HF 2944 Summary

• Creates a comprehensive new education funding framework for Minnesota school districts effective fiscal year 2011, replacing the previous funding structure with revised formulas for basic revenue, extended time, compensatory education, and special education aid.

• Modifies school finance calculations by changing from "adjusted marginal cost pupil units" to "adjusted pupil units" and introduces new equalization factors for debt service, referendums, and location equity based on wage data.

• Establishes an "innovation revenue" requirement for districts demonstrating low growth to implement evidence-based educational improvements and report progress annually to the state commissioner.

• Phases in new revenue formulas over seven years (12.5% fiscal 2011-2013, 25% 2014, 50% 2015, 75% 2016, 100% 2017+) to transition districts from baseline funding under 2008 law to new amounts.

• Updates Minnesota income tax rates for taxable years beginning after December 31, 2009, with top rates adjusted and a temporary 8.175% rate (reduced from 8.5%) for 2010-2011.