Bill > SF2002

This bill establishes a Compensatory Revenue Task Force to comprehensively analyze and improve Minnesota's education funding formula for schools serving students from low-income backgrounds. The bill makes several key changes to how schools calculate and allocate compensatory revenue. First, it expands the methodology for determining student eligibility for compensatory funding by allowing schools to use both direct certification (automatic qualification based on participation in public assistance programs) and applications for educational benefits. For fiscal years 2026 and 2027, the bill provides additional flexibility by allowing school districts to allocate up to 40 percent of compensatory revenue across school sites according to a board-approved plan, compared to the previous limit of 20 percent. The task force, composed of representatives from various education organizations and government agencies, will be charged with evaluating the current compensatory revenue system, including examining which students should generate such funding, determining the best demographic variables for identifying schools in need, and exploring potential improvements to the funding formula. The task force is required to submit a preliminary report by February 15, 2026, and a final report by February 15, 2027, after which the task force will dissolve. The bill aims to ensure that compensatory education funding more effectively supports students who are academically under-prepared or facing economic challenges.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2002&ssn=0&y=2025