SF1078 (Legislative Session 94 (2025-2026))
Funding increase for pupil transportation
Related bill: HF52
AI Generated Summary
Purpose
- To increase funding for pupil transportation by adjusting the transportation sparsity revenue and aligning charter school transportation adjustments with the district per-pupil unit adjustment. The goal is to provide more support to districts with higher transportation costs and to specific transportation programs.
Main Provisions
Statutory change location: Amends Minnesota Statutes 2024 section 126C.10 subdivision 18a (Pupil transportation adjustment).
Independent districts funding change:
- The transportation sparsity revenue for independent common or special school districts under subdivision 18 is increased by the greater of zero or a share of the difference between two amounts:
- The district’s total cost for regular and excess pupil transportation (as defined in section 123B.92, subdivision 1, paragraph b, including depreciation for the previous fiscal year), and
- A reference amount: the lesser of that total cost and 105 percent of the district’s total cost for the second previous fiscal year.
- This difference is multiplied by a percentage described in the bill (the text indicates a range that appears as “35 70 percent,” suggesting a substantial shared boost, though the exact figure depends on the final bill language).
- The resulting increase is then related to a sum of specific components to determine the final sparsity adjustment:
- 4.66 percent of the district’s basic revenue for the previous fiscal year
- Transportation sparsity revenue under subdivision 18 for the previous fiscal year
- The district’s charter school transportation adjustment for the previous fiscal year
- The district’s reimbursement for transportation provided under section 123B.92 subdivision 1, paragraph b, clause 1, item vi
- The district’s area learning center transportation aid under section 123B.92 subdivision 1
Charter school provision:
- A charter school's pupil transportation adjustment is set to be equal to the school district’s per-pupil unit adjustment under the referenced paragraph a. In short, charter schools receive a transportation adjustment that mirrors the district’s per-pupil unit adjustment.
Significant Changes to Existing Law
- Reworks how transportation sparsity revenue is calculated for independent districts by tying a portion of the adjustment to the difference between district transportation costs and a benchmark, with depreciation considered and using prior-year and second-previous-year cost figures.
- Integrates several related transportation funding components (basic revenue, prior-year sparsity revenue, charter school adjustments, reimbursements, and area learning center transportation aid) into the calculation.
- Expands or standardizes the treatment of charter schools by linking their transportation adjustment to the district’s per-pupil unit adjustment, effectively aligning charter school funding with district funding logic.
Key Terms This Bill Uses (and Related Concepts)
- pupil transportation adjustment
- transportation sparsity revenue
- independent common or special school districts
- regular and excess pupil transportation
- depreciation (for the previous year)
- fourth-year reference: second previous fiscal year
- per pupil unit adjustment
- charter schools transportation adjustment
- area learning center transportation aid
- reimbursement for transportation (section 123B.92, subdivision 1, paragraph b, clause 1 item vi)
Relevant Terms - pupil transportation adjustment - transportation sparsity revenue - independent school districts - charter schools - regular and excess pupil transportation - depreciation - per pupil unit adjustment - area learning center transportation aid - reimbursement for transportation
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 06, 2025 | Senate | Action | Introduction and first reading | ||
| February 06, 2025 | Senate | Action | Referred to | Education Finance |
Citations
[
{
"analysis": {
"added": [
"A revised computation for the pupil transportation adjustment under subdivision 18a, including use of depreciation in costs and alternative baselines and references to various revenue components."
],
"removed": [
"No explicit removals of other statutes are stated; the provision replaces Subdivision 18a with updated language."
],
"summary": "This bill amends Minnesota Statutes 2024 section 126C.10, subdivision 18a, to adjust the pupil transportation adjustment for independent common and special school districts. The change describes a calculation that increases transportation sparsity revenue based on a percentage of the difference between district transportation costs and specified baselines, and ties the adjustment to other transportation funding components referenced in related sections.",
"modified": [
"Subdivision 18a is amended to implement a new formula for the pupil transportation adjustment, aligning it with related transportation funding provisions in 123B.92 and charter school adjustments."
]
},
"citation": "126C.10",
"subdivision": "18a"
},
{
"analysis": {
"added": [
"No new law created; references to existing 123B.92 provisions for transportation costs and reimbursements are used in calculating the transportation adjustment."
],
"removed": [],
"summary": "This statute is referenced in the bill for purposes of calculating the district costs and reimbursements that feed into the pupil transportation adjustment in 126C.10 subdivision 18a, including transportation provided by charter schools and area learning center transportation aid.",
"modified": [
"Text relies on existing 123B.92, subdivision 1, paragraph b, including clause 1 and items v and vi, as components of funding calculations related to pupil transportation."
]
},
"citation": "123B.92",
"subdivision": "1; paragraph b; clause 1; items v and vi"
}
]Progress through the legislative process
In Committee