School's compensatory revenue eligibility calculated on the basis of both direct certification and the application of education benefits, percent of compensatory revenue spent at each site under certain conditions, Compensatory Revenue Task Force established, reports required, and money appropriated.

HF 745 modifies how Minnesota school districts calculate compensatory revenue eligibility for low-income students, requiring districts to count children eligible through both direct certification (like SNAP benefits) and education benefits (such as school meal programs) as of October 1 each year. It adjusts spending rules, requiring at least 80% of compensatory revenue to be spent at individual school sites (with a temporary 40% allowance for 2026-2027 if meal program data is incomplete) and mandates reporting for adjustments due to enrollment changes. The bill establishes a Compensatory Revenue Task Force, composed of education officials, school board representatives, and parent advocates, to analyze the funding formula and make recommendations. It appropriates funds for these changes and takes effect for fiscal year 2026.