HF586

The bill proposes the creation of a new program called the "Funding for Success Incentive Aid Program" for schools in Minnesota. This program aims to reward schools financially based on their performance in two areas:

1. Graduation Rate: Schools will receive a multiplier for each percentage point above 90% of their students who graduate, with points calculated from the graduation rates over the two preceding academic years.

2. Recent Graduate Enrollment Success Rate: Schools will also receive a multiplier based on the percentage of their recent graduates (from the last two years) who enroll in state colleges or universities without needing remedial classes.

The aid a school receives will be calculated by adding the multipliers from these two metrics, multiplying by the school's total enrollment, and then relating this product to the total amount of incentive aid available.

Only the schools with a graduation rate or recent graduate enrollment success rate above the 90% threshold will qualify for this incentive aid.

The bill also includes provisions for appropriating the necessary funds from the general fund to the Department of Education to support this program starting in fiscal year 2026.

In short, this bill seeks to incentivize schools to improve graduation rates and ensure their graduates are well-prepared for higher education by offering financial rewards based on performance in these areas.