Bill > HF745

This bill modifies how schools calculate and allocate compensatory revenue, which is funding designed to support students from low-income backgrounds. The bill expands the method of determining student eligibility for compensatory revenue by allowing schools to use both direct certification (automatic enrollment based on participation in public assistance programs) and application of educational benefits. For fiscal years 2026 and 2027, school districts will have more flexibility in allocating compensatory revenue, potentially allowing up to 40% of funds to be distributed according to a school board's plan, compared to the previous 20% limit. The bill also establishes a Compensatory Revenue Task Force composed of representatives from education organizations, government agencies, and parent advocates. This task force will comprehensively analyze the compensatory revenue formula, examining issues such as which students should generate the funding, what data should be used to identify eligible students, and how the revenue can be most effectively used to support student learning. The task force is required to submit a preliminary report by February 15, 2026, and a final report by February 15, 2027, with the goal of potentially reforming the compensatory revenue system. The bill includes provisions for administrative support from the Department of Education and appropriates funds to support these activities.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0745&ssn=0&y=2025