HF4114

Purpose

The bill seeks to change how the state handles a planned reduction in special education aid. It ties forecasting and budget decisions to a specific savings target and links enacted provisions to recommendations from the Blue Ribbon Commission on Special Education. It also requires adjustments to the cross-subsidy help for special education if expected savings aren’t realized, and mandates transparency to lawmakers.

Main Provisions

• Forecasting requirement for the budget forecast
  • When the state forecast is prepared, the commissioner of management and budget must assume a $250,000,000 reduction in special education aid for the biennium starting July 1, 2027, and for each following biennium until a budget for the Department of Education for the July 1, 2027, biennium is enacted.
• Identification of Blue Ribbon Commission recommendations
  • After a Department of Education budget is enacted for the July 1, 2027, biennium, the legislature must identify enacted provisions that were recommended by or based on the Blue Ribbon Commission on Special Education.
• Adjustment of the cross-subsidy if savings are less than the target
  • If net savings from the Commission-based provisions are less than $250,000,000 for the 2027-29 biennium (and future bienniums), the commissioner of education must reduce the special education cross-subsidy aid factor (as defined in statute) as needed to reduce total biennial appropriations for special education aid by the difference between the savings and $250,000,000.
• Notification requirement
  • The commissioner of education must notify the chairs and ranking minority members of the legislative committees with jurisdiction over K-12 education of any reduction in the cross-subsidy aid factor.

Significant Changes to Existing Law

• This bill amends Laws 2025 First Special Session chapter 10 article 7 section 8 to create a formal, forecast-driven mechanism that assumes a $250,000,000 reduction in special education aid for the 2027-29 biennium and beyond, and to require cross-subsidy adjustments if actual savings fall short of that amount.
• It requires explicit linkage between enacted provisions and recommendations from the Blue Ribbon Commission on Special Education.
• It introduces a formal process for notifying legislators about any changes to the cross-subsidy aid factor that affects special education funding.

Timing and Scope

• Applies to the biennium beginning July 1, 2027, and to each subsequent biennium until new budget provisions are enacted.
• Involves the Department of Education, the commissioner of management and budget, and the cross-subsidy mechanism under Minnesota statute.

How this bill seeks to accomplish its goals

• Ensure a consistent, forecast-based approach to potential reductions in special education funding.
• Tie budget decisions to recognized expert recommendations (Blue Ribbon Commission).
• Provide a built-in fallback: if savings aren’t realized, adjust funding mechanisms to still meet the target reduction.
• Maintain legislative oversight through required notifications to key committees.

Relevant Terms - special education aid - contingent reduction - Blue Ribbon Commission on Special Education - cross subsidy aid factor - Minnesota Statutes §125A.76, subd. 2e, par. b - Minnesota Statutes §16A.103 - biennium - Department of Education - commissioner of management and budget - notification to chairs and ranking minority members - K-12 education