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Bill

HF 3967

Average daily membership and pupil units for certain students who are not residents of Minnesota and who are enrolled in online instruction in a Minnesota school modified.

2025-2026 Regular Session Introduced by Julie Greene

HF 3967 modifies Minnesota school funding formulas to adjust how out-of-state online students count toward average daily membership and pupil units calculations.

Introduction and first reading, referred to Education Policy
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Bill Summary · HF 3967

Legislative bill overview

HF 3967 modifies how Minnesota calculates average daily membership (ADM) and pupil units for out-of-state students enrolled in online instruction through Minnesota schools. The bill adjusts the funding formula that determines state aid to schools based on student enrollment, specifically creating different treatment for non-resident students taking remote coursework.

Why is this important

School funding in Minnesota is heavily tied to average daily membership calculations, which directly affect the resources schools receive from the state. This bill could significantly impact how much money schools get when serving out-of-state online students, potentially affecting program viability and expansion decisions for virtual learning programs.

Potential points of contention

  • Funding fairness: Whether out-of-state students should receive the same or reduced per-pupil funding compared to resident students, and what this means for school budgets
  • Online education expansion: Whether adjusting ADM/pupil unit calculations discourages or encourages schools from offering online instruction to national or regional markets
  • Definition disputes: What counts as "online instruction" and whether hybrid or partially-remote models are included in these calculations
  • Interstate implications: Whether this affects reciprocal agreements with other states or creates competitive disadvantages for Minnesota schools in the national online education market

Compiled from official sources — confirm details with the bill’s official record.

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