MN SF1086

Increases the minimum annual growth rate for Minnesota's general education basic formula allowance from 2% to 5%, effective fiscal year 2026 and later

Raises the maximum inflation-based cap on annual formula allowance increases from 3% to 6%

Maintains the existing formula structure where the allowance equals the previous year's amount multiplied by either the minimum rate or the Consumer Price Index change, whichever is greater

Formula allowance was $7,138 for fiscal year 2024 and $7,281 for fiscal year 2025; future amounts will be calculated using the new higher growth rates

Appropriates funds from the general fund to the Department of Education for fiscal years 2026 and 2027, with specific dollar amounts to be determined