SF2325

Purpose of the Bill

The aim of this bill is to address disparities in education funding across different school districts in Minnesota. It seeks to create a more equitable distribution of general education revenue by establishing a new form of financial support called "general education disparity aid."

Main Provisions

• General Education Disparity Aid Allowance:

  • This is calculated as 0.37 times the greater value between zero and the difference in adjusted general education revenue per pupil between a district and a benchmark district at the 20th percentile.
  • The benchmark is set by identifying the adjusted general education revenue of the district at or immediately below the 20th percentile of all districts.

• Funding Calculation for 2026 and Beyond:

  • Going forward from fiscal year 2026, a district's general education disparity aid will be computed by multiplying the district’s general education disparity aid allowance by its number of adjusted pupil units.

• Definitions and Inclusions:

  • "Adjusted general education revenue" includes the district’s general education revenue and their referendum revenue as outlined in specific sections of the Minnesota Statutes.

Significant Changes to Existing Law

This bill introduces a new funding category within the Minnesota education finance structure. It specifically targets districts that fall below the 20th percentile in terms of adjusted general education revenue, thereby creating a financial mechanism directly addressing funding inequities across school districts.

Relevant Terms

general education, education finance, disparity aid, pupil units, adjusted general education revenue, school district funding, education equity, referendum revenue, Minnesota Statutes 126C