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Senate education finance committee walks through A3 omnibus; proposes delink from inflation, cuts to nonpublic aid and charter facility funding
Summary
The Minnesota Senate Committee on Education Finance reviewed the A3 omnibus amendment on April 9, outlining proposals to delink the general education formula from inflation in later years, extend school unemployment aid, change special education and English‑learner cross‑subsidy aid, and eliminate or reduce funding for several programs including nonpublic pupil aid and long‑term facilities maintenance for some charter schools.
Saint Paul — The Minnesota Senate Committee on Education Finance reviewed the A3 “delete everything” amendment to the education omnibus bill Wednesday, April 9, laying out a package of policy and budget changes that would alter school funding and several targeted education programs across the state.
The walkthrough — led by Senate fiscal staff and accompanied by Minnesota Department of Education (MDE) and Department of Children, Youth and Families (DCYF) officials — described a bill that would keep the basic formula allowance at forecasted February 2025 levels through fiscal 2026–27 but would “delink” it from inflation for fiscal years 2028 and 2029. Jenna Hofer of Senate counsel, research and fiscal analysis told the committee the A3 would leave the formula allowance at $7,705 per pupil in fiscal years 2028 and 2029 instead of applying an inflationary increase and that the change would reduce general fund spending by roughly $219.6 million in FY28 and $391.0 million in FY29 for the general education portion.
Why it matters: The basic formula allowance is the foundation for per-pupil general education revenue. Reducing or removing the automatic inflator affects many other aid lines that are calculated as a function of the formula allowance, the fiscal staff said, and prompted strong concern from both agency leaders and public witnesses.
Key provisions identified by staff and agency witnesses
- Delinking of formula inflator: The A3 would hold the formula allowance at forecasted February figures for FY26–27 and stop the automatic inflation adjustment in FY28–29, lowering projected general education spending in the 2028–29 biennium.
- Compensatory revenue hold-harmless: The amendment contains temporary hold-harmless provisions for compensatory revenue calculations in fiscal 2026 and a second-year hold-harmless element for fiscal 2027 intended to blunt estimated losses for some districts under the new compensatory aid formula.
- School unemployment aid: The A3 would provide an additional $100 million in school unemployment aid in the FY26–27 biennium and transfer some formerly general fund appropriations (Come Teach in Minnesota hiring bonuses, Grow…
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