This bill, S.F. No. 2303, relates to education finance and specifically provides an adjustment for Independent School District No. 186 (Pequot Lakes) due to conflicting Postsecondary Enrollment Options (PSEO) information.

Key Provisions:

1. Appropriation for PSEO Adjustment

   • The bill appropriates funds from the general fund to the Minnesota Department of Education for fiscal year 2026.

2. Calculation of Aid Adjustment

   • The Department of Education must calculate the reduction in general education aid for the Pequot Lakes school district due to PSEO students enrolling in both a postsecondary institution and their high school, exceeding a 1.0 pupil average daily membership limit in fiscal years 2024 and 2025.

3. Reimbursement in Fiscal Year 2026

   • The full amount of the calculated reduction must be reimbursed to the Pequot Lakes school district in fiscal year 2026.

Purpose of the Bill:

This bill ensures that Pequot Lakes school district is compensated for funding discrepancies caused by conflicting PSEO information, which led to unintended reductions in state aid for the district.