Office of the Revisor of Statutes
SF 2002
Introduction - 94th Legislature (2025 - 2026)
Posted on 07/09/2025 01:27 p.m.
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Introduction
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Posted on 02/26/2025 |
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A bill for an act
relating to education finance; calculating a school's compensatory revenue eligibility
on the basis of both direct certification and the application of education benefits;
modifying the percent of compensatory revenue spent at each site under certain
conditions; establishing a Compensatory Revenue Task Force; requiring reports;
appropriating money; amending Minnesota Statutes 2024, sections 126C.10,
subdivision 3b; 126C.15, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 126C.10, subdivision 3b, is amended to read:
Subd. 3b.
Free and reduced-price meals.
Beginning October 1, 2024, the commissioner
shall determine the number of children eligible by means of direct certificationnew text begin and through
the application of educational benefitsnew text end to receive either a free or reduced-price meal on
October 1 each year. Children enrolled in a building on October 1 and determined to be
eligible by means of direct certificationnew text begin or through the application of educational benefitsnew text end
to receive free or reduced-price meals by December 15 of that school year shall be counted
as eligible on October 1 for purposes of subdivision 3. The commissioner must use federal
definitions for these purposes. The commissioner may adopt reporting guidelines to assure
accuracy of data counts and eligibility. Districts must use any guidelines adopted by the
commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aid for fiscal year 2026 and later.
new text end
Sec. 2.
Minnesota Statutes 2024, section 126C.15, subdivision 2, is amended to read:
Subd. 2.
Building allocation.
(a) A district or cooperative must allocate at least 80
percent of its compensatory revenue to each school building in the district or cooperative
where the children who have generated the revenue are served unless the school district or
cooperative has received permission under Laws 2005, First Special Session chapter 5,
article 1, section 50, to allocate compensatory revenue according to student performance
measures developed by the school board.
(b) A district or cooperative may allocate no more than 20 percent of the amount of
compensatory revenue that the district receives to school sites according to a plan adopted
by the school board. The money reallocated under this paragraph must be spent for the
purposes listed in subdivision 1, but may be spent on students in any grade, including
students attending school readiness or other prekindergarten programs.
(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means
education site as defined in section 123B.04, subdivision 1.
(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue generated
by students served at a cooperative unit shall be paid to the cooperative unit.
(e) A district or cooperative with school building openings, school building closings,
changes in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district or cooperative must report to the department any
adjustments it makes according to this paragraph and the department must use the adjusted
compensatory revenue allocations in preparing the report required under section 123B.76,
subdivision 3, paragraph (c).
new text begin
(f) For fiscal years 2026 and 2027 only, notwithstanding the percentages specified in
paragraphs (a) and (b), if the district's compensatory pupil count excludes students identified
through the application of educational benefits, a district may allocate up to 40 percent of
the amount of compensatory revenue that the district receives to school sites according to
a plan adopted by the school board, consistent with the purposes listed in subdivision 1.
new text end
Sec. 3. new text begin COMPENSATORY REVENUE TASK FORCE.
new text end
new text begin Subdivision 1. new text end
new text begin Task force established. new text end
new text begin
A task force is established to analyze the general
education compensatory revenue formula, including the purpose of the program, the revenue
levels of the program, the distribution formula for the revenue, and the uses of compensatory
revenue.
new text end
new text begin Subd. 2. new text end
new text begin Membership. new text end
new text begin
The commissioner of education must appoint the following
members to the task force by August 1, 2025:
new text end
new text begin
(1) the commissioner of education or the commissioner's designee;
new text end
new text begin
(2) the commissioner of revenue or the commissioner's designee;
new text end
new text begin
(3) the executive director of the Minnesota School Boards Association or the executive
director's designee;
new text end
new text begin
(4) the executive director of Education Minnesota or the executive director's designee;
new text end
new text begin
(5) the executive director of the Minnesota Rural Education Association or the executive
director's designee;
new text end
new text begin
(6) the executive director of the Minnesota Education Equity Partnership or the executive
director's designee, and one parent of a child eligible for free or reduced-price meals under
the federal meal standards, appointed by the executive director;
new text end
new text begin
(7) the executive director of the Association of Metropolitan School Districts or the
executive director's designee;
new text end
new text begin
(8) a representative of a school district of a city of the first class appointed by the
executive director of the Association of Metropolitan School Districts;
new text end
new text begin
(9) the executive director of the Minnesota Association of Alternative Programs or the
executive director's designee;
new text end
new text begin
(10) the executive director of Schools Advocating for Fair Funding or the executive
director's designee;
new text end
new text begin
(11) the executive director of EdAllies or the executive director's designee, and one
parent of a child eligible for free or reduced-price meals under the federal meal standards,
appointed by the executive director;
new text end
new text begin
(12) the executive director of the Minnesota Association of School Business Officials
or the executive director's designee; and
new text end
new text begin
(13) the executive director of the Minnesota Association of Charter Schools or the
executive director's designee.
new text end
new text begin Subd. 3. new text end
new text begin Duties. new text end
new text begin
The task force must:
new text end
new text begin
(1) evaluate which students currently generate compensatory revenue, examine whether
this student count aligns with students who are under-prepared to learn or otherwise not
meeting academic standards, and determine the best student population to target with
compensatory revenue;
new text end
new text begin
(2) examine and determine the best proxy and demographic variables to identify students,
sites, and districts in need of assistance to help students better meet academic standards and
prepare to learn;
new text end
new text begin
(3) examine potential input data elements for determining compensatory revenue,
including income tax data, census information, and federal school meals eligibility, whether
identified through direct certification of income from public assistance program participation
or through the application of educational benefits;
new text end
new text begin
(4) determine whether compensatory revenue should be generated at the school district
or school site level;
new text end
new text begin
(5) evaluate whether the compensatory revenue formula should contain a concentration
formula;
new text end
new text begin
(6) examine the interrelationships between the compensatory revenue program and
extended time revenue program, including summer school, and propose methods to better
integrate compensatory revenue and extended time revenue; and
new text end
new text begin
(7) evaluate the best uses of compensatory revenue.
new text end
new text begin Subd. 4. new text end
new text begin Compensation. new text end
new text begin
Minnesota Statutes, section 15.059, subdivision 3, governs
compensation of the members of the task force.
new text end
new text begin Subd. 5. new text end
new text begin Meetings and administrative support. new text end
new text begin
(a) The commissioner of education or
the commissioner's designee must convene the first meeting of the task force no later than
August 15, 2025. The task force must establish a schedule for meetings and meet as necessary
to accomplish the duties under this section. Meetings are subject to Minnesota Statutes,
chapter 13D. The task force may meet by telephone or interactive technology consistent
with Minnesota Statutes, section 13D.015.
new text end
new text begin
(b) The Department of Education must provide administrative support to assist the task
force in its work, including providing information, data, and technical support, and the
department must assist in the creation of the task force reports.
new text end
new text begin Subd. 6. new text end
new text begin Reporting. new text end
new text begin
The task force must issue a preliminary report to the legislature by
February 15, 2026, and a final report to the legislature by February 15, 2027. The reports
must be prepared and filed consistent with the requirements of Minnesota Statutes, section
3.195.
new text end
new text begin Subd. 7. new text end
new text begin Expiration. new text end
new text begin
The task force expires February 15, 2027.
new text end
Sec. 4. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
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 Additional compensatory aid. new text end
new text begin
For additional general education aid under
Minnesota Statutes, section 126C.13:
new text end
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2026 new text end |
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new text begin Subd. 3. new text end
new text begin Compensatory Revenue Task Force. new text end
new text begin
For the activities of the Compensatory
Revenue Task Force:
new text end
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