1.1 	A bill for an act
1.2 	relating to education finance; amending the transportation sparsity revenue percent;
1.3 	amending Minnesota Statutes 2024, section 126C.10, subdivision 18a.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2024, section 126C.10, subdivision 18a, is amended to read:
1.6 		Subd. 18a.Pupil transportation adjustment. (a) An independent, common, or special 
1.7 	school district's transportation sparsity revenue under subdivision 18 is increased by the 
1.8 	greater of zero or 35 70 percent of the difference between:
1.9 	(1) the lesser of the district's total cost for regular and excess pupil transportation under 
1.10 	section 123B.92, subdivision 1, paragraph (b), including depreciation, for the previous fiscal 
1.11 	year or 105 percent of the district's total cost for the second previous fiscal year; and
1.12 	(2) the sum of:
1.13 	(i) 4.66 percent of the district's basic revenue for the previous fiscal year;
1.14 	(ii) transportation sparsity revenue under subdivision 18 for the previous fiscal year;
1.15 	(iii) the district's charter school transportation adjustment for the previous fiscal year;
1.16 	(iv) the district's reimbursement for transportation provided under section 123B.92, 
1.17 	subdivision 1, paragraph (b), clause (1), item (vi); and
1.18 	(v) the district's area learning center transportation aid under section 123B.92, subdivision 
1.19 	11.
1.20 	(b) A charter school's pupil transportation adjustment equals the school district per pupil 
1.21 	unit adjustment under paragraph (a).

2.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2026 and later.