SF 1086

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/11/2025 10:04 a.m.

A bill for an act
relating to education finance; increasing the general education basic formula
allowance by an additional three percent per year; appropriating money; amending
Minnesota Statutes 2024, section 126C.10, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

(a) The basic revenue for each district equals the formula
allowance times the adjusted pupil units for the school year. deleted text begin The formula allowance for
fiscal year 2023 is $6,863. deleted text end The formula allowance for fiscal year 2024 is $7,138. The formula
allowance for fiscal year 2025 is $7,281.

(b) The formula allowance for fiscal year 2026 and later must be rounded to the nearest
whole dollar and equals the formula allowance for the previous fiscal year times the greater
of:

(1) deleted text begin 1.02 deleted text end new text begin 1.05 new text end ; or

(2) one plus the rate of change in inflation calculated in paragraph (c) but not to exceed
deleted text begin 1.03 deleted text end new text begin 1.06 new text end .

(c) In January of the calendar year in which the formula allowance begins, the
commissioner of education must calculate the rate of change in inflation equal to the change
in the Consumer Price Index for all urban consumers as published by the Bureau of Labor
Statistics of the Department of Labor for the average of the fourth calendar quarter of the
second prior fiscal year compared to the average of the fourth calendar quarter of the
immediately prior fiscal year.

(d) The commissioner must publish the formula allowance by the end of February of
each year.

(e) It is the policy and purpose of the legislature to fund its public schools consistent
with its constitutional obligations. To this purpose, the legislature may enact additional
increases in the general education basic formula allowance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2026 and later.
new text end

Sec. 2. new text begin APPROPRIATION; GENERAL EDUCATION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2026 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2027 new text end