MASA Legislative Updates

Latest Update:
Information: Session update - Education Finance and Policy Bill released | June 3, 2025
The Education Working Group has reached an agreement on the education policy and finance bill. This marks a key step forward in shaping education priorities for the coming year. While the language of the bill has been finalized by the working group, it still awaits passage during a special session.
Key funding proposals include:
  • No change to formula inflationary factors.
  • Compensatory revenue modifications funded at $50 million in FY26, compensatory revenue task force is established.
  • Special education transportation reimbursement is reduced by $43 million in FY26-27 and $48 million in FY28-29.
  • Blue Ribbon Commission on Special Education established to find $250 million in savings in FY28-29 or commensurate reductions will be made in special education cross-subsidy aid.
  • Student support personnel aid reduced by $28.7 million in FY26-27 and $23.7 million in FY28-29.
  • School library aid is reduced by $19.6 million in FY26-27 and $22 million in FY28-29.
  • School lunch reimbursement is reduced by $13.4 million in FY28-29.
  • LTFM expanded for roof replacement.

Key policy proposals include:

  • Allows a district to begin the school year on September 1 or later for the 2026-2027 and 2027-2028 school years only.
  • Makes short-call emergency substitute teacher program permanent a program and allows a district to compensate the employe based on the district’s substitute teacher rate of pay.
  • Renames Literacy Incentive Aid to Literacy Aid and allows literacy aid to be used to meet the requirements and goals of a district’s local literacy plan instead of a list of allowable uses.
  • Expanded flexibility in the uses of food service funds.
  • Allows the hours of instruction for secondary students to be reduced by 5 ½ hours for the 2025-2026 school year for Read Act training time.
  • Attached is a summary of the main provisions of the bill. For a detailed section-by-section summary, refer to the House Research/Senate Counsel bill summary.
  • It is important to note that while the bill is largely complete, there remains a possibility of changes before final passage. We will continue to monitor the legislature’s progress and provide updates as more information becomes available.
  • As of now, the Governor has not officially called the special session, and it is unlikely one will be called until agreements are reached on all remaining budget bills. While significant progress has been made, a few key bills are still being finalized.
  • We will continue to monitor the legislature’s progress and provide updates as more information becomes available.

2025 Legislative Updates

Information: MN House leaders announce education committee co-chairs
November 26 2024
Happy Thanksgiving Week!

Last night House leaders, Representative Melissa Hortman (DFL) and Representative Lisa Demuth (Republican), announced they came to an agreement on the committee structure and shared their respective committee co-chairs.

Under the tied House, the committee work will be equally divided and chaired by DFL and Republican co-chairs, but committee membership is not yet determined. 

The education committee chairs are as follows:

Education Finance: Representative Cheryl Youakim (DFL-Hopkins) and Representative Ron Kresha (R-Little Falls) 
Education Policy: Representative Sydney Jordan (DFL-Mpls) and Representative Peggy Bennett (R-Albert Lea) 
Children and Families Finance and Policy: Representative Carlie Kotyza-Witthuhn (DFL-Eden Prairie) and Representative Nolan West (R-Blaine)

Because the Senate DFL retained their majority with the special election of Senator Ann Johnson Stewart, committee leadership changes are not expected in that body.

It is never too early to click on the blue links above to send congratulatory notes to the chairs and share the good work of E-12 public education. MASA Lobbyist Valerie Dosland and I appreciate your assistance in developing relationships with our elected officials while telling a compelling story of the high quality education you provide in your school district. Your voice matters!

Have a terrific day and a very Happy Thanksgiving,

Valerie and Deb​

Questions?
Contact Valerie Dosland at valeried@ewald.com or 612-490-3052, or DebHenton@mnasa.org, or 651-439-7719.

Information: Summary of 2024 November Forecast
​December 4, 2024

Dear MASA Members and Business Partners,

The November forecast was released today. Here is a summary of what was provided:

  • MMB forecasts a $616 million balance at the end of the FY26-27 biennium, which is $1.1 billion less than prior estimates. If discretionary inflation costs are factored in, this surplus would grow to $1.5 billion. In February 2023 state law was amended to require that the impact of inflation be included in spending estimates for all biennials in which a budget is not yet enacted. However, the legislature would still have to act to add these costs to the budget.
  • Spending increases in E-12 education include two key areas - increased special education costs ($908 million), and inflation on the basic formula ($496 million).
  • The budget outlook for FY 28-29 shows a budget deficit ranging from $3.5 billion to $5.1 billion. If the legislature chooses to add discretionary inflation, then the deficit in FY 28-29 grows to $5.1 billion. If not, it's estimated to be at $3.5 billion. 
  • Here is a link to the MMB presentation for additional information.

A special thanks to MASA's Lobbyist Valerie Dosland for summarizing this information.

Deb

​2025 Legislative Session Begins | January 17, 2025
 
House Turmoil
The Minnesota House of Representatives is experiencing significant political turmoil at the onset of the 2025 legislative session. Following the November elections, the House was evenly split, 67-67. However, a judge's ruling disqualified a DFL member-elect due to residency issues, temporarily granting Republicans a 67-66 majority. When that occurred, Republicans argued they had the votes to proceed with electing the Speaker of the House and moving forward with the legislative session in control. The DFL disagreed and made the case that 68 votes (half of the total 134 seats) were needed to proceed with the session. They also made the case that since a DFLer was likely to win the January 28 special election, the body would return to a tie which means a power-sharing agreement would need to be reached.
 
In response, House DFL members boycotted the opening session to prevent Republicans from leveraging this temporary majority. Despite their absence, Republicans proceeded to elect Lisa Demuth as Speaker of the House, asserting that a quorum was reached with 67 members. This procedural conflict has led the House DFL and Secretary of State Simon to petition the Minnesota Supreme Court to resolve the dispute over the legitimacy of the proceedings.
 
Another issue at hand is a disputed election in House District 54A. After a recount and election contest regarding missing ballots, a Scott County judge ruled that the DFL incumbent's election was valid. House Republicans dispute that and have expressed a willingness to refuse to seat that member which would force a special election and possibly tip the balance of power in favor of House Republicans.
 
Minnesota Senate Adopts Bipartisan Power-Sharing Agreement
The Minnesota Senate is currently experiencing a 33-33 tie following the death of DFL Senator Kari Dziedzic in late December. A special election to fill her seat is scheduled for January 28. While a DFL candidate will likely win the seat, the Senate will remain tied for the initial weeks of the session, resulting in a power-sharing agreement between both parties.
 
In contrast to the House, the Senate has adopted a more cooperative approach. Key elements of the power-sharing agreement include co-presiding officers, co-chaired committees, and equal representation in committee membership. This framework will remain in place until a special election on January 28, 2025, determines the vacant senate seat, potentially breaking the tie.
 
Governor Walz Budget Recommendations
Governor Walz released his budget proposal Thursday for the next biennium. The Governor's watchword during his Thursday afternoon press conference was "fiscal responsibility" as he spoke about measures to trim state spending to balance the budget.
 
For K-12 education, the Governor has proposed minimal increases in key areas and some surprising budget reductions in other areas. More details will become available when the budget recommendations are introduced as legislation but below is a summary of the key areas.
Unemployment insurance aid: $30 million in one-time funding for UI reimbursement aid. This funding would be added to the projected carryover from the end of FY25 to FY26 to cover estimated FY26 total summer-term costs that may be submitted.
 
Special education transportation aid: Reduces the formula to 95% in FY26 and 90% in FY27 and later.
 
Alternative teacher compensation: Eliminates program starting in FY27.
 
Literacy incentive aid formula: Discontinue using Minnesota Comprehensive Assessment data as a factor for determining allocations to districts and instead use poverty data.
 
Compensatory hold harmless: Appropriates $39.7 million to extend the compensatory hold-harmless provision into FY 2026. Establishes a working group to make recommendations for improving how compensatory revenue is calculated and distributed.
 
Expand eligible uses of student support personnel aid: Expands eligible uses to maintain student support personnel positions due to enrollment declines, pay for planning and implementing training and job-embedded coaching, and pay for the material costs of evidence-based, culturally responsive curriculums and programs.
 
Cooperative school district student support personnel aid: Establishes a distribution formula for direct aid to cooperative districts rather than funding flowing through member districts.
 
Nonpublic pupil education aid and nonpublic transportation aid: Eliminate the state and school district obligations for nonpublic pupil education aid and transportation aid.
 
Advocacy Next Steps
In the next week or two, you will receive information on connecting with your legislators using our advocacy tool. Our goal is to make it simple for you to connect with your legislators and communicate the organization's legislative priorities. Stay tuned for further details.
 
Bills Introductions of Interest
H. F. 6: Modifying the Read Act; canceling appropriations; providing for education innovation; modifying innovation zone provisions; modifying P-TECH approval process; recodifying and reorganizing education innovation; establishing an Office of Achievement and Innovation in the Department of Education; modifying equity, diversity, and inclusion appropriation; requiring the commissioner to establish a school performance report system; authorizing certain fund transfers for fiscal years 2025 through 2029; authorizing a school board to not comply with certain recently enacted state laws or rules.
S.F. 35: Providing notice if a student is left on a school bus.
S.F. 82: Increasing consolidation transition aid for school districts.
S.F. 89: Repealing the American Indian mascot prohibition.
S.F. 97: Amending exemption requirements for American Indian mascots.
S.F. 133: Expanding the allowable uses of student support personnel aid.
S.F. 244: Establishing education savings accounts.
S.F. 256: Allowing for service animal support in schools.

SESSION UPDATE #2 | Week of January 20, 2025

Ongoing uncertainty in the Minnesota House of Representatives

Things continue to evolve in the MN House of Representatives as the controversy continues about power-sharing, quorum, the special election timing in House District 40B, and concerns over an effort to unseat the DFL representative in House District 54B.
 
Over the past week, several pivotal court rulings disrupted the legislative process. First, the Minnesota Supreme Court voided the date set by Governor Walz for the special election in the vacant Roseville seat so now that won’t occur until sometime in March. Second, the judge in Senator Mitchell’s trial granted a request to delay proceedings until after the legislative session. Lastly, the Supreme Court ruled on the lawsuit regarding quorum requirements, siding with Secretary of State Steve Simon and the House DFL, affirming that 68 members are indeed needed for a quorum. Consequently, the court has nullified all House activity from the past two weeks, and they will need to start over.
 
What lies ahead is uncertain, but the House must reorganize to officially begin the session. However, with 68 votes required to proceed, House DFL and Republican leaders will need to negotiate how to move forward.
 
Normalcy in the Senate?

After reaching a cordial power-sharing agreement, the daily business in the MN Senate has been proceeding. Committee hearings are happening, mostly informational, but some bills are advancing, and floor sessions are short, business-as-usual affairs.
 
The power-sharing agreement will be in place until the January 28 special election to fill the open Minneapolis seat. However, there are rumblings that this agreement could remain in place even after the balance of power shifts back in favor of the DFL after the special election.
 
Committee hearing updates

While primarily focused on overview hearings on the budget forecast and school finance issues, several noteworthy committee hearings also took place last week.
 
The Senate Education Policy Committee heard testimony from superintendents, school board members, school finance directors, and principals about the impact of mandates passed in the last two years and about funding challenges ahead for school districts. The House Education Policy Committee, attended only by Republicans, also held a similar hearing.
 
MASA members testifying included Ranae Case Evenson (Jordan), Jeff Drake (Fergus Falls), Corey McIntyre (Anoka), Michael Thomas (Prior Lake), David Law (Minnetonka), and Jason Berg (Farmington).
 
The House Workforce, Labor, and Economic Development Finance and Policy Committee, attended only by Republicans, heard from school districts on the impact of the ESST and Paid Leave laws. MASA members testifying included Ranae Case Evenson (Jordan), Ann Marie Foucault (St. Michael-Albertville), and Jeremy Schmidt (Becker).
 
Advocacy Next Steps

In next week's update, you will receive information on connecting with your legislators using our advocacy tool. Our goal is to make it simple for you to connect with your legislators and communicate the organization's legislative priorities.
 
Bills Introductions of Interest

SF334: Modifying professional development requirements for Read Act implementation.
SF360: Modifying required mathematics academic standards and credit requirements.
SF411: Allowing all resident home school students to participate in extracurricular activities.
SF412: Allowing resident charter school students to participate in extracurricular activities.
SF413: Allowing resident nonpublic school pupils to participate in extracurricular activities.
SF437: Broadening the natural disaster debt service equalization aid program to assist school districts with a high percentage of property excluded from the tax rolls.
SF442: Establishing a skills path program for employment-based training.
SF464:  Modifying the prohibition on American Indian mascots; appropriating money
SF474: Authorizing school districts and charter schools to use student support personnel aid to fund personnel who work to reduce chronic absenteeism.
SF482: Extending the short-call substitute teacher pilot program.
SF508: Restricting cell phone use in schools; appropriating money.
SF557: Requiring parental notification of adverse incidents.

Information Session Update #3 | week of January 27, 2025

​​Senate Moves Forward as House Remains Stalled

Since last Friday’s MN supreme court ruling, affirming that 68 members are indeed needed for a quorum, no progress has been made toward a resolution on how to convene the House. The main point of contention is the House DFL’s concern over an effort to block the seating of Rep. Brad Tabke, as well as an outstanding special election that could result in a 67-67 tie, potentially requiring a power-sharing agreement. The timeline for the House to reconvene remains uncertain, with no movement expected until DFL and Republican leaders reach a consensus.
 
Meanwhile, the Senate continues its daily business, with committee hearings and floor sessions proceeding without significant political drama. While the balance of power shifted back in favor of the DFL following the January 28 special election, the possibility of maintaining the power-sharing agreement remains.
 
Senate Committee hearing updates

Education Policy
The committee spent a day hearing from school district leaders from around the state their ideas and concerns regarding state laws affecting the teacher supply. Issues raised include challenges with the tiered licensure system, out-of-field permission limitations, posting requirements, and PSEO.
 
The committee also heard SF482, a bill to extend the short-call substitute teacher pilot program to 2027. There was a lengthy discussion about the challenges posed by the required $200 daily rate, which made it difficult for districts to apply for the program. An amendment was adopted to change the rate to $175 for districts in the seven-county metro area and $150 for all other districts. The bill was passed and sent to the Education Finance Committee.
 
Education Finance Committee

The committee heard testimony from school district leaders from around the state about the impact of mandates passed in the last two years and about funding challenges that lay ahead for school districts.
 
The committee also received an update on the Student Attendance Pilot and an overview of the Student Attendance and Truancy Legislative Study Group Report.
 
The committee also heard and laid over for further discussion, SF133, legislation to expand the allowable uses for student support personnel aid to include costs for transportation, equipment, supplies, personnel training, and efforts to reduce chronic absenteeism.
 
Advocacy Opportunity

If you have not yet connected with your legislators, we have created an easy outreach using our advocacy system to send a message to introduce yourself and share our organization’s legislative priorities. You can either use the message as provided but you may also edit the message to share your own thoughts or specific school district information.
 
Important Dates

March 6: Updated state budget forecast
March 31: Eid break
April 11 (starting at noon) – April 21 (returning at noon): Easter/Passover break
May 19: Constitutional adjournment
 
Bills Introductions of Interest

Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with MASA's legislative platform, other bills that are likely to be heard, or that you might hear about locally.
 
SF 676: Requiring notice of violent school incidents; prohibiting retaliation for reporting.
SF 738: A bill for an act relating to education; providing for education innovation; modifying innovation zone provisions; modifying P-TECH approval.
SF 507: Requiring districts to adopt policies and processes to assist parents who require language assistance; requiring reasonable accommodation for parents of children with disabilities.
SF 753: Modifying requirements for parental curriculum review and consent for sexual education curriculum.
SF 771: Modifying the Read Act; canceling appropriations; providing for education innovation; modifying innovation zone provisions; modifying P-TECH approval process; recodifying and reorganizing education innovation; establishing an Office of Achievement and Innovation in the Department of Education; modifying equity, diversity, and inclusion appropriation; requiring the commissioner to establish a school performance report system; authorizing certain fund transfers for fiscal years 2025 through 2029; authorizing a school board to not comply with certain recently enacted state laws or rules.
SF 787: Modifying open meeting law to allow unlimited remote participation.
SF 801: Modifying provisions for teachers licensed in another state to teach in Minnesota
SF 844: Modifying the allowed uses of student support personnel aid for school districts and charter schools with declining enrollment

Legislative Session Returns to Regular Order
Now that the House is fully operational, activity at the Capitol is gaining momentum. This week saw the continuation of official committee hearings, bill introductions, and floor sessions in both chambers. The Senate passed SF334, on a unanimous vote. This bill extends the reduction in required instructional hours for elementary schools by one year and expands it to secondary schools, allowing time for mandatory Read Act training. SF 334 now awaits action in the House.
 
Committee Hearing Updates
Senate Education Policy
The committee reviewed SF508, a bill requiring school districts to implement policies prohibiting cell phone use in grades K-8 and restricting their use in classrooms for grades 9-12. The bill includes exceptions for medical needs, students with an IEP, or cases approved at the discretion of the school principal. After discussion, the committee laid the bill over for further consideration.
 
Senate Education Finance
This week, the committee continued its series of overviews on key topics. Members received a Read Act update, including a report from MDE and insights from teachers, curriculum leaders, and superintendents on their experiences at the district and classroom levels. Additionally, the committee heard an overview from MDE on the universal meals program.
 
Senate Taxes
The committee heard a series of bills to allow specific school districts a refundable sales and use tax exemption for construction materials.
 
House Education Policy
This week the committee heard an overview from the Office of the Legislative Auditor regarding oversight of Feeding Our Future.
 
The committee also heard, and passed on to the Education Finance Committee, HF6, which allows districts to implement innovative programs without approval from the commissioner, transfer funds among accounts and funds, opt out of complying with specific laws enacted in 2023 and 2024, and amends provisions relating to the Read Act. The bill is scheduled for a hearing in the House Education Finance Committee next week.
 
House Education Finance
This week the committee heard an overview from MDE on the Governor’s education budget recommendations. The committee also heard public testimony, including input from education organizations, highlighting concerns over various budget reductions proposed by the Governor.
 
House Workforce, Labor, and Economic Development
Legislation to delay the Paid Leave implementation date for one year was heard and passed to its next committee stop. Those testifying in support of the bill included the Becker School District superintendent, Jeremy Schmidt.
 
Bills Introductions of Interest
Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that are likely to be heard, or that you might hear about locally.
 
HF31, Adjusting school compensatory revenue calculations, modifying site-based spending rules, establishing a task force, updating Read Act training requirements, funding teacher training, and increasing summer term unemployment aid.
HF51,  Authorizing roof projects as part of the long-term facilities maintenance program; appropriating money.
HF52, Increasing funding for pupil transportation; appropriating money.
HF53, Amending the transportation sparsity revenue.
HF56, Creating a safe schools aid; repealing student support personnel aid; appropriating money.
HF57,  Increasing special education cross-subsidy aid.
HF61, Modifying requirements for students with mental illness; requiring mental health instruction; providing for youth sports program training on mental illness and suicide prevention; reinstating restrictive procedures work group.
HF409,  Increasing local optional revenue; increasing the aid amount; appropriating money.
HF515, Increasing the general education basic formula allowance by an additional three percent per year.
HF518,  Repealing the American Indian mascot prohibition.
HF519, Amending exemption requirements for American Indian mascots.
HF535, Broadening the natural disaster debt service equalization aid program to assist school districts with a high percentage of property excluded from the tax rolls.
HF630, Extending the short-call substitute teacher pilot program.
HF744, Modifying professional development requirements for Read Act implementation.
HF745, Calculating a school's compensatory revenue eligibility using both direct certification and the application of education benefits; modifying the percent of compensatory revenue spent at each site under certain conditions; establishing a Compensatory Revenue Task Force.
SF1197: Establishing school district seasonal tax base replacement aid.
SF1198: Authorizing roof projects as part of the long-term facilities maintenance program.
SF1254: Increasing school district local optional revenue; indexing the local optional revenue program to the formula allowance.
SF1275: Linking extended time revenue to increases in the general education basic formula allowance.
SF1318: Modifying the allowed uses of long-term facilities maintenance revenue to include school safety facility enhancements.
SF1336: Allowing a school year to start before Labor Day for two school years.
SF1404: Modifying American Indian mascot exemption requirements; establishing a process for schools to apply for mascot replacement assistance.
 
Important Dates
March 6: Updated budget forecast
March 31: Eid break
Week of April 14: Easter/Passover break
May 19: Constitutional adjournment
June 30: State fiscal year-end
​Legislative activity is increasing and although committees are hearing more bills, the pace is slower than usual. The House is beginning to find its footing, though members are still readjusting after the delayed start and awaiting the outcome of the March 11th special election. That election can shift the balance of power again, potentially resulting in another tie. The Senate, meanwhile, is proceeding at a more deliberate pace, content to wait for the budget forecast on March 6th.
 
Committee Hearing Updates
Senate Education Policy
The Education Policy Committee reviewed several bills, including SF360, which proposes to remove Algebra II as a credit requirement; SF507, mandating school districts to adopt policies and processes to assist parents who require language assistance and accommodations needed due to a disability; and SF1474, requiring public high schools to participate in the direct admissions program through the Office of Higher Education.
 
Senate Education Finance
The committee heard an update on teacher apprenticeship programs and an overview of library services in Minnesota.
 
Senate Taxes
The committee heard another series of bills to allow specific school districts a refundable sales and use tax exemption for construction materials.
 
House Education Policy
The committee heard two bills to roll back new standards requirements. They include HF29, which repeals the ethnic studies requirement enacted in 2023 and suspends implementation of revised social studies standards, and HF65, the bill to repeal the requirement for MDE to adopt state standards and allow local standards instead. Lastly, the committee heard HF12, which proposes to limit participation on an elementary or secondary school sports team for women or girls to persons who meet the definition of female.
 
House Education Finance
This week, the committee heard HF6, the bill to allow districts to implement innovative programs without approval from the commissioner, transfer funds among accounts and funds, opt out of complying with specific laws enacted in 2023 and 2024, and amends provisions relating to the Read Act. The bill is headed to the Ways and Means Committee, its last stop before the full House votes on the proposal. The Senate companion has not received a hearing.
 
The committee heard two bills, HF52 and HF53, which propose to increase the unfunded pupil transportation costs from 35% to 70%.
 
Lastly, the committee heard HF780. This bill appropriates the funding for the state aid required for each forecasted K12 appropriation. The bill has another committee stop before the full House votes on the proposal. The Senate companion has not yet been introduced. Usually, this language is included in an omnibus education budget bill, but it sometimes passes as a stand-alone bill.
 
House Workforce, Labor, and Economic Development
The committee heard an update from the Department of Employment and Economic Development on the build-out of the paid leave program.
 
House Elections Committee
This week, the committee reviewed a bill requiring municipalities, including school boards, to hold their general elections on the first Tuesday after the first Monday in November of even-numbered years. The bill moves now to the Education Policy Committee.
 
Bills Introductions of Interest
Note: This list is not exhaustive but instead highlights bills aligned with the legislative platform, other bills that are likely to be heard, or ones you might hear about locally.
 
HF803, Modifying eligibility criteria for the voluntary prekindergarten program.
HF827, Increasing consolidation transition aid for school districts.
HF875, Expanding the allowable uses of student support personnel aid.
HF899, Modifying the prohibition on American Indian mascots; appropriating money.
HF957, Providing mandate relief for school districts; authorizing certain fund transfers for fiscal years 2025 through 2029; authorizing a school board to opt out of compliance with certain recently enacted state laws or rules.
HF1001, Increasing career and technical revenue for school districts; appropriating money.
HF1030,Requiring reporting of student attendance. 
HF1052, Modifying student discipline provisions. 
HF1053, Encouraging reenrollment after student withdrawal from school; requiring notification and resources for the family of an unenrolled child.
HF1054, Requiring student attendance data in school performance reports.
HF1099, Reducing the share of unreimbursed special education aid paid by the resident school district to a charter school; increasing the state portion of special education aid for unreimbursed charter school expenditures.
HF1124, Allowing a school year to start before Labor Day for two school years; requiring a report. 
HF1161, Establishing school district seasonal tax base replacement aid; appropriating money.
HF1194, Linking extended time revenue to increases in the general education basic formula allowance, appropriating money. 
HF1284, Allowing school district noncompliance with unfunded mandates.
HF1306,MDE policy bill.
HF1325, Modifying earned sick and safe time.
SF1460: Authorizing a school district to reauthorize a capital projects referendum by board action.
SF1602: Permitting certain elected officials and business entities to access student or parent data. 
SF1668: Exempting certain out-of-field permissions from limit on renewals.
 
Important Dates
March 6: Updated budget forecast
March 31: Eid break
Week of April 14: Easter/Passover break
May 19: Constitutional adjournment
June 30: State fiscal year-end

Dear Colleagues,

This afternoon, school district business managers received the attached memo from MDE regarding the adjusted formula allowance for FY 2026. We have long advocated for indexing the formula to inflation, and we’re grateful to see this finally become a reality.

However, as costs continue to outpace the percentage increase, our advocacy isn’t over. Let’s keep pushing for an additional formula increase in the next biennium.

Wishing you all a great weekend!

​Leadership matters,
Deb

Information: Session update #6 - week of February 24, 2025
​Things are moving at the Capitol, but much of the focus is on the upcoming budget forecast, set for release on March 6. Once the legislature has a clearer picture of the state of the budget, they will set budget targets and begin putting their budget bills together.
 
Legislative leaders announced Friday deadlines that bills must be heard to advance. The first deadline, April 4, applies to policy bills, which must clear all relevant committees by then. The second deadline, April 11, applies to budget bills, meaning we’ll know by that date what the House and Senate plan to advance in their education budget.
 
On Friday, MDE announced that the adjusted formula allowance for FY26 will be set at $7,481 per adjusted pupil unit, a 2.74% increase, or $200, over FY25. Additional information on the CPI increase will be posted on the MDE website once the February 2025 forecast has been released.  
 
Committee Hearing Updates
Senate Education Policy
The committee heard an overview from the P-20 Partnership and its annual report along with several bills including SF1457 which requires schools to develop cardiac emergency response plans; SF1462 which transfers from PELSB to MDE the administration for grant programs that focus on increasing the racial and ethnic diversity of the state's teacher workforce; SF197 which adds two student members to the school board; and the MDE policy bill.
 
Senate Education Finance
The committee heard the bill to establish a state Office of Inspector General to centralize investigations on the misuse of state funds; SF510 which proposes to establish a pilot program to increase access to rigorous coursework in participating schools in the 2026-2027 to 2028-2029 school years; and SF1176 which funds the current P-Tech program in Rochester but also establishes a grant program for other partnerships.
 
Senate Higher Education
The committee heard SF1474, which requires a school district high school to participate in the Minnesota Office of Higher Education’s direct admissions program, beginning in the 29-30 school year.
 
House Education Policy
This week the committee heard four bills that address issues raised in the Student Attendance and Truancy Legislative Study Group. Under HF1030, the report parents currently receive on their child's state assessment performance would also include the student's absences from school for the previous year. HF1053 requires school districts to notify MDE of students dropped for 15+ consecutive absences and assigns MDE responsibility for re-enrollment. HF1054  requires the school performance reports posted by MDE to include student attendance data for the previous school year. HF1413 requires MDE to post consistent attendance data for each school year no later than September 1 of the following school year.
 
The committee also heard HF15 which establishes a grant program for school security systems. The bill was amended so the requirement to include safety plans as part of a district LTFM plan only applies to districts receiving the grant. The committee also hear HF22  known as the “Parent's Bill of Rights.”
 
House Education Finance
The committee heard the bill to establish a state Office of Inspector General to centralize investigations on the misuse of state funds, and the bill to repeal the ethnic studies requirement enacted in 2023 and suspend the implementation of revised social studies standards.
 
Bills Introductions of Interest
Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that may be heard, or that you might hear about locally.
 
SF1780:  Requiring members of the legislative committees on education policy and education finance to observe a teacher or administrator each year.
SF1819:  Increasing special education cross-subsidy aid; appropriating money.
SF1830: Allowing for the use of seclusion as a restrictive procedure.
SF1837: Clarifying allowed uses of student support personnel aid.
HF1381, Exempting certain out-of-field permissions from the limit on renewals.
HF1413, Modifying attendance reporting requirements.
HF1415, Increasing funding for the school unemployment aid account in the special revenue fund; appropriating money. 
HF1436, Modifying student discipline provisions. 
HF1457, Prohibiting construction of schools near former landfills.
HF1515, Requiring personal learning plans to include interventions.
HF1538, Appropriating money for teacher apprenticeships; requiring a report. 
HF1542, Making employer participation in earned sick and safe time benefits permissive.
HF1549, Allowing for American Indian drumming in public schools.
HF1550, Authorizing a school district to reauthorize a capital projects referendum by board action.
HF1582, Teachers Retirement Association; providing for an unreduced retirement annuity upon reaching age 60 with 30 years of service; modifying the early retirement reduction factors for annuity commencement before normal retirement age; increasing the postretirement adjustments; removing the postretirement adjustment delay for members who retire before the normal retirement age; increasing employer contributions; increasing the pension adjustment revenue for school districts.
HF1607, Modifying hours of instruction requirements.
HF1719, Allowing students to complete state assessments remotely; appropriating money.
SF1899: Directing the commissioner of education to amend the state's accountability plan. 
SF1982: Eliminating deadlines for active transportation safety training.
SF2002: Calculating a school's compensatory revenue eligibility based on both direct certification and the application of education benefits; modifying the percentage of compensatory revenue spent at each site under certain conditions; establishing a Compensatory Revenue Task Force; requiring reports; appropriating money.
 
Important Dates
March 6: Updated budget forecast
March 31: Eid break
April 4: Policy bill deadline
April 11: Budget bill deadline
Week of April 14: Easter/Passover break
May 19: Constitutional adjournment
June 30: State fiscal year-end
Information Session update #7 - week of March 3, 2025
​​With the uncertainty of the first few weeks of the legislative session behind us, work at the Capitol has been moving along rapidly. Bills are moving through the committee process, and some have even made it to the House floor. One bill of note is HF12, the legislation prohibiting transgender athletes from participating on school sports teams. The bill did not pass is it only received 67 votes, and it needed 68 to pass. Legislation is also humming along in Senate committees, but few bills have made it to the Senate floor for passage yet.
 
The House is expected to take up HF11, which delays the implementation of the Paid Leave law by one year. It is unlikely to pass the house due to the requirement for 68 votes and the Senate companion is not advancing.
 
A special election for the vacant seat in House District 40B will be held on March 11, which might shake things up by restoring the House to a 67-67 tie.
 
Updated budget forecast released
Minnesota Management and Budget (MMB) released its February budget forecast on Thursday, a critical milestone as the legislature begins crafting Minnesota’s state budget for the next two fiscal years.
 
The forecast shows a challenging outlook for the state’s finances. The projected balance for FY26-27 is $456 million, which is $160 million lower than estimates in November. The projected deficit for FY28-29 has risen from $5.15 billion in November to almost $6 billion. Spending is outpacing revenue, largely due to increased costs in education and health and human services (HHS). MMB officials also spoke about how changing policies at the federal level — like tariffs, spending cuts, and layoffs of federal workers — are introducing uncertainty into the economic forecast.
 
House and Senate Leaders will use this updated forecast to develop budget targets for committees, which is the amount committee chairs have to allocate as they begin developing their omnibus budget bills.
 
Committee Hearing Updates
Senate Education Policy
The committee heard legislation to prohibit school construction near a landfill site (SF1979); legislation to modify American Indian mascot exemption requirements and appropriate funds for mascot replacement assistance (SF1404) and legislation to allow for American Indian drumming at school (SF1405).
 
The committee also spent time receiving an overview on special education and heard several bills related to special education – SF256, requiring school districts to allow for students to use service dogs; SF2078 which proposes changes to help reduce required special education paperwork including allowing transition age to begin at age 16 upon parent approval and removing the requirement for short-term objectives.
 
Senate Education Finance
The committee heard overviews on community education, adult basic education, and received an update from the new Department of Children Youth and Families.
 
The committee heard legislation to expand the school-age care levy to students in district pre-k programs and SF2002 which provides a hold harmless for compensatory revenue in FY26 and reinstates the paper form to determine eligibility, in addition to direct certification.
 
House Education Policy
The committee spent a significant amount of time reviewing, and taking public testimony on, three bills to roll back the changes made in 2023 to the school discipline statutes (HF514, HF1052, and HF1436). These bills garnered support from school principals and other administrators. Opposition came from parent advocacy organizations and interestingly, Education Minnesota. No action was taken on these bills.
 
The committee also heard and passed to the Education Finance Committee, HF957, legislation to provide fund transfer flexibility and allow districts to opt out of compliance with the mandates passed in 2023-2024.
 
The committee also heard and passed to the Education Finance Committee, HF877, legislation amending the Read Act and ending MDE's relationship with the University of Minnesota's Center for Applied Research and Educational Improvement (CAREI).
 
House Education Finance
The committee heard an overview of the Postsecondary Enrollment Options (PSEO) program and ideas on suggested changes to the program.
 
The committee also heard and laid over, HF957, legislation to provide fund transfer flexibility and allow districts to opt out of compliance with mandates passed in 2023-2024. Testimony was provided by several school districts in support of this proposal.
 
The committee also heard HF877, the proposal to make changes to the Read Act and end MDE's relationship with the University of Minnesota’s Center for Applied Research and Educational Improvement (CAREI).
 
Bills Introductions of Interest
Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that may be heard, or that you might hear about locally.
 
SF2066: Modifying student discipline provisions.
SF2067: Allowing for administration of a nationally recognized college entrance exam in place of MCAs at high school level.
SF2072: Requiring wellness checks for students receiving online instruction.
SF2188: Appropriating money for additional school unemployment aid.
SF2239: Increasing local optional revenue for school districts.
SF2244: Increasing the referendum levy equalizing factors.
SF2249: Requiring school districts and charter schools that do not participate in the free school meals program to provide certain notice to parents and students.
SF2250: Modifying hours of instruction requirements.
SF2255: Governor’s budget bill.
HF1866, Modifying the allowable uses of school library aid.
HF1901, Modifying provisions for school safety; providing anonymous threat reporting system grants to schools; requiring reporting on active shooter incidents and active shooter threats; modifying reporting to the Minnesota Fusion Center.
HF1928, Requiring due process time for special education forms and procedures; establishing due process aid; appropriating money.
HF1976, Modifying the Minnesota Paid Leave Law.
HF1988, Increasing the referendum levy equalizing factors; appropriating money.
HF1989, Increasing local optional revenue for school districts; appropriating money.
HF1999, Adding certain restrictions on public data requests to a school district.
 
Important Dates
March 31: Eid break
April 4: Policy bill deadline
April 11: Budget bill deadline
April 14-April 18: Easter/Passover break
May 19: Constitutional adjournment
June 30: State fiscal year-end
Special election brings House to 67-67 tie
Democrat David Gottfried won the 40B special election last Tuesday, creating a 67-67 tie in the Minnesota House. This means the House will revert to the power-sharing agreement agreed to earlier in the session. As previously agreed, Rep. Lisa Demuth will continue as Speaker of the House. Committees will now have co-chairs, Republican and DFL, and equal party representation on all committees—except the newly formed Fraud Committee, which remains under Republican control. Moving forward bills will not pass out of committee without bipartisan support. Additionally, passing a bill on the House floor requires 68 votes, making bipartisan cooperation essential for any legislation to advance.
 
The House was set to take up HF11, a bill proposing a one-year extension of the paid leave law’s implementation. However, during that floor session, Rep. Baker tabled the bill, expressing hope that this move would allow more time for discussion and potential compromises on proposed changes.
 
Committee Hearing Updates
Senate Education Policy
Last week the committee heard the bill to replace the MCAs with a nationally recognized college entrance exam, the bill directing the MDE commissioner to amend the state accountability plan to exclude opt-out students from MCA reporting, and the bill to allow schools to begin before Labor Day in 2026 and 2027.
 
Senate Education Finance
The committee reviewed bills addressing school funding and facilities. SF1198 would allow roof projects under the long-term facilities maintenance program, SF1197 establishes seasonal tax base replacement aid, SF1460 would allow school boards to renew capital project referendums without voter approval, SF2244 increases referendum levy equalizing factors, and SF1275 proposes to tie extended time revenue to increases in the basic formula allowance. Lastly, the committee heard SF1457 which mandates districts to adopt cardiac emergency response plans, adds new training requirements, and directs that AEDs be placed in schools and athletic venues.
 
House Education Policy
The committee heard legislation that extends the short-call substitute teacher pilot program and changes the daily rate of pay requirements, a bill to allow districts to access personnel files of prospective teachers from their employing districts, the PELSB policy bill, and a bill requiring legislators to spend 12 hours a biennium observing a teacher or administrator. Lastly, the committee heard two bills to allow more flexibility for school districts - HF1435 provides more flexibility for innovation zones and P-TECH schools and HF1607 expands the types of experiences that districts may count toward the minimum hours of instruction for secondary school students.
 
House Education Finance
The committee received an overview of programs to increase the teacher workforce and heard the bill to establish a statewide teacher apprenticeship program. The committee also heard overviews on the K12 budget forecast, compensatory revenue, and the per-pupil formula.
 
Miscellaneous committee hearings
The Senate State and Local Government committee heard SF787, expanding the open meeting law to allow unlimited remote board member participation.
 
The House Judiciary Committee heard HF101, which clarifies what directory information is to be kept private but allows an exception permitting school districts the option to share directory information with referendum campaign committees.
 
Bills Introductions of Interest
Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that may be heard, or that you might hear about locally.
 
SF2300: Modifying earned sick and safe time provisions.
SF2390: Adding certain restrictions on public data requests to school districts.
SF2557: Increasing funding for the school unemployment aid account in the special revenue fund; appropriating money.
HF2024, Modifying the paid leave program.
HF2056, Establishing general education disparity aid; appropriating money. 
HF2067, Defining attendance. 
HF2100, Increasing local optional revenue authority; appropriating money.
HF2181/SF2555 Expanding eligibility for special education separate sites funding. 
HF2201, Increasing local optional aid for schools; limiting state-paid free school lunches to families with incomes at or below 500 percent of the federal poverty level; appropriating money.
HF2239, Authorizing certain fund transfers for fiscal years 2025, 2026, and 2027; allowing a school board to not comply with certain laws or rules.
 
Important Dates
March 31: Eid break
April 4: Policy bill deadline
April 11: Budget bill deadline
April 14-April 18: Easter/Passover break
May 19: Constitutional adjournment
June 30: State fiscal year-end

More Political Upheaval
Just when things seemed to get back to normal after the House special election, political chaos unfolded this week in the Senate. Former State Senator Justin Eichorn was arrested on March 17 during a police sting operation in Bloomington for solicitation of a minor, who was actually an undercover officer. Facing bipartisan calls for his resignation and potential expulsion from the Senate, Eichorn resigned on March 20, 2025. Senate Democrats now hold a 34-32 majority in the Senate until a special election takes place to fill the seat – likely the first week in May.

Governor Walz Releases Revised Budget Recommendations
Friday the governor released his revised budget recommendations to reflect the growing budget challenges outlined in the recent updated budget forecast.

The governor proposed additional changes to the education budget beyond his first proposals. They include:

  • Eliminating long-term facilities maintenance revenue for charter schools, a reduction of approximately $20 million in FY26-27 and $22 million in FY28-29
  • Eliminating the special education charter adjustment aid formula, a reduction of almost $21 million in FY26-27 and $25 million in FY28-29
  • Reducing the Grow Your Own grant program by $8 million per year beginning FY26
  • Reducing school library aid by $7.5 million in FY26-27 and $15 million in FY28-29
  • Reducing community education equalization aid by $15 million while permitting districts to levy for those costs
  • Eliminating the compensatory pilot program in FY27
  • Reducing telecommunications equity aid by $375,000 beginning FY26
  • Eliminating the computer science advancement grant program.

Combining the governor's initial and revised proposals, his recommendations reduce the overall education budget by roughly $240 million in FY26-27 and $450 million in FY28-29.

Committee Hearing Updates
Senate Education Policy
The committee heard SF2390 which addresses whether school districts can charge for staff time spent redacting non-public data if a requester fails to inspect the data. They also heard SF2250 which expands the types of experiences that districts may count toward the minimum hours of instruction for secondary school students. Lastly, the committee heard bills related to health standards requirements (SF16 and SF1048).

Senate Education Finance
This week the committee heard SF2239 which proposes to increase the per-pupil LOR allowance from $300 to $550 in FY27 and beginning in FY28, the first and second-tier LOR allowances would increase in proportion to annual percentage increases in the basic revenue formula allowance. The committee also heard SF82 which would increase the consolidation transition aid available to school districts in the first two years following consolidation.

The committee also heard legislation to provide ongoing funding for summer-term unemployment insurance. This proposal would appropriate $100 million in state aid in FY26-27 and allow school districts to use the existing unemployment insurance levy beginning FY28.

Lastly, the committee heard SF1404 which modifies the approval process by requiring consent only from the nearest Tribal Nation, rather than all 11 federally recognized Tribal Nations in Minnesota and the Tribal Nations Education Committee. the bill also appropriates funds to cover certain replacement costs.

House Education Policy
The committee heard several bills, including HF1124,  which would allow school districts to start before Labor Day in 2026 and 2027; a bill prohibiting the construction of schools near former landfills; and HF1803 proposing special education paperwork reductions including allowing transition age to begin at age 16 upon parent approval and removing the requirement for short-term objectives. The committee also heard the MDE policy bill.

House Education Finance
The committee considered several bills including HF630 which extends the short-call substitute teacher pilot program and removes the $200 daily rate requirement; HF1435 providing more flexibility for innovation zones and P-TECH schools and HF1607 expanding the types of experiences that districts may count toward the minimum hours of instruction for secondary school students. The committee also reviewed HF745 which expands the eligible compensatory pupil count to include students identified via paper applications and establishes a task force to review and propose revisions to the compensatory formula. Finally, the committee heard legislation to provide ongoing funding for summer-term unemployment insurance. This proposal would appropriate $100 million in state aid in FY26-27 and extends the existing unemployment insurance levy for these purposes beginning FY28.

Miscellaneous committee hearings
House Judiciary
The committee heard HF1999 which addresses whether school districts can charge for staff time spent redacting non-public data if a requester fails to inspect the data. The bill had a provision that would have prohibited anonymous requests, but an amendment was adopted to remove it.

Senate Human Services
The Senate's Omnibus Labor Policy bill, heard in the Human Services Committee, took an unexpected turn with an amendment modifying ESST. This amendment addresses some of the concerns of businesses, school districts, and other local governments. The bill has more stops ahead so stay tuned for further updates or changes.

Bills Introductions of Interest
Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that may be heard, or that you might hear about locally.

HF2318, Teachers Retirement Association; increasing the pension adjustment revenue for school districts; increasing employer contributions; providing for an unreduced retirement annuity upon reaching age 62 with 30 years of service; appropriating money.
HF2377, Requiring access to relationship-building and de-escalation training in schools, appropriating money. 
HF2387, Reducing school food waste; authorizing free school milk during the lunch meal in place of a full school lunch; appropriating money.
HF2388, Replacing local optional aid and levy with basic supplemental revenue; increasing the basic supplemental aid amount; appropriating money.
HF2430, Appropriating money for Read Act training. 
HF2510, Increasing school district local optional revenue; indexing the local optional revenue program to the formula allowance.
HF2511, Modifying the allowed uses of long-term facilities maintenance revenue to include school safety facility enhancements.
HF2516, Restricting cell phone use in schools; appropriating money.
HF2544, Establishing a Dual Enrollment Task Force; requiring a report; appropriating money. 
SF2787: Requiring due process time for special education forms and procedures; establishing due process aid; appropriating money.
SF2839: Reducing the share of unreimbursed special education aid paid by the resident school district to a charter school; increasing the state portion of special education aid for unreimbursed charter school expenditures; appropriating money. 

Important Dates
March 31: Eid break
April 4: Policy bill deadline
April 11: Budget bill deadline
April 14-April 18: Easter/Passover break
May 19: Constitutional adjournment
June 30: State fiscal year-end

Information: Session update #10– week of March 24, 2025
​Budget Targets Announced
The House and Senate released their respective budget targets providing the framework for the overall state budget.

The Senate budget plan proposes to reduce the state budget by $2.5 billion over the next four years. The target for the Education Finance Committee is zero in FY26-27 and a reduction of $687 million in FY28-29. The Senate also allocated a budget target for Pensions totaling $45 million in FY26-27.

The House budget plan proposes to reduce the state budget by $3.7 billion over the next four years. The target for the Education Finance Committee is $40 million in FY26-27 and zero in FY28-29. The House also allocated a budget target for Pensions totaling $248 million over the next four years.

While budget targets provide a general budget framework, the specific details will not be available until the respective education budget bills are released. With the April 11 deadline approaching, we expect their proposals in the early part of the week of April 7.

House Republican Press Conference
On Thursday, House Republican members of the education finance and policy committees held a press conference highlighting their education priorities. In line with bills they advanced earlier this session, the priorities include restoring local control, mandate relief, fund flexibility, and innovation. They did not list specific proposals or discuss funding priorities.

Navigating a Tied House as Budget and Policy Bills Move Forward
With the Minnesota House split 67-67, any bill needs support from both parties to move forward. Committees are evenly divided and co-chaired, so lawmakers must work together to get anything done. Even so, both sides may still be interested in advancing their more controversial policy priorities, even when they are unlikely to pass. It will be interesting to see how they manage this dynamic in the coming weeks, and if they can’t make it work, what that means for the outcome of budget and policy bills.

Committee Hearing Updates
Senate Education Policy
The committee wrapped up hearing individual bills this week and will now focus on the omnibus policy bill. The last of the bills heard included one to allow high school students to possess opiate antagonists, one to direct that the new health standards include instruction on overdose prevention and one to require the MN State High School League to carry a catastrophic insurance policy of at least $10 million. Lastly, the committee heard legislation related to absenteeism.

The committee also released the draft of its Omnibus Education Policy Bill. Key provisions include:

  • Allow school districts to begin the school year on or after August 30 in the 26-27 and 28-29 school years
  • Limiting school district data requests
  • Algebra II must not be required as a graduation requirement
  • Read Act – 5 ½ hours of instruction flexibility in elementary and secondary grades for 25-26 school year
  • Recommendations from the Student Attendance And Truancy Legislative Study Group
  • Indian mascot exemption approval changes
  • Drumming at graduation ceremonies and upon request at other times
  • Student representatives on the school board are strongly encouraged
  • Require the Minnesota State High School League insurance policies must have at least $10 million in lifetime coverage per catastrophic injury

The committee is scheduled to pass the bill, and any amendments, next week.

Senate Education Finance
This week the committee heard legislation to provide more flexibility on the definition of instructional hours, one to allow more flexibility in the use of food service funds, and one to refine the eligible uses of school library aid.

House Education Policy
This week the committee had a full agenda and presumably heard the last of any individual bills. The omnibus policy bill is on the agenda for next week but a bill draft has not been released publicly.

Bills heard include one to clarify what directory information is private (a provision that would have allowed a district to share information with referendum committees was removed), a bill to remove the training deadlines for active transportation safety training, one to address challenges with data requests, a bill to expand the direct admissions program, one to allow for extended hours flexibility for the Read Act implementation, and a bill to limit school board elections to even-year elections.

House Education Finance
This week the committee heard bills to increase consolidation transition aid, allow a student who chooses not to have a free school lunch to receive a serving of milk at no cost, one to provide additional funding for Read Act training, and the Governor’s budget bill (this version is not yet updated to include the revised recommendations released last week).

Lastly, the committee heard HF2388, which proposes to rename local optional revenue to basic supplemental revenue and adds a new first tier of revenue equal to $100 per pupil unit, provided entirely in state aid.

Other Committee Hearings
The Senate Tax Committee heard the bill to establish seasonal tax replacement aid.

The House Tax Committee heard HF1248 which would allow local governments to benefit from a sales tax exemption on all construction materials regardless of whether they do an all-inclusive construction contract or separate contracts for material and labor.

The House Elections Committee heard HF2231 which allows public notice postings on a local government website if no qualified newspaper is available.

The House Workforce Committee heard HF1538 which establishes a statewide teacher apprenticeship program.

Important Dates
March 31: Eid break
April 4: Policy bill deadline
April 11: Budget bill deadline
April 14-April 18: Easter/Passover break
April 24: Governor’s State of the State address
May 19: Constitutional adjournment
June 30: State fiscal year-end

Joint Commission on Pensions and Retirement to Weigh Teacher Retirement Bills
Pension legislation in Minnesota follows a specialized process, beginning with a review by the Joint Commission on Pensions and Retirement (LCPR), a joint House-Senate body that evaluates proposed bills. Once approved, bills move through relevant House and Senate committees before heading to the floor for full House and Senate votes. Final agreed-to versions must pass both chambers before being sent to the Governor for his signature.

Like other budget areas, a target is set for pensions. For FY26-27, the Senate allocated a budget target of $45 million, while the House allocated $124 million. Additionally, the House also allocated $124 million in FY28-29. Before moving forward on pension-related bills, the House and Senate will have to resolve their differences and arrive at an agreed-to target.

On Tuesday, April 8, the commission will hear several bills addressing teacher pension issues.
  • HF1582/SF2000: Allows a full pension at age 60 with 30 years of service, reduces a percentage by which a normal retirement benefit is reduced when a Tier II TRA member elects an early retirement benefit, increases COLA for retirees from a fixed rate of 1.2% to 1.5%, beginning January 1, 2026, removes the COLA delay for retirees who retire before the normal retirement age of 65, and pays for these benefit improvements with an employer contribution increase from 9.5% to 13.3% funded by state aid.
  • HF2318SF3239: Provides for full retirement at age 62 with 30 years of service and pays for these benefit improvements with an employer contribution increase from 9.5% to 10.5% funded by state aid.
  • HF2329/SF2992: Lowers the age from 62 to 60 for the enhanced early retirement reduction.
MASA, along with the Minnesota Association of Secondary School Principals, Minnesota Elementary School Principals’ Association, and Minnesota Rural Education Association submitted a letter urging action on teacher pensions this session (linked).

Focus Shifts to Education Budget - Advocacy Needed
Thanks for your continued advocacy throughout the session. Your efforts have made a real difference in educating legislators about school district budget pressures. With the release of the budget targets, our work is far from over.

The House and Senate will be advancing their respective budget bills in the coming weeks, and it is important that we protect education funding, especially the gains made in 2023, to build inflation into the per-pupil funding formula.

Click here to send a message to your state representatives and state senators asking them to support our public schools. You can send the message as written or personalize it.

Committee Hearing Updates
Senate Education Policy
The committee wrapped up its Omnibus Education Policy Bill this week. The committee adopted several amendments. Other key provisions that remained include:
  • Limiting school district data requests (as amended)
  • Read Act – 5 ½ hours of instruction flexibility in elementary and secondary grades for 25-26 school year
  • Indian mascot exemption approval changes
  • Drumming at graduation ceremonies and upon request at other times
  • Student representatives on the school board are strongly encouraged
  • Require the Minnesota State High School League insurance policies must have at least $10 million in lifetime coverage per catastrophic injury
The committee passed the bill which now heads for a vote by the full Senate in the coming weeks.

Senate Education Finance
This week the committee received an update from MDE on the Governor’s budget bill and took public testimony. Testimony from school districts included concerns about the proposal to eliminate Q-comp, reduce special education transportation aid, and changes to literacy incentive aid as well as support for other portions of the bill for compensatory funding and unemployment insurance aid.

The committee also heard legislation to change how literacy incentive aid is distributed to school districts. The bill changes the existing literacy incentive aid program by establishing three new components (basic literacy aid, English learner concentration factor, and poverty concentration factor). It also changes the eligible uses to align with a district’s local literacy plan and no longer lists specific eligible uses. This is similar to the governor’s proposed changes; his proposal uses only one new factor – poverty concentration.

The committee wrapped up hearing individual bills this week and will shift to the omnibus budget bill next week

House Education Policy
The committee wrapped up its Omnibus Education Policy Bill this week. Key provisions of include:
  • Expanding the types of experiences that districts may count toward the minimum hours of instruction for secondary school students
  • Making permanent the short-call substitute teacher pilot program, removes the required $200 daily rate, and renames the program to “short-call emergency substitute teacher program
  • Delaying the implementation dates for kindergarten assessments until the 2026-2027 school year
  • Allowing a school board to adopt a P-Tech program without commissioner approval and prohibiting the commissioner from approving or denying a school board-adopted experiential and applied learning programs
The committee passed the bill which now heads for a vote by the full House in the coming weeks.

The committee also heard HF1124as amended, which proposes to allow schools to start school on September 1 for two school years.

House Education Finance
The committee wrapped up hearing individual bills this week and will shift to the omnibus budget bill next week. Bills heard include HF1161 establishing a seasonal recreational property tax base replacement aidHF51 which authorizes roof projects as part of long-term facilities maintenance revenue, and HF2201 which limits universal meals to students from families with income at 500 percent or less of the federal poverty guidelines and adds this same amount of aid to the local optional revenue program by adding a new first tier of aid equal to $92 per pupil unit.

Other committee hearings
The House Judiciary Committee heard HF1999, the bill allowing school districts to limit data requests if a person does not appear to inspect the data. The committee passed the bill which now heads for a vote by the full House in the coming weeks. The same language is included in the Senate Education Policy bill.

Important Dates
April 11: Budget bill deadline
April 14-April 18: Easter/Passover break
April 24: Governor’s State of the State address
May 19: Constitutional adjournment
June 30: State fiscal year-end
Senate Education Finance Bill Advances
In advance of the April 11 deadline, the Senate Education Finance Committee passed its omnibus education finance bill. Overall, the Senate education budget target is zero for FY26-27 and a reduction of $687 million in FY28-29.

Key provisions include:
  • delinking the general education funding formula from inflation
  • hold-harmless for compensatory revenue
  • one-time aid for unemployment insurance
  • funding to reduce the special education and English learner cross subsidies
  • a new literacy incentive aid formula
  • flexibility in the use of food service funds
The Senate bill does not include the governor’s proposal to reduce special education transportation aid or elimination of the Q-comp program. It does include the elimination of non-public education aid and nonpublic transportation aid.

The bill must go to the Senate Tax Committee and the Senate Finance Committee before a full vote in the Senate. Further action will be taken once they return from the legislative break.

Linked is a summary of the bill and other related information.

House Education Finance Bill Pending
The House Education Committee was not able to come to an agreement on an overall budget bill so agreed to advance a forecast-only bill. This bill adjusts FY25 education appropriations to match forecast data but does not include any significant funding. The funding levels in the forecast bill are the best estimates of the state aid needed for each K12 program and appropriation. The most likely causes of forecast adjustments are a change in the estimated pupil counts for that year, a change in program participation, or a change in the underlying inflation assumption for a program.

Co-chairs Rep. Ron Kresha and Rep. Cheryl Youakim indicated they are working to reach agreement on a more robust bill and hope to have one ready for when they return from the legislative break.

Joint Commission on Pensions and Retirement Reviews Teacher Pensions Bills
On Tuesday, the Joint Commission on Pensions and Retirement met and heard testimony on the following pension bills. No action was taken.
  • HF1582/SF2000: Allows a full pension at age 60 with 30 years of service, reduces a percentage by which a normal retirement benefit is reduced when a Tier II TRA member elects an early retirement benefit, increases COLA for retirees from a fixed rate of 1.2% to 1.5%, beginning January 1, 2026, removes the COLA delay for retirees who retire before the normal retirement age of 65, and pays for these benefit improvements with an employer contribution increase from 9.5% to 13.3% funded by state aid.
  • HF2318SF3239: Provides for full retirement at age 62 with 30 years of service and pays for these benefit improvements with an employer contribution increase from 9.5% to 10.5% funded by state aid.
  • HF2329/SF2992: Lowers the age from 62 to 60 for the enhanced early retirement reduction.

Important Dates
April 14-April 18: Easter/Passover break
April 23: Governor’s State of the State address
May 19: Constitutional adjournment
June 30: State fiscal year-end
Senate District 6 Special Election Update
In the April 15 Republican primary for the special election in Senate District 6, Keri Heintzeman emerged victorious from a crowded field of eight candidates.She will advance to the April 29 special election, where she will face DFL nominee Denise Slipy. This special election was called following the resignation of former Senator Justin Eichorn.

Three Weeks Remain
With just three weeks remaining in the legislative session, the various budget bills continue to advance through the legislative process. The Senate education finance bill, which was heard in the Senate Tax Committee this week, has one more committee stop before a full vote in the Senate. Attached is an updated summary of the Senate bill and a new run showing the impact of changes to library aid.

The House Education Finance bill is not yet released, but I believe we will have more information on the bill early next week.

Overall, negotiations between the House, Senate, and Governor have been ongoing to reach a final budget framework that will provide the framework for the respective budget bills. Given the significant differences between the three, the 67-67 split in the House, and concerns over future budget deficits, the leaders have their work cut out for them. However, all three are confident they can agree in time to pass the final budget bills before the May 19 constitutional adjournment deadline. If a budget agreement is not reached, a special session may be required ahead of the June 30 fiscal year-end.

Senate Education Policy Bill Advances
Thursday, the Senate debated and passed the Omnibus Education Policy Bill. Several amendments were adopted. They include:
  • Short–Call Substitute Teacher Program is made permanent, and the $200 daily minimum pay requirement is removed. Instead, a district can provide compensation at either the district’s short-call substitute rate or the employee’s regular rate of pay, whichever is higher.
  • Requires that a student enrolled in a dual immersion program be screened in English in kindergarten, in the primary language of instruction at each screening window, and in English starting in third grade when the program is taught equally in English and the partner language, whichever occurs first. Also clarifies that after a student’s initial screening for characteristics of dyslexia, the school district has discretion to determine when to screen English learners scoring below three on the ACCESS assessment for characteristics of dyslexia
  • Allows the use of seclusion through grade 6 upon agreement with the parent and the IEP team
  • Requires that the Minnesota State High School League insurance policies have at least $5 million in lifetime coverage per catastrophic injury
  • Limits school district data requests
As a reminder, below is a summary of other key provisions in the bill:
  • Requires school districts to prohibit cell phones and smartwatches
  • 5 ½ hours of instruction flexibility in elementary and secondary grades for 25-26 school year
  • Includes recommendations from the Student Attendance And Truancy Legislative Study Group
  • Clarifies the Indian mascot exemption approval process
  • Requires schools to allow drumming at graduation ceremonies and upon request at other times
  • Strongly encourages student representatives on the school boards
Senate Elections Bill
The Senate Elections bill includes a provision to require school board members, school superintendent, and other school district staff involved with school district budgets to file an economic interest statement. We have raised concerns about this provision and will be advocating for changes.

Important Dates
May 19: Constitutional adjournment
June 30: State fiscal year-end
House Education Bill Advances — But Not Without Complications
This House Education Finance Committee advanced its omnibus budget bill. Overall, the House education budget target is $40 million for FY26-27 and $0 for FY28-29. Key provisions of the bill include:
  • $40 million for READ Act compliance.
  • $30 million for unemployment insurance aid in FY26 only and repeals the program after the 2028 summer term.
  • Renames Local Optional Revenue to Basic Supplemental Revenue and adds a new first tier of revenue provided to all school districts as state aid. Aid equals $40.34 per adjusted pupil unit in FY26, $40.45 in FY27, $43.72 in FY28, and $43.82 in FY29 and later.
  • Reduces special education transportation reimbursement from 100% to 95% but keeps reimbursement costs for transportation of homeless and highly mobile students at 100%.
  • Reduces student support personnel aid formula from $48.73 to $40 in FY26 and FY27 and $42 in FY28 and later. Expands the allowable uses. Makes no changes to the formula for cooperative school districts.
  • Expands LTFM eligibility for roof repairs.
  • Eliminates school library aid.
  • Expands flexibility for surplus food service funds for expenses that improve the school food service, including the costs of plumbing, electrical, air handling, ventilation, or other work necessary to operate equipment essential for food service activities.
Attached is a summary of both the House and Senate bills and other related information.

While the House bill has advanced through several committees, the timeline for a full House vote is uncertain. A major point of contention is the proposed repeal of summer unemployment insurance benefits for unlicensed school employees. Although DFL leadership agreed to the unemployment insurance provision, rank-and-file Democrats have said they will withhold support unless changes are made. The finance bill, along with the education policy bill, is tentatively scheduled for a House vote on Monday, pending an agreement on how to address the impasse. If no agreement is reached, the bill is unlikely to be brought to a vote on Monday.

Amended Senate Education Finance Bill Advances
The Senate Education Finance bill cleared its final committee and is now headed to a full Senate vote. A significant change was made - the permanent elimination of inflation adjustments to the formula has been revised to a temporary freeze for FY28–29 and resumes in FY30.

Another amendment was adopted that fully restores funding for school library aid while eliminating telecommunications access aid.

Earned Sick and Safe Time Bill Advances in the Senate
This week, legislation to modify the ESST law advanced and is expected to be voted on in the Senate next week. SF2300 makes three key changes that are important for school districts:
  • Prorated ESST hours for part-time staff and employees hired mid-year, ensuring more practical and equitable implementation.
  • Allows employers to require notification of the need to use ESST by an employee that is unforeseeable as that is “reasonably required by the employer,” instead of the current “as soon as practicable.”
  • Provides replacement language regarding the use of additional paid leave amounts in excess of the ESST requirements provided to employees - allows employers to limit the application of the minimum standards and requirements under the ESST law to no less than the available leave or 160 hours in a twelve-month period, whichever is less.
House Workforce, Labor, and Economic Development Finance Bill
The House Workforce, Labor, and Economic Development Finance Bill, advanced late in the week, includes $1.5 million per year for a statewide teacher apprenticeship competitive grant program. The Senate companion bill has no comparable provision.

Important Dates
May 19: Constitutional adjournment
June 30: State fiscal year-end

View a full update here
Senate Back to Full Capacity with New Member Sworn In
Tuesday was only the fifth day of the 2025 session with all 201 legislators present. That follows the swearing-in of GOP Sen. Keri Heintzeman, which returned the Senate to a narrow 34-33 DFL majority.

Budget Talks Inch Forward as Session Deadline Looms
The House and Senate have advanced most budget bills, and some conference committees are now working through the differences.

The House education finance bill remains unresolved and has not advanced for a floor vote. The proposed repeal of summer unemployment insurance for unlicensed school staff continues to be  the biggest sticking point. The Senate is holding off on a vote until the House acts on its version of the education bill.

Additionally, progress on a broader budget agreement has been slow, and at this point, it seems unlikely, but not impossible, that the Legislature will wrap up on time.

Continued Advocacy
Thank you for all the work you have done to engage with your local legislators this session. At this point, decisions on the education budget bill are happening among a small group of key lawmakers.

If you or anyone in your district has a direct line to these key legislators, now is the time to reach out. It’s important they hear the need for ongoing investments in public education, like the inflationary factor on the per-pupil formula, READ Act funding, compensatory revenue, local optional revenue, and also the need to address the unemployment insurance mandate.

Rep. Lisa Demuth, Speaker of the House, rep.lisa.demuth@house.mn.gov
Rep. Melissa Hortman, Speaker of the House Emeritus, rep.melissa.hortman@house.mn.gov
Rep. Paul Torkelson, Co-chair, House Ways and Means Committee, rep.paul.torkelson@house.mn.gov
Rep. Zach Stephenson, Co-chair, House Ways and Means Committee, rep.zack.stephenson@house.mn.gov
Rep. Ron Kresha, Co-chair, House Education Finance Committee, rep.ron.kresha@house.mn.gov
Rep. Cheryl Youakim, Co-chair, House Education Finance Committee,  rep.cheryl.youakim@house.mn.gov

Sen. Erin Murphy, Senate Majority Leader, sen.erin.murphy@mnsenate.gov
Sen. John Marty, Chair, Senate Finance Committee, sen.john.marty@mnsenate.gov
Sen. Mary Kunesh, Chair, Senate Education Finance Committee, sen.mary.kunesh@mnsenate.gov

Governor Tim Walz

Tax Bills Advance
This week, the House and Senate advanced their respective omnibus tax bills. The House bill does not include any major school-related tax provisions. The Senate bill has one provision – a new school district aid program that offsets voter-approved operating referendum levies in districts with class 4c(12) seasonal recreational property. Here is a district run to see how the proposal impacts your school district.

Earned Sick and Safe Time Bill Passes in the Senate
This week, legislation to modify the ESST law passed the Senate.  SF2300 makes three key changes that are important for school districts:
  • Prorated ESST hours for part-time staff and employees hired mid-year, ensuring more practical and equitable implementation.

  • Allows an employer to request reasonable documentation of the need for an employee to use ESST after two consecutive scheduled work days of an employee’s use of ESST. The current law allows an employee to request this documentation after three consecutive scheduled work days.

  • Provides replacement language regarding the use of additional paid leave amounts over the ESST requirements provided to employees - allows employers to limit the application of the minimum standards and requirements under the ESST law to no less than the available leave or 160 hours in a twelve-month period, whichever is less.
The House companion has not advanced, but our understanding is that Sen. Seeberger, the bill author, has a commitment from Senate DFL leadership that the provisions in SF2300 would be part of the discussion and negotiations on a final labor budget and policy bill.

Important Dates
May 19: Constitutional adjournment
June 30: State fiscal year-end
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