Chapter 23: Minnesota

The Minnesota Constitution requires the state’s legislature to provide for the operation of its public elementary and secondary schools. The education clause in Article XIII, Section I of the Minnesota Constitution, states:

The Minnesota school finance system is the method by which the legislature fulfills that responsibility.

Minnesota has a bicameral legislature and a biennial budget, where the governor makes proposals to the legislature regarding the state’s operating budget in odd years, with proposed capital expenditures made in even years. As a result of state forecasts and other changes, it has become common for the Minnesota Legislature to enact annual revisions to the state’s biennial budget. These revisions are referred to as supplemental budgets. The fiscal year (FY) runs from July 1 through June 30. The state’s constitution requires Minnesota to maintain a balanced budget by the end of the budget cycle.¹ Minnesota enacted its FY 2022-23 biennial budget in June 2021. This chapter focuses on the upcoming biennium budget for fiscal years 2022-23 with references to the allocations in the previous fiscal year, FY 2021-2022. The analysis and description thus focuses on data encompassing July 1, 2021 through June 30, 2023. It reflects the summary of changes to the governor’s original general fund recommendations and includes the incorporation of the federal COVID-19 aid, with special focus on Minnesota’s American Rescue Plan in response to the federal American Rescue Plan Act.²