Purpose

• To modify how compensatory education revenue is calculated and distributed to school districts, in response to changes in the federal Supplemental Nutrition Assistance Program (SNAP). The bill also adjusts revenue flows when districts work with alternative programs or area learning centers, and sets up new formulas and safeguards tied to SNAP-related changes.

Main Provisions and what the bill seeks to accomplish

• Building-level compensatory education revenue formula (short-term: fiscal years 2024–2026)
  • For each school building, compensatory revenue equals the formula allowance minus 839 times the compensation revenue pupil units (per the current law formula for calculating compensatory revenue).
• Building-level compensatory education revenue formula (long-term: fiscal year 2027 and later)
  • For each building, compensatory revenue equals:
  • the number of compensatory pupils
  • multiplied by the building's compensatory allowance
  • multiplied by the statewide compensatory SNAP adjustment factor
• Revenue flows when programs change
  • If a district contracts with an alternative program (under a related state law) and the contract changes before the school year starts, the compensatory revenue generated by affected pupils goes to the new (current) contracting district for the current year, not the prior year.
  • If the area learning center’s fiscal agent district changes before the school year starts, compensatory revenue goes to the new fiscal agent district for the current year, not the prior year.
• Floor funding guarantees
  • For 2026: if the sum of amounts calculated under the 2024–2026 method is less than 838,947,000, the commissioner must proportionally increase revenue to each building so total statewide revenue equals 838,947,000.
  • For 2027 and later: if the sum of amounts calculated under the 2027-and-later method is less than 857,152,000, the commissioner must proportionally increase revenue to each building so total statewide revenue equals 857,152,000.
• Statewide compensatory SNAP adjustment factor (starting 2027)
  • The Department of Education must calculate a statewide factor used in the 2027-and-later formula.
  • This factor equals 1 plus the ratio of the compensatory loss adjustment to the total number of pupils identified through direct certification for that year.
  • Compensatory loss adjustment equals the greater of zero or the difference between:
  • the number of pupils identified through direct certification based on participation in SNAP during fall 2024, and
  • the number identified through direct certification based on participation in SNAP during the fall of the previous fiscal year.
• Definitions and terms linked to SNAP and direct certification
  • The bill uses terms like compensatory education revenue, compensatory pupils, building compensatory allowance, formula allowance, direct certification, and the Supplemental Nutrition Assistance Program (SNAP), and ties their interaction to changes in SNAP rules.

Significant changes to existing law

• Replaces the prior uncomplicated per-building calculation with a two-phase approach:
  • 2024–2026: a deduction-based calculation using a formula allowance and compensatory revenue pupil units.
  • 2027 onward: a product-based calculation using compensatory pupils, building allowances, and a new statewide SNAP adjustment factor.
• Establishes a floor (minimum) total compensatory revenue for 2026 and 2027 onward to ensure a guaranteed total amount statewide.
• Introduces a new mechanism (statewide SNAP adjustment factor) to adjust compensatory revenue based on changes in SNAP participation data (direct certification) and SNAP data from specific falls.
• Specifies revenue flow rules when districts change contracts with alternative programs or area learning centers, ensuring the current-year arrangement determines where compensatory revenue goes.
• Requires the Department of Education to compute the adjustment factor and adjust payments accordingly starting in 2027.

Administrative and implementation notes

• The Department of Education is responsible for calculating the statewide SNAP adjustment factor and for adjusting building-level payments if totals fall short of the specified floors.
• The changes affect districts, alternative program contracts, area learning centers, and the distribution of compensatory education revenue within the state.

When this takes effect

• Not specified in the provided text.

Relevant Terms - compensatory education revenue - compensatory revenue pupil units - building compensatory allowance - formula allowance - direct certification - Supplemental Nutrition Assistance Program (SNAP) - compensatory loss adjustment - statewide compensatory SNAP adjustment factor - alternative program (section 124D.69) - area learning center - fiscal agent district - current school year - prior year - Department of Education - floor amounts: 838,947,000 (FY 2026 floor) and 857,152,000 (FY 2027+ floor)