Reallocate school funding with a weighted formula

 

The purpose of this act is to reallocate school funding in Minnesota by pooling all state education revenue and

distributing it through a Weighted Student Funding Formula (WSFF), ensuring that funding follows students based on their

individual needs.

 

 

Minnesota’s current school finance system relies heavily on local property taxes, which results in large funding

disparities between wealthy districts and poorer or rural communities. This bill addresses those disparities by adopting

a Weighted Student Funding Formula (WSFF) in which each student receives a base amount of funding, with additional

weights applied for students with greater educational needs. This ensures that funding is more equitable, transparent,

and reflective of real costs.

Under the WSFF, students from low-income households will generate an additional twenty percent (20%) of the base amount;

English learners will generate an additional twenty-five percent (25%); and students with disabilities will generate an

additional thirty percent (30%). American Indian students will receive an additional fifteen percent (15%), and students

identified as homeless or in foster care will receive an additional twenty percent (20%). Districts located in

geographically isolated or sparsely populated areas will also receive a rural adjustment of ten percent (10%) to account

for higher transportation and operational costs.

To ensure accurate reporting and distribution of weighted funds, school officials and parents must complete a short

annual verification form confirming student eligibility. To prevent financial instability during implementation, no

district will lose more than two to three percent (2–3%) of its total annual funding in any given year. The act also

establishes a five-year transition fund to support districts experiencing revenue decreases, ensuring that all schools

can adjust gradually and continue operations without major disruption.

 

 

Weighted Student Funding Formula (WSFF) - A method of distributing education funds based on student characteristics,

where students with higher needs generate additional funding weights.

low-income households - A household at or below the area’s median income.

English learners - Any student who is learning English or is not yet proficient in the English language.

 

 

The multi-year transition fund established under this act shall be funded through appropriations from the state general

fund dedicated to K–12 education.

 

 

Any school district found to be intentionally misreporting student eligibility or improperly using funds shall be

subject to a reduction of five percent (5%) of its total funding for the following fiscal year.

 

 

July 1st, 2027