This bill aims to modify how schools in Minnesota calculate their eligibility for compensatory revenue, which is funding provided to schools based in part on the number of students receiving free or reduced-price meals. Currently, this eligibility is determined through a process called direct certification and through applications for educational benefits. The bill proposes that these eligibility checks be conducted annually by October 1st, with eligibility based on status by December 15th of the same school year.

The bill also intends to change the way compensatory revenue can be distributed within school districts, possibly allowing for more flexibility under specific conditions. Additionally, the establishment of a Compensatory Revenue Task Force is proposed to oversee and report on these processes.

Lastly, the bill includes provisions for appropriating money necessary to support these changes and mandates the adoption of reporting guidelines to ensure the accuracy of data concerning eligible students.