General education basic formula allowance increased by an additional three percent per year, and money appropriated.
Summary
HF515 would increase Minnesota’s general education basic formula allowance for public schools by an additional three percent per year beginning in fiscal year 2026. The bill amends Minnesota Statutes, section 126C.10, subdivision 2, to change the annual growth factor for the formula allowance from the current structure to a higher minimum increase, with the allowance still tied to inflation but capped at a larger maximum rate. It also states legislative intent that public schools be funded consistently with constitutional obligations.
In addition to changing the formula, the bill includes an appropriation from the general fund to the Department of Education for general education aid in fiscal years 2026 and 2027, though the dollar amounts are left blank in the text provided. The practical effect would be to increase state aid flowing to school districts through the basic revenue formula, which is the core funding mechanism for Minnesota’s public schools.
Impact
The bill would directly amend Minnesota’s school finance law by revising the annual formula allowance used to calculate basic revenue under section 126C.10, subdivision 2, and by increasing state general education aid appropriations. This would raise the baseline per-pupil funding formula for school districts starting in fiscal year 2026, affecting state budget obligations and the amount of aid distributed to districts based on adjusted pupil units. Because the formula allowance is a central component of school funding, the bill would have broad fiscal effects on the state and on public school districts across Minnesota.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears supportive of increased school funding. The bill is authored by multiple House members and was referred to the House Education Finance Committee, suggesting it was introduced as a policy proposal to strengthen public education financing. The language emphasizing constitutional obligations and additional increases in the formula allowance reflects a favorable posture toward expanding school aid.
Contention
The main point of contention is likely fiscal: increasing the formula allowance by an additional three percent per year would raise state spending and could compete with other budget priorities. Supporters would likely argue that schools need predictable, inflation-adjusted funding and that the state has a constitutional duty to adequately fund public education. Opponents, if any, would likely focus on the cost to the general fund, the size of the increase, and whether the formula should be adjusted through this bill rather than through the regular budget process. No specific objections or recorded votes are provided in the materials.