Home Minnesota Educator What are the direct funding impacts educators will see?

What are the direct funding impacts educators will see?

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There were significant changes to how public schools will be funded in Minnesota this legislative session. The next few pages are a breakdown of only a handful and how they will impact educators’ working conditions.

English language learner revenue

The ELL revenue was significantly expanded in FY2024 and 2025 from $704 to $1,228 per eligible English learners enrolled in the district and to $1,775 thereafter. The bill also creates EL cross-subsidy aid starting in FY2027 to provide additional funding for EL costs.

How will this impact me?

Currently, districts must cover the ELL cross-subsidy with money from their general fund. With this dedicated funding to provide these crucial services, more general fund dollars will be available to go to educators’ salaries, benefits and directly to classroom support.

Basic formula revenue increase

The formula was increased by 4% and 2% in the biennium, from $6,863 to $7,138 for fiscal year 2024 and $7,281 for fiscal year 2025. Basic formula allowance will be tied to inflation for future years, with a minimum of 2% and a cap of 3% in statute. The language is also explicit that the Legislature may provide funding beyond the 3% percent cap to fund schools consistent with its constitutional obligation.

How will this impact me?

The per-pupil funding is a direct tie to supporting educators and classrooms. Educators can use the funding infusion to bargain for increases in wages, benefits and to improve their working conditions. Being tied to inflation also means that districts have a consistent number to use for budgeting and those increases should go directly to educators and students.

Referendum revenue

The full amount of a voter-approved levy will now be renewable by a school board vote rather than a vote of the district electorate. A board-approved renewal is only possible if the amount of the levy remains unchanged, including levies with an automatic inflation-adjustment that has been approved. The term of the referendum levy renewal by the board is limited to 10 years. This renewal can happen one time before returning to voters.

How will this impact me?

This change will provide a way to hold their operating budgets harmless for districts that do not wish to increase the value of their referendum revenue or believe they will face significant opposition.

Full-service community schools

An expansion of statutory guidance and funding for full-service community schools is included in the education bill, including grants from MDE to districts and charter schools of $100,000 per site for the first year for planning activities, and $200,000 per year for each site for up to three years of implementation.

How will this impact me?

FSCS are a proven model to reduce opportunity gaps by welcoming community members as partners in school improvement, bringing community services into the school, and empowering the people closest to students to examine disparities.

Special education cross-subsidy aid, homeless pupil aid

The special education cross-subsidy aid increases in fiscal years 2024 through 2026 from 6.43% to 44% of each school district’s special education cross-subsidy, then increases the cross-subsidy aid percentage again in fiscal year 2027 to 50%. This lowers the cross-subsidy to approximately 14% of special education costs. The bill also creates a component of special education funding for districts not eligible for full reimbursement of their transportation costs for homeless and highly mobile students.

How will this impact me?

Currently, districts must cover the special education cross-subsidy and transportation costs with money from their general fund. With this dedicated funding to provide these crucial services, more general fund dollars will be available to go to educators’ salaries, benefits and directly to classroom support.

Student Support Personnel Aid

Student support services personnel are defined as school counselors, school psychologists, school social workers, school nurses, and chemical dependency counselors. Districts will receive funding on a formula basis with charter schools guaranteed at least $20,000 in annual aid and small districts at least $40,000. Intermediate districts and other cooperative entities will also be entitled to this aid stream.

How will this impact me?

Districts can use this funding to hire new positions or maintain or expand existing ones. Educators know the student mental health crisis is one that needs immediate attention, and this funding means teachers and ESPs can direct their focus on their classrooms and have the trained staff in their buildings to best support students’ physical and mental health.

Funding in support of teachers of color, expanding the teaching workforce

The education bill includes grants to support Indigenous people working to become licensed teachers, hiring bonuses to educators at Tier 2-4 licenses, grants for higher education institutions with plans to support completion and licensure attainment for educators of color, and grants to induct, mentor, and retain Tier 2 or 3 teachers who are of color or American Indian, and Tier 2 or 3 teachers in licensure shortage areas.

How will this impact me?

Minnesota needs more educators, and we specifically need a workforce that better reflects the diversity of our student population. Studies show that one of the most efficient ways to address racial disparities is to support a diverse educational workforce. These grants will also increase the educator workforce as a whole, meaning potentially smaller class sizes and more support for current staff.

Operating capital revenue

Additional state aid is provided via operating capital revenue to allow for districts to purchase both menstrual products for students and opiate antagonists such as nasal naloxone.

How will this impact me?

By having products available that make students more comfortable and safer in schools, educators are better able to focus on teaching and learning.

Expanded voluntary pre-kindergarten seats

Beginning in 2024, 4,000 existing voluntary pre-kindergarten (VPK) and School Readiness Plus (SRP) seats will become permanently funded. The bill also adds another 5,200 VPK/SRP seats for fiscal years 2026 and later resulting in a total of 12,360 VPK/SRP seats funded.

How will this impact me?

Giving more children access to pre-kindergarten and school readiness programs means students will come into our K-12 school system more prepared and ready to learn on Day One. Educators will be able to hit the ground running with curriculum.


Statutory changes significantly alter the professional development requirements for teachers of reading. The new law also financially encourages districts to use evidence-based reading curriculum. Districts must also do more comprehensive screenings for dyslexia. Districts may receive reimbursement for adopting reading curriculum from MDE’s approved list of evidence-based reading curriculum that meet the requirements of the READ Act.

How will this impact me?

Local unions should prepare to bargain time and supports for the staff required to complete the trainings. Locals should also track the reimbursement districts receive for curriculum, as this will increase the amount of revenue available in a district’s general education fund which can be spent in other ways to directly impact educators. Finally, locals should bargain over who will be responsible for screening students for dyslexia as well as the supports those members will need.

Earned Sick and Safe Time

This language requires that employers permit employees to accrue no less than 48 hours per year to be used for sick leave, leave for care of relatives, leave relating to weather or public health emergencies, and leave necessary to ensure one’s personal safety in the event of domestic abuse, sexual assault, or intimate-partner stalking.

How will this impact me?

While this may not result in more leave for educators as it is less than what is available in most contracts, it will be necessary for virtually every bargaining unit to ensure that the categories of emergency for which their leave allotments are available includes safety-related reasons.

Paid Family Medical Leave

Paid Family Medical Leave is a policy that will enable Minnesota to allow nearly all employees to access paid leave in the event of a serious health condition, a pregnancy, or the need to care for a relative. The legislation breaks benefits into two categories: 1) medical leave, including for pregnancy or recovery from childbirth, and 2) all other kinds of leave, that is parental leave, safety leave, caregiving leave, and deployment-related leave. Workers can receive up to 12 weeks of leave in each of the two categories per benefit year. Workers who need leave from both categories can take up to 20 weeks total in a benefit year.

How will this impact me?

Starting Jan. 1, 2026, educators will have access to comprehensive leave in order to support themselves and their families, which most contracts currently do not have.

Universal meals

A dedicated funding source for providing breakfast and lunch for all students.

How will this impact me?

This will cure headaches for school districts that have to chase down families to pay balances, cut down on paperwork, and most importantly promote student well-being. We all know hungry students can’t learn.

Higher Education

The bill appropriates $122 million for Minnesota State stabilization, which will help address college and university campus budgetary needs; $75 million for a tuition freeze; $50 million of one-time funding in FY2024 for campus support; and the North Star Promise, which awards scholarships to eligible students in an amount not to exceed 100% of tuition and fees. Eligibility for the scholarship includes completing the FAFSA, has a family adjusted gross income below $80,000, has not earned a baccalaureate degree and is enrolled in at least one credit per semester.

How will this impact me?

The bill affects not only our Minnesota State College Faculty members and their daily lives in their classrooms, but any educator who is attending or has family attending a Minnesota State college or could qualify for the North Star Promise scholarships.

ESP support

ESPs will now have access to paid training, paid e-learning days and unemployment insurance.

How will this impact me?

More professional and financial support for ESPs means better recruitment and retention of the important unlicensed staff our schools need.

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