During the special session, lawmakers enacted a comprehensive E-12 education finance and policy package that maintained forecasted funding levels for FY 2026–27 but implemented reductions in projected spending in the FY 2028–29 “tails” budget. While the final bill preserved inflationary adjustments to the general education formula in the near term, it did not fully resolve long-standing funding inequities affecting school districts.

Key decisions included:

• Avoiding cuts to nonpublic school aids, as previously stated by GOP leaders.
• Maintaining Unemployment Insurance funding for schools, with no sunset provision included in the final bill.
• Making adjustments to education funding growth in future years, increasing pressure on districts facing rising costs related to special education, transportation, and staffing.
  As a result, many school districts continue to face structural funding challenges and are expected to rely on local operating levies to address ongoing budget gaps. SAFF remains focused on advancing levy equalization and property tax relief solutions to improve fairness and sustainability in Minnesota’s school finance system.

SAFF will continue to monitor implementation impacts and advocate for reforms that reduce reliance on local property taxes while ensuring stable, equitable funding for all Minnesota students.