Calculation of compensatory aid for fiscal year 2027 modified, allocation of compensatory aid for fiscal year 2028 modified, and money appropriated.

HF 4980 modifies how Minnesota calculates and distributes compensatory education funding for school buildings in fiscal years 2027 and 2028. The bill changes the revenue formula to be based on the number of compensatory pupils rather than a fixed allowance per pupil and introduces a minimum funding floor for the 2027 school year. It also increases the percentage of funds school districts can reallocate to specific sites from 20 percent to 40 percent for these two years. Finally, the legislation appropriates money from the general fund to the commissioner of education to support these changes.