End of legislative session brings careful review

End of legislative session brings careful review by district to assess impact of approved bills
Posted on 05/18/2023
Legislative Update
With the Minnesota Legislature scheduled to finish its work and adjourn on Monday, May 22, school districts around the state are awaiting the final approval of the Omnibus Education Bill. The provisions included in this bill will outline the funding districts will receive for the next two years and also likely include other provisions that will impact how districts operate.

“While we are hopeful that the final bill will provide additional funding for our district, the final impact will not be known until the bill is approved by the House and Senate, and signed by Governor Walz,” said Farmington Area Public Schools Superintendent Jason Berg. The details of the final bill are important because more than 70% of the district’s funding comes from the state. Legislative action can have an impact on both the district’s revenue and expenditures, as well as the financial planning for future years. 

The provisions of the Omnibus Education Bill being considered by the legislature include the following:
  • A general education funding formula increase of 4% for 2023-2024 and 2% for 2024- 2025.
  • The general education funding formula will be linked to inflation beginning in 2025-2026, which means funding for schools will increase in future years as inflation rises.
  • Funding to reduce the “special education cross subsidy,” which means that districts will need to use less general education funding to cover part of required special education costs. Under the current proposal, the state will cover 44% of the special education cross subsidy for the next three years, which means districts will continue to cover 56% of the cross subsidy using general education funding.* 

Along with the proposals noted above that would increase revenue for districts, there are also numerous proposals that would increase mandates and expenditures for districts. In some cases, the costs of these proposals could potentially exceed the revenue provided by the state and put additional pressure on district finances in coming years.

More information on the impact of the bill for Farmington Area Public Schools will be shared in the coming weeks once the bill is finalized. To learn more about this, school finance, and the budgeting process please visit our Budget Info & FAQ webpage

*Please note that additional information has been added for increased clarity.