Bill > SF1086

This bill increases the general education basic formula allowance by modifying how annual funding adjustments are calculated for Minnesota school districts. Specifically, the bill changes the formula allowance growth rate from 1.02 (2%) to 1.05 (5%) for fiscal year 2026 and beyond, while also capping the maximum annual increase at 1.06 (6%) instead of the previous 1.03 (3%). The formula allowance will continue to be adjusted based on the Consumer Price Index (CPI), which measures inflation by comparing the average consumer prices in the fourth quarter of different fiscal years. For context, the bill sets the formula allowance at $7,138 for fiscal year 2024 and $7,281 for fiscal year 2025, with subsequent years' allowances calculated using the new percentage-based method. The commissioner of education is required to calculate and publish the formula allowance by the end of February each year, with the goal of funding public schools consistent with constitutional obligations. The changes to the formula allowance calculation will take effect in fiscal year 2026.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1086&ssn=0&y=2025