Bill > HF515

This bill increases the general education basic formula allowance by modifying how the funding is calculated for Minnesota school districts. Currently, the formula allowance for fiscal year 2024 is $7,138 and for fiscal year 2025 is $7,281. Starting in fiscal year 2026, the bill changes the annual increase method from a 2% automatic increase to a 5% increase, or the rate of inflation (whichever is greater), but caps the increase at 6%. The Commissioner of Education will calculate the inflation rate each January by comparing the Consumer Price Index for urban consumers from specific calendar quarters, and must publish the formula allowance by the end of February each year. The bill emphasizes the legislature's commitment to funding public schools consistent with constitutional obligations and leaves open the possibility of additional increases in the future. The bill also includes a placeholder for an appropriation of general education aid, though the specific dollar amounts are not specified in the provided text. The changes to the formula allowance will be effective for fiscal year 2026 and subsequent years.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0515&ssn=0&y=2025