SF4529

Purpose

This bill changes how Minnesota funds student support personnel (SSP) and increases the SSP allowance over time. It also adds a new dollar amount for additional SSP aid and introduces a fund balance limit tied to SSP aid distributions.

Main Provisions

• Initial SSP aid for districts and charters

  • Independent or special school districts: initial SSP aid = greater of (SSP allowance × district’s adjusted pupil units for the current year) or 40,000.
  • Charter schools: initial SSP aid = greater of (SSP allowance × charter’s adjusted pupil units for the current year) or 20,000.
  • New fund balance rule: starting in FY2025, this initial aid must be kept in a fund balance that cannot exceed the greater of the prior year’s aid entitlement or the prior year’s fund balance.

• Cooperative SSP aid for districts in cooperative units

  • For independent or special districts that are members of an intermediate or other cooperative unit: cooperative SSP aid = greater of (cooperative SSP allowance × district’s adjusted pupil units) or 40,000.
  • If a district belongs to multiple cooperative units, revenue must be allocated among those units.
  • Each cooperative aid amount cannot exceed actual expenditures.

• SSP allowance (rate) schedule

  • Section 3.c specifies the SSP allowance (the base rate used to calculate initial aid):
  • 17.08 for FY2025
  • 30.05 for FY2026 and FY2027
  • 34.32 for FY2028 and later

• Cooperative SSP allowance

  • Section 3.d specifies the cooperative SSP allowance:
  • 0.85 for FY2025
  • 1.60 for FY2026 and later

• Appropriation for additional SSP aid

  • Sec. 2 provides an appropriation from the general fund to the commissioner of education in FY2027 for additional SSP aid.

Significant Changes to Existing Law

• Increases to the SSP allowance over time, expanding the base funding available for student support personnel.
• Introduces minimum initial aid levels (40,000 for districts, 20,000 for charters) rather than letting funds scale only with pupil counts.
• Establishes a fund balance cap tied to prior-year entitlements or prior-year balances beginning in FY2025.
• Adds a mechanism to allocate cooperative SSP aid across multiple cooperative units if applicable, with a cap tied to actual expenditures.
• Creates a new multi-year funding path for SSP aid with defined annual rate steps and a future higher baseline, plus a dedicated appropriation in FY2027 for additional SSP support.

Funding and Fiscal Details

• The base SSP allowance increases in successive fiscal years (FY2025 -> FY2026/2027 -> FY2028+).
• The cooperative SSP allowance also increases in FY2026 and beyond.
• An appropriation from the general fund is authorized for additional SSP aid in FY2027, to be allocated by the commissioner of education.

Implementation Considerations

• districts and charters will need to track adjusted pupil units and manage fund balance limits for SSP aid.
• The changes may affect budgeting decisions for school districts, especially those with multiple cooperative unit memberships.
• The timing of the new appropriation in FY2027 suggests planning for increased SSP funding begins in the 2025–2026 fiscal years.

Relevant Terms - student support personnel aid - student support personnel allowance - adjusted pupil units - fund balance - independent school district - special school district - charter school - cooperative unit - intermediate school district - cooperative student support personnel aid - general fund - commissioner of education - appropriation - fiscal years (FY2025, FY2026, FY2027, FY2028)