SF1612 (Legislative Session 94 (2025-2026))

School district funding increase

Related bill: HF1028

AI Generated Summary

This bill, Minnesota Senate File No. 1612, focuses on education finance and proposes various funding increases for school districts. Key components of the bill include:

  1. Increased General Education Funding – Raises the general education basic formula allowance, which determines per-student funding for public schools.
  2. Special Education Support – Increases special education cross-subsidy aid to help cover the gap between special education costs and available funding.
  3. School Unemployment Aid – Provides additional funds for the school unemployment aid account.
  4. English Learner Support – Expands cross-subsidy aid for English learners, supporting districts with high numbers of non-native English speakers.
  5. School Safety Funding – Increases safe schools revenue to enhance security and support services in schools.
  6. Extended Time Revenue Adjustment – Links extended time revenue (funding for students needing additional instructional time) to the general education basic formula allowance.
  7. Debt Service Equalization Aid – Raises equalization aid for various levies, including debt service levies, local optional revenue, and operating referendums, reducing the reliance on local property taxes.
  8. Compensatory Revenue Eligibility Update – Changes how schools qualify for compensatory revenue by using both direct certification and education benefits applications, potentially increasing funding for low-income students.
  9. Operating Referendum Renewal – Allows school boards to renew voter-approved operating referenda multiple times, providing more financial stability for school districts.

The bill also includes amendments to several Minnesota Statutes (2024) to implement these changes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [
        "Modifies fiscal year equalizing factors for fiscal years 2025 and beyond."
      ],
      "removed": [],
      "summary": "This bill amends the equalized debt service levy calculation under section 123B.53, subdivision 5.",
      "modified": [
        "Adjusts ratios for first and second tier equalized debt service levies based on school district tax capacity and pupil units."
      ]
    },
    "citation": "123B.53"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill addresses amendments to special education cross subsidy aid in section 124D.65, subdivision 5a.",
      "modified": [
        "Adjusts aid calculation components for special education funding."
      ]
    },
    "citation": "124D.65"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies special education funding formulas under section 125A.76, subdivision 2e.",
      "modified": [
        "Updates fiscal data used in calculating special education aid."
      ]
    },
    "citation": "125A.76"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends general education revenue calculations in section 126C.10, various subdivisions.",
      "modified": [
        "Modifies basic formula allowances and extended time revenue calculations."
      ]
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill changes operating referendum calculations in section 126C.17, various subdivisions.",
      "modified": [
        "Adjusts conditions and rates for operating referendums."
      ]
    },
    "citation": "126C.17"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies local optional revenue calculations under section 126C.44, subdivision 1.",
      "modified": [
        "Updates revenue eligibility based on new funding formula."
      ]
    },
    "citation": "126C.44"
  }
]