Governor Walz released his 2026 supplemental budget last week, proposing an expansion of the state's Child Tax Credit, a new tax on social media companies, spending reductions in nursing homes and disability services, and a reduction to the statewide sales tax.
For K12 education, the governor is proposing to reduce the budget by $50 million, all in special education cross-subsidy aid. This additional $50 million reduction is on top of the $250 million reduction passed in the 2025 legislative session. The governor also proposes to change the literacy aid formula to be based on EL and poverty concentration rather than MCA proficiency data and growth rate.
Key highlights:
Special Education Blue Ribbon Commission (BRC) – additional budget reduction (FY28-29): Increases the savings the BRC must find from $250 million to $300 million; if the commission cannot find savings, the MDE commissioner must find the commensurate savings by reducing cross-subsidy aid. The recommendations also stipulate that the BRC savings target must be made by eliminating costs, not shifting costs out of special education to other K12 funding streams.
Literacy Aid Distribution Formula (FY27): Changes the distribution formula to be based on English learner and poverty concentration factors instead of MCA proficiency data and growth rates.
Student Support Personnel Aid For Cooperatives School Districts: Aid would be distributed directly to eligible cooperative units serving students. Cooperative unit aid per member district will be the greater of $40,000 or a per-pupil formula amount that increases across fiscal years 2024–2026.
Student Support, Intervention, and Resource Teams (SSIRTs): Districts and charter schools will be required to establish SSIRTs focused on school safety, prevention, intervention, and student support.
Take Action: Contact Your Legislators
Reach out to your legislators about the governor’s proposed cuts to special education here.
Committee Updates
With the March 27 bill deadline fast approaching, the House and Senate Education Policy Committees will focus next week on finalizing their last bill hearings. The Senate Education Policy Committee finished hearing most of its bills this week and will focus on assembling its version of an omnibus policy bill next week. The House Education Policy Committee has scheduled more bills next week, and it’s unclear whether they will move forward with an omnibus policy bill. Key bills heard this week include:
SF3717 makes modifications to crisis management policy requirements for schools.
SF4023 would allow schools to dismiss students in grades K-3 for up to a day and a half.
SF3368 would allow more options for paraprofessionals working in Title 1 programs to meet required federal qualifications.
SF4505 would restore the cut to student support personnel aid made during the 2025 legislative session.
Important Dates
March 27, 2026: First and Second Committee Deadlines
March 27-April 7, 2026: Easter/Passover Break
April 17, 2026: Third Committee Deadline
May 18, 2026: Adjournment of Legislative Session
Helpful Links
For updates on activities at the House of Representatives, visit the House Session Daily website.
For updates on activities at the Senate, visit Senate Media Services.
To follow committee hearings, visit the Combined Committee Schedule.
To watch House committee and floor sessions, visit the House of Representatives YouTube Channel.
To watch Senate committee and floor sessions, visit the Senate YouTube Channel.
Current list of Legislative Retirements
