Minnesota House approves education finance bill prioritizing school funding and flexibility

The Minnesota House convened on May 16, 2025, to discuss and ultimately pass House File 2433, an education finance bill aimed at addressing the funding needs of K-12 schools across the state. The meeting began with Representative Joakim moving to remove the bill from the table, which was approved without debate, allowing for its third reading.

During the discussion, Representative Joakim emphasized the collaborative effort that went into crafting the bill, acknowledging the contributions of various members and staff. The bill reflects a compromise necessary to secure funding for schools, with a target of $40 million allocated for the first biennium, primarily directed towards the Reid Act. Joakim noted the importance of maintaining flexibility in funding streams while ensuring that the integrity of the intended uses for these funds is preserved.

Key provisions of the bill include linking the general education formula to inflation, which aims to provide stability for school districts. Additionally, the bill includes ongoing flexibility in basic supplemental aid, allowing districts to cover costs more effectively. However, a significant point of contention arose regarding the removal of unemployment insurance provisions for school hourly workers, which Joakim expressed disappointment over but remained hopeful for resolution in the conference committee.

Representative Kreisha, co-chair of the committee, echoed Joakim's sentiments about the collaborative nature of the process and highlighted the need for continued discussions on compensatory aid. Several representatives voiced concerns about the adequacy of funding and the impact of cuts on specific districts, particularly those facing significant losses in compensatory aid.

The meeting also addressed the importance of local control for school districts, with several members advocating for the removal of constraints that hinder their ability to allocate resources effectively. The discussion underscored the challenges faced by schools in light of budget constraints and the need for a more strategic approach to funding that prioritizes student success.

As the meeting concluded, members expressed a commitment to working together to refine the bill further in the upcoming conference committee, with hopes of addressing the various concerns raised during the discussions. The passage of HF2433 marks a significant step in Minnesota's ongoing efforts to enhance educational funding and support for its schools.