The 2023 Minnesota Legislative session is scheduled to conclude and adjourn on Monday, May 22 which will include the finalized Omnibus Education Bill. The provisions included in this bill will impact our school district and determine how we can invest in our schools over the next two years. 

“We are grateful for our legislators who recognized that schools have been underfunded for two decades and worked diligently to create a plan to reinvest in our schools, hopefully this momentum continues for the next two decades,” said Superintendent Renee Corneille. “We look forward to seeing the final bill so we can assess the impact on our small school district and community.” 

For public school districts state funding is tied to student enrollment. About 70% of our general fund revenue comes from the state and is used for the operation of our schools and facilities. When we review the finalized omnibus bill, it will provide clarification on how additional funding and policy changes will alter the district’s revenue, expenditures and future financial planning. 

The items being considered in the Omnibus Education Bill also include some additional proposals including increased mandates and expenditures. These mandates potentially exceed the revenue provided by the state and put additional pressure on district finances both short- and long-term. Other key points of the bill include: 

• A general education funding formula increase of 4% for 2023-2024 and 2% for 2024- 2025.

• The general education funding formula will be linked to inflation beginning in 2025-2026, which means funding for schools will increase in future years as inflation rises.

• Funding to reduce the “special education cross subsidy,” which means that districts will need to use less general education funding to cover part of required special education costs. The current proposal reduces the cross subsidy for districts to 44% for the next three years.

We will continue to communicate these impacts to the SANB community as soon as we learn more about the bill.