a multidistrict integration collaborative or the Perpich Center for Arts Education must meet all of the requirements of sections 122A.414 and 122A.415 that apply to intermediate school districts, must report its enrollment as of October 1 of each year to the department, and must annually report its expenditures for the alternative teacher professional pay system consistent with the uniform financial accounting and reporting standards to the department by November 30 of each year. 

122A.417 ALTERNATIVE TEACHER COMPENSATION REVENUE FOR ST. CROIX RIVER EDUCATION DISTRICT.
Notwithstanding section 122A.415, subdivision 4, paragraph (c), the St. Croix River Education District, No. 6009-61, is eligible to receive alternative teacher compensation revenue based on its staffing as of October 1 of the previous fiscal year as reported to the department in a manner determined by the commissioner. To qualify for alternative teacher compensation revenue, the St. Croix River Education District must meet all the requirements of sections 122A.414 and 122A.415 that apply to cooperative units, must report its staffing as of October 1 of each year to the department in a manner determined by the commissioner, and must annually report to the department by November 30 its expenditures for the alternative teacher professional pay system consistent with the uniform financial accounting and reporting standards. 

123B.40 DECLARATION OF POLICY.
It is the intent of the legislature to provide for distribution of educational aids such as textbooks, standardized tests and pupil support services so that every school pupil in the state will share equitably in education benefits and therefore further assure all Minnesota pupils and their parents freedom of choice in education. 

123B.41 DEFINITIONS.Subd. 2.Textbook. 
(a) "Textbook" means any book or book substitute, including electronic books as well as other printed materials delivered electronically, which a pupil uses as a text or text substitute in a particular class or program in the school regularly attended and a copy of which is expected to be available for the individual use of each pupil in this class or program. Textbook includes an online book with an annual subscription cost. Textbook includes a teacher's edition, teacher's guide, or other materials that accompany a textbook that a pupil uses when the teacher's edition, teacher's guide, or other teacher materials are packaged physically or electronically with textbooks for student use. 

(b) For purposes of calculating the annual nonpublic pupil aid entitlement for textbooks, the term shall be limited to books, workbooks, or manuals, whether bound or in loose-leaf form, as well as electronic books and other printed materials delivered electronically, intended for use as a principal source of study material for a given class or a group of students. 

(c) For purposes of sections 123B.40 to 123B.48, the terms "textbook" and "software or other educational technology" include only such secular, neutral, and nonideological materials as are available, used by, or of benefit to Minnesota public school pupils. 

Subd. 3.Standardized tests. 
"Standardized tests" means standardized tests and scoring services which are provided by commercial publishing organizations or the state and which are in use in the public schools of Minnesota to measure the progress of pupils in secular subjects. 

Subd. 4.Pupil support services. 
"Pupil support services" means guidance and counseling services and health services. 

Subd. 5.Individualized instructional or cooperative learning materials. 
(a) "Individualized instructional or cooperative learning materials" means educational materials which: 

(1) are designed primarily for individual pupil use or use by pupils in a cooperative learning group in a particular class or program in the school the pupil regularly attends, including teacher materials that accompany materials that a pupil uses; 

(2) are secular, neutral, nonideological and not capable of diversion for religious use; and 

(3) are available, used by, or of benefit to Minnesota public school pupils. 

(b) Subject to the requirements in paragraph (a), "individualized instructional or cooperative learning materials" include, but are not limited to, the following if they do not fall within the definition of "textbook" in subdivision 2: published materials; periodicals; documents; pamphlets; photographs; reproductions; pictorial or graphic works; prerecorded video programs; prerecorded tapes, cassettes and other sound recordings; manipulative materials; desk charts; games; study prints and pictures; desk maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia systems; prepared instructional computer software programs; choral and band sheet music; electronic books and other printed materials delivered electronically; and CD-Rom. 

(c) "Individualized instructional or cooperative learning materials" do not include instructional equipment, instructional hardware, or ordinary daily consumable classroom supplies. 

Subd. 5a.Software or other educational technology. 
For purposes of sections 123B.42 and 123B.43, "software or other educational technology" includes software, programs, applications, hardware, and any other electronic educational technology. Software or other educational technology includes course registration fees for advanced placement courses delivered online. 

Subd. 6.Pupils. 
"Pupils" means elementary and secondary pupils. 

Subd. 7.Elementary pupils. 
"Elementary pupils" means pupils in grades kindergarten through 6; provided, each kindergarten pupil in a half-day program shall be counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42, and 123B.44 to 123B.48. 

Subd. 8.Secondary pupils. 
"Secondary pupils" means pupils in grades 7 through 12. 

Subd. 12.Intermediary service area. 
"Intermediary service area" means a school administrative unit approved by the commissioner, other than a single school district, including but not limited to the following: 

(a) a service cooperative; 

(b) a cooperative of two or more school districts; 

(c) learning centers; or 

(d) an association of schools or school districts. 

Subd. 14.Guidance and counseling services. 
"Guidance and counseling services" means all activities of a licensed counselor in counseling pupils and parents, providing counseling on learning problems, evaluating the abilities of pupils, assisting pupils in personal and social development and providing referral assistance. 

Subd. 15.Health services. 
"Health services" means physician, dental, nursing or optometric services and health supplies brought to the site by the health professional for pupil usage in the field of physical or mental health; provided the term does not include direct educational instruction, services which are required pursuant to sections 125A.03 to 125A.24, and 125A.65, and 125A.26 to 125A.48, or services which are eligible to receive special education aid pursuant to section 125A.75. 

123B.42 TEXTBOOKS; INDIVIDUAL INSTRUCTION OR COOPERATIVE LEARNING MATERIAL; STANDARD TESTS.Subdivision 1.Providing education materials and tests. 
The commissioner of education shall promulgate rules under the provisions of chapter 14 requiring that in each school year, based upon formal requests by or on behalf of nonpublic school pupils in a nonpublic school, the local districts or intermediary service areas must purchase or otherwise acquire textbooks, individualized instructional or cooperative learning materials, software or other educational technology, and standardized tests and loan or provide them for use by children enrolled in that nonpublic school. These textbooks, individualized instructional or cooperative learning materials, software or other educational technology, and standardized tests must be loaned or provided free to the children for the school year for which requested. The loan or provision of the textbooks, individualized instructional or cooperative learning materials, and standardized tests shall be subject to rules prescribed by the commissioner of education. 

Subd. 1a.Curriculum; electronic components. 
A school district that provides curriculum to resident students that has both physical and electronic components must make the electronic component accessible to a resident student in a home school in compliance with sections 120A.22 and 120A.24 at the request of the student or the student's parent or guardian, provided that the district does not incur more than an incidental cost as a result of providing access electronically. 

Subd. 2.Title to education materials and tests. 
The title to textbooks, individualized instructional or cooperative learning materials, software or other educational technology, and standardized testing materials must remain in the servicing school district or intermediary service area, and possession or custody may be granted or charged to administrators of the nonpublic school attended by the nonpublic school pupil or pupils to whom the textbooks, individualized instructional or cooperative learning materials, or standardized tests are loaned or provided. 

Subd. 3.Cost; limitation. 
(a) The cost per pupil of the textbooks, individualized instructional or cooperative learning materials, software or other educational technology, and standardized tests provided for in this section for each school year must not exceed the statewide average expenditure per pupil, adjusted pursuant to paragraph (b), by the Minnesota public elementary and secondary schools for textbooks, individualized instructional materials and standardized tests as computed and established by the department by February 1 of the preceding school year from the most recent public school year data then available. 

(b) The cost computed in paragraph (a) shall be increased by an inflation adjustment equal to the percent of increase in the formula allowance, pursuant to section 126C.10, subdivision 2, from the second preceding school year to the current school year. 

(c) The commissioner shall allot to the districts or intermediary service areas the total cost for each school year of providing or loaning the textbooks, individualized instructional or cooperative learning materials, software or other educational technology, and standardized tests for the pupils in each nonpublic school. The allotment shall not exceed the product of the statewide average expenditure per pupil, according to paragraph (a), adjusted pursuant to paragraph (b), multiplied by the number of nonpublic school pupils who make requests pursuant to this section and who are enrolled as of September 15 of the current school year. 

123B.43 USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.
(a) The commissioner shall assure that textbooks and individualized instructional materials loaned to nonpublic school pupils are secular, neutral, nonideological and that they are incapable of diversion for religious use. 

(b) Textbooks, individualized instructional materials, software or other educational technology must not be used in religious courses, devotional exercises, religious training or any other religious activity. 

(c) Textbooks and individualized instructional materials must be loaned only to individual pupils upon the request of a parent or guardian or the pupil on a form designated for this use by the commissioner. The request forms shall provide for verification by the parent or guardian or pupil that the requested textbooks and individualized instructional materials are for the use of the individual pupil in connection with a program of instruction in the pupil's elementary or secondary school. 

(d) The servicing school district or the intermediary service area must take adequate measures to ensure an accurate and periodic inventory of all textbooks, individualized instructional materials, software or other educational technology loaned to elementary and secondary school pupils attending nonpublic schools. The commissioner of education shall promulgate rules under the provisions of chapter 14 to terminate the eligibility of any nonpublic school pupil if the commissioner determines, after notice and opportunity for hearing, that the textbooks, individualized instructional materials, or software or other educational technology, have been used in a manner contrary to the provisions of section 123B.41, subdivision 5, 123B.42, or this section or any rules promulgated by the commissioner of education. 

(e) Nothing contained in section 123B.41, subdivision 5, 123B.42, or this section shall be construed to authorize the making of any payments to a nonpublic school or its faculty, staff or administrators for religious worship or instruction or for any other purpose. 

123B.44 PROVISION OF PUPIL SUPPORT SERVICES.Subdivision 1.Provided services. 
The commissioner of education shall promulgate rules under the provisions of chapter 14 requiring each district or other intermediary service area: (a) to provide each year upon formal request by a specific date by or on behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district or area, the same specific health services as are provided for public school pupils by the district where the nonpublic school is located; and (b) to provide each year upon formal request by a specific date by or on behalf of a nonpublic school secondary pupil enrolled in a nonpublic school located in that district or area, the same specific guidance and counseling services as are provided for public school secondary pupils by the district where the nonpublic school is located. The district where the nonpublic school is located must provide the necessary transportation within the district boundaries between the nonpublic school and a public school or neutral site for nonpublic school pupils who are provided pupil support services under this section if the district elects to provide pupil support services at a site other than the nonpublic school. Each request for pupil support services must set forth the guidance and counseling or health services requested by or on behalf of all eligible nonpublic school pupils enrolled in a given nonpublic school. No district or intermediary service area must not expend an amount for these pupil support services which exceeds the amount allotted to it under this section. 

Subd. 2.Location of services. 
Health and guidance and counseling services may be provided to nonpublic school pupils under this section at a public school, a neutral site, the nonpublic school or any other suitable location. District or intermediary service area personnel and representatives of the nonpublic school pupils receiving pupil support services must hold an annual consultation regarding the type of services, provider of services, and the location of the provision of these services. The district board or intermediary service area governing board must make the final decision on the location of the provision of these services. 

Subd. 3.Guidance and counseling; exclusions. 
Guidance and counseling services provided to nonpublic school pupils pursuant to this section shall not include the planning or selection of particular courses or classroom activities of the nonpublic school. 

Subd. 4.Health services; allotment. 
Each school year the commissioner shall allot to the school districts or other intermediary service areas for the provision of health services pursuant to this section the actual cost of the services provided for the pupils in each respective nonpublic school for that school year. The allotment must not exceed the average expenditure per public school pupil for these services by those Minnesota public elementary and secondary schools which provide health services to public school pupils, multiplied by the number of pupils in that particular nonpublic school who request these health services and who are enrolled as of September 15 of the current school year. 

Subd. 5.Guidance and counseling services; allotment. 
Each school year the commissioner shall allot to the school districts or intermediary service areas for the provision of guidance and counseling services pursuant to this section the actual cost of the services provided for the pupils in each respective nonpublic school for that school year. The allotment for guidance and counseling services for the secondary pupils in each nonpublic school must not exceed the average expenditure per public school secondary pupil for these services by those Minnesota public schools which provide these services to their secondary pupils, multiplied by the number of secondary pupils in that particular nonpublic school who request these services and who are enrolled as of September 15 of the current school year. 

Subd. 6.Computation of maximum allotments. 
For purposes of computing maximum allotments for each school year pursuant to this section, the average public school expenditure per pupil for health services and the average public school expenditure per secondary pupil for guidance and counseling services shall be computed and established by the department by February 1 of the preceding school year from the most recent public school year data then available. 

123B.45 PAYMENTS FOR CONTRACTUAL OBLIGATIONS.
The commissioner shall make such payments to school districts or intermediary service areas pursuant to sections 123B.40 to 123B.42, and 123B.44 to 123B.48 as are needed to meet contractual obligations incurred for the provision of benefits to nonpublic school students pursuant to section 123B.42, 123B.44, or 123B.445. 

123B.46 ADMINISTRATIVE COSTS.
Each year, a district or intermediary service area may claim and receive from the department an additional sum for the administration of sections 123B.42, 123B.44, and 123B.445, equal to five percent of the district's or area's allocation for that year pursuant to those sections. 

123B.47 NOTICE TO DISTRICTS; PRORATION.
If the appropriation for nonpublic educational aid under sections 123B.40 to 123B.48 is not sufficient to meet the required payments in any fiscal year, the department must notify the school districts at the earliest possible date of the need to prorate the appropriation among the districts. 

123B.48 LIMIT ON DISTRICT OBLIGATIONS.
If the amount appropriated for purposes of sections 123B.40 to 123B.42, and 123B.44 to 123B.48, for any year is not sufficient to make the payments required pursuant to sections 123B.40 to 123B.42, and 123B.44 to 123B.48, for that year, then no school district or intermediary service area is required to expend an amount pursuant to sections 123B.40 to 123B.42, and 123B.44 to 123B.48, for that year which exceeds the amount of the payments it receives pursuant to sections 123B.40 to 123B.42, and 123B.44 to 123B.48, for that year. 

123B.86 EQUAL TREATMENT.Subd. 2.Nonpublic school students. 
(a) The board of any local district must provide school bus transportation to the district boundary for school children residing in the district at least the same distance from a nonpublic school actually attended in another district as public school pupils are transported in the transporting district. Such transportation must be provided whether or not there is another nonpublic school within the transporting district, if the transportation is to schools maintaining grades or departments not maintained in the district or if the attendance of such children at school can more safely, economically, or conveniently be provided for by such means. 

(b) The school board of any local district may provide school bus transportation to a nonpublic school in another district for school children residing in the district and attending that school, whether or not there is another nonpublic school within the transporting district, if the transportation is to schools maintaining grades or departments not maintained in the district or if the attendance of such children at school can more safely, economically, or conveniently be provided for by such means. If the board transports children to a nonpublic school located in another district, the nonpublic school must pay the cost of such transportation provided outside the district boundaries. 

123B.92 TRANSPORTATION AID ENTITLEMENT.Subd. 9.Nonpublic pupil transportation aid. 
(a) A district's nonpublic pupil transportation aid for the 1996-1997 and later school years for transportation services for nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does not limit the obligation to transport pupils under sections 123B.84 to 123B.87. 

(b) For regular and excess transportation according to subdivision 1, paragraph (b), clauses (1) and (2), an amount equal to the product of: 

(1) the district's actual expenditure per pupil transported in the regular and excess transportation categories during the second preceding school year; times 

(2) the number of nonpublic school pupils residing in the district who receive regular or excess transportation service or reimbursement for the current school year; times 

(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for the current school year to the formula allowance pursuant to section 126C.10, subdivision 2, for the second preceding school year. 

(c) For nonpublic nonregular transportation according to subdivision 1, paragraph (b), clause (5), an amount equal to the product of: 

(1) the district's actual expenditure for nonpublic nonregular transportation during the second preceding school year; times 

(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for the current school year to the formula allowance pursuant to section 126C.10, subdivision 2, for the second preceding school year. 

(d) Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in section 126C.10, subdivision 2, the commissioner shall use the amount of the formula allowance for the current year minus $414 in determining the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal years 2015 and 2016. 

124D.98 LITERACY INCENTIVE AID.Subdivision 1.Literacy incentive aid. 
 A district's literacy incentive aid equals the sum of the proficiency aid under subdivision 2, and the growth aid under subdivision 3. 

Subd. 2.Proficiency aid. 
 The proficiency aid for each school in a district that has submitted to the commissioner its local literacy plan under section 120B.12, subdivision 4a, is equal to the product of the school's proficiency allowance times the number of third grade pupils at the school on October 1 of the previous fiscal year. A school's proficiency allowance is equal to the percentage of students in each building that meet or exceed proficiency on the third grade reading Minnesota Comprehensive Assessment, averaged across the previous three test administrations, times $530. 

Subd. 3.Growth aid. 
 The growth aid for each school in a district that has submitted to the commissioner its local literacy plan under section 120B.12, subdivision 4a, is equal to the product of the school's growth allowance times the number of fourth grade pupils enrolled at the school on October 1 of the previous fiscal year. A school's growth allowance is equal to the percentage of students at that school making medium or high growth, under subdivision 4, on the fourth grade reading Minnesota Comprehensive Assessment, averaged across the previous three test administrations, times $530. 

Subd. 4.Medium and high growth. 
(a) The definitions in this subdivision apply to this section. 

(b) "Medium growth" is an assessment score within one-half standard deviation above or below the average year-two assessment scores for students with similar year-one assessment scores. 

(c) "High growth" is an assessment score one-half standard deviation or more above the average year-two assessment scores for students with similar year-one assessment scores.