SF 3186

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/09/2025 01:40 p.m.

A bill for an act
relating to education finance; modifying the literacy incentive aid program;
establishing new eligible uses for literacy aid; appropriating money for literacy
aid; amending Minnesota Statutes 2024, section 124D.98.

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

Section 1.

Minnesota Statutes 2024, section 124D.98, is amended to read:

124D.98 LITERACY deleted text begin INCENTIVE deleted text end AID.

Subdivision 1.

Literacy deleted text begin incentive deleted text end aid.

A district's literacy deleted text begin incentive deleted text end aid equals the sum
of the deleted text begin proficiency aid under subdivision 2, and the growth aid under subdivision 3 deleted text end new text begin basic
literacy aid under subdivision 6, English learner literacy aid under subdivision 7, and targeted
literacy aid under subdivision 8 new text end .

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "English learner concentration factor" means the ratio of: (1) the district's adjusted
average daily membership of English learners under section 124D.59, subdivision 2, for
the previous fiscal year; to (2) the district's total adjusted average daily membership for the
previous fiscal year.
new text end

new text begin (c) "Poverty concentration factor" means the ratio of: (1) the sum of the number of pupils
enrolled in the district eligible to receive free meals, plus one-half of the pupils eligible to
receive reduced-priced meals on October 1 of the previous fiscal year; to (2) the number of
pupils enrolled in the district on October 1 of the previous fiscal year.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Proficiency aid. deleted text end

deleted text begin 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.
deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Growth aid. deleted text end

deleted text begin 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.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Medium and high growth. deleted text end

deleted text begin (a) The definitions in this subdivision apply to this
section.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

Subd. 5.

Literacy deleted text begin incentive deleted text end aid uses.

A school district must use its literacy deleted text begin incentive deleted text end
aid to deleted text begin support implementation of evidence-based reading instruction deleted text end new text begin meet the requirements
and goals adopted in the district's local literacy plan under section 120B.12, subdivision 4a new text end .
deleted text begin The following are eligible uses of literacy incentive aid:
deleted text end

deleted text begin (1) training for kindergarten through grade 3 teachers, early childhood educators, special
education teachers, reading intervention teachers working with students in kindergarten
through grade 12, curriculum directors, and instructional support staff that provide reading
instruction, on using evidence-based screening and progress monitoring tools;
deleted text end

deleted text begin (2) evidence-based training using a training program approved by the Department of
Education under the Read Act;
deleted text end

deleted text begin (3) employing or contracting with a literacy lead, as defined in section 120B.119;
deleted text end

deleted text begin (4) employing an intervention specialist;
deleted text end

deleted text begin (5) approved screeners, materials, training, and ongoing coaching to ensure reading
interventions under section 125A.56, subdivision 1, are evidence-based;
deleted text end

deleted text begin (6) costs of substitute teachers to allow teachers to complete required training during
the teachers' contract day; and
deleted text end

deleted text begin (7) stipends for teachers completing training required under section 120B.12.
deleted text end

new text begin Subd. 6. new text end

new text begin Basic literacy aid. new text end

new text begin (a) A district's basic literacy aid equals the product of: (1)
the basic literacy aid allowance; and (2) the district's adjusted average daily membership
for kindergarten through grade four for the previous fiscal year.
new text end

new text begin (b) The basic literacy aid allowance equals $....... for fiscal year 2026 and later.
new text end

new text begin Subd. 7. new text end

new text begin English learner literacy aid. new text end

new text begin (a) A district's English learner literacy aid equals
the product of: (1) the English learner literacy aid allowance; (2) the district's English learner
concentration factor; and (3) the district's adjusted average daily membership for kindergarten
through grade four for the previous fiscal year.
new text end

new text begin (b) The English learner literacy aid allowance equals $....... for fiscal year 2026 and later.
new text end

new text begin Subd. 8. new text end

new text begin Targeted literacy aid. new text end

new text begin (a) A district's targeted literacy aid equals the product
of: (1) the statewide targeted literacy aid allowance; (2) the district's poverty concentration
factor; and (3) the district's adjusted average daily membership for kindergarten through
grade four for the previous fiscal year.
new text end

new text begin (b) The statewide targeted literacy aid allowance equals $....... for fiscal year 2026 and
later.
new text end

new text begin Subd. 9. new text end

new text begin Free and reduced-price meals. new text end

new text begin The commissioner must determine the number
of children eligible to receive either a free or reduced-price meal on October 1 each year
by means of direct certification or through the application for educational benefits. Children
enrolled in a district on October 1 and determined to be eligible to receive free or
reduced-price meals by December 15 of that school year must be counted as eligible on
October 1 for purposes of aid under this section. The commissioner may use federal
definitions for these purposes and may adjust these definitions as appropriate. 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 end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin APPROPRIATIONS.
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 for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Literacy aid. new text end

new text begin (a) For literacy aid under Minnesota Statutes, section 124D.98:
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

new text begin (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026.
new text end

new text begin (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027.
new text end