Minnesota's Senate Bill 2002 is set to reshape how schools calculate and allocate compensatory revenue, a critical funding source aimed at supporting students from low-income families. Introduced on February 27, 2025, the bill proposes a dual approach to determining eligibility for free and reduced-price meals, combining direct certification with applications for educational benefits. This change aims to ensure that more students receive the support they need, potentially increasing the number of eligible children counted for funding purposes.

Key provisions of the bill include the establishment of a Compensatory Revenue Task Force, which will oversee the implementation of these changes and report on their effectiveness. Additionally, the bill mandates that at least 80% of compensatory revenue must be allocated to individual school buildings, ensuring that funds are directed where they are most needed.

The bill has sparked notable discussions among lawmakers, particularly regarding its potential impact on school funding equity. Proponents argue that it will enhance access to essential resources for disadvantaged students, while critics express concerns about the administrative burden it may place on school districts and the accuracy of data collection.

As Minnesota grapples with educational disparities, the implications of Senate Bill 2002 could be significant. Experts suggest that if passed, the bill could lead to increased funding for schools serving high numbers of low-income students, ultimately aiming to improve educational outcomes across the state. The bill is currently under review by the Education Finance Committee, with further debates expected as it moves through the legislative process.