Compensatory Revenue Task Force establishment provision, calculating a school's compensatory revenue eligibility on the basis of both direct certification and the application of education benefits provision, compensatory revenue spent at each site under certain conditions modification provision, and appropriation

This bill modifies how Minnesota school districts calculate compensatory revenue eligibility for schools serving high numbers of low-income students. It requires using both direct certification (based on free/reduced lunch eligibility) and education benefits applications to determine eligibility, and adjusts spending rules - allowing up to 40% of funds to be allocated to school sites under specific conditions for fiscal years 2026-2027 (previously 80%). It also establishes a Compensatory Revenue Task Force to review the funding formula, including revenue levels and distribution methods, with members representing school boards, education organizations, and parents. The changes affect all public school districts receiving compensatory revenue under Minnesota Statutes sections 126C.10 and 126C.15, effective for fiscal year 2026 and later.