Budget Update
On February 27, Minnesota Management and Budget released an updated budget forecast showing a significantly improved budget outlook. While the November forecast showed a dampened economic outlook, this new forecast shows stronger revenues and a more positive overall fiscal outlook for the state.
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The projected balance for the current biennium is $3.7 billion, $1.3 billion higher than the November forecast.
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For the FY28–29 biennium there is a surplus predicted of $377 million, instead of the $3 billion deficit predicted in the November forecast.
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The E12 budget is projected to increase by $111 million. Most of this growth is driven by rising special education costs, including higher salaries and benefits for special education staff, an increase in staffing to provide special education services, expanded transportation expenses, and greater participation in the Alternative Delivery of Specialized Instructional Services (ADSIS) program.
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While legislators may caution against additional spending, the updated forecast gives school districts the opportunity to make the case for extending the compensatory hold harmless another year and repealing the $250 million reduction to special education cross-subsidy aid in the next biennium.
House Education Policy Committee
This week, the committee heard HF3489, which modifies the law relating to grooming and other offenses against students. The bill was passed and sent to the House Public Safety Committee. The committee also debated the bill to codify in state law the right to free public education regardless of a child’s immigration or citizenship status (which failed on a tie vote along party lines); the bill to require school districts to use anonymous threat reporting systems (no action was taken on the bill); and legislation to modify the criminal statute that regulates the possession of firearms on school property (which failed on a tie vote along party lines).
Senate Education Policy Committee
The committee heard the bill to prohibit cell phones in schools. No action was taken on the bill. The committee heard and acted on two bills to address concerns about recent federal immigration actions. The first bill codifies in state law the right to free public education regardless of a child’s immigration or citizenship status. The second limits access to federal immigration enforcement on school sites. Both bills passed and will next be heard in the Senate Judiciary Committee.
House Education Finance Committee
This week, MDE provided the committee with an overview of the 15-day drop statute and heard from school districts participating in the student attendance pilot.
The committee also heard several bills related to school safety funding. One bill appropriates $25 million for school safety grants. Several other bills (HF3493, HF3494, HF3495) propose funding for schools that do not currently receive safe schools funding (nonpublic schools, charter schools, cooperative units, and Tribal contract schools). The committee also heard legislation to require schools to develop school safety plans. No action was taken on these bills and instead they were laid over for further consideration.
Senate Education Finance Committee
This week, MDE provided an overview on the 15-day drop statute and COMPASS & MTSS. The committee also heard from school districts participating in the Student Attendance Pilot Program.
Joint Commission on Pensions and Retirement
The commission held its first meeting this week and heard updates from the various pension funds.
TRA shared with the two return-to-work proposals included in their legislative priorities: 1) suspend the reemployed annuitants’ earnings limitation through 2030; and 2) lower the age a retiring teacher can enter into a return-to-work agreement with their employer, from age 62 to 59-1/2.
Key Bill Introductions
This is not a comprehensive list of all bills introduced. It focuses on key legislation aligned with legislative priorities and bills that may be of interest or concern to school districts.
HF3653, Increasing safe schools revenue to school districts; providing safe schools aid to charter schools and cooperative units (MASE priority)
HF3730, MDE Policy Bill
HF3770, Allowing a school district or charter school to opt out of statewide assessments.
HF3776, Prohibiting screen time for children in preschool and kindergarten
SF3722, Requiring notice of procedural safeguards for special education
SF3908, Authorizing continued enrollment for students for the remainder of the 2025-2026 school year
SF3909, Repealing the contingent reduction in special education aid appropriations (MASE priority)
