What’s happening: Lawmakers have until May 19 to pass a budget—against the backdrop of both a looming state budget shortfall and saber rattling federal threats.

We want to provide a quick digest of the key items likely to impact your school dollars, plus a look at priorities we’re watching.

Overcast stateside outlook

Despite a modest $456 million surplus heading into the next biennium, forecasters predict a whiplash $6 billion deficit two years out. Education spending is a top cost driver for that turnaround.

The governor has proposed $240 million in education spending cuts, while the Senate and House have responded with net-zero changes and $40 million in additional spending, respectively.

Zoom out: At a price tag of $20 billion per biennium; these dollar amounts are on the margins of the state’s education budget. Even so, districts statewide are already having to slash budgets. Small increases feel like cuts against rising costs.

We’re waiting on a final education funding bill from the House that could come any day; members advanced a placeholder bill so negotiations could draw on a little longer. With the chamber split 50/50 the House bill must be bipartisan, so it’s likely to most resemble the bill that finally passes.

All that said, don’t expect a dramatic shift in Minnesota education funding… unless federal dollars dry up.

Federal fog from DC

The Trump administration is seeking to halt school learning programs that emphasize diversity, equity, inclusion, and accessibility (DEIA)—urging states to comply or risk losing federal education funding.

Why it matters: The feds cover 10% of Minnesota’s education budget. Schools and districts already squeezed by rising costs would notice losing a big slice of that pie.

But the administration lacks authority here. Attaching strings to federal funding requires Congress’ say-so (which they do not have) and must follow a strict legal process (which they have not done).

What’s more, the administration’s argument that DEIA violates civil rights law—that it amounts to a sort of reverse discrimination—has not held up in court.

So we’re good then? Unfortunately no. The administration has adopted a “shoot first, ask questions later” approach (forgive the expression), overstepping its authority in hopes no one stops them or that the courts grant them retroactive permission.

Even a temporary disruption to education funding could leave cash-strapped schools to foot the bill—and students to pay the price.

What we’re watching

Amidst all this, EE has a few policy priorities in the hopper. Most cost little or nothing at all, which could make them layups; easy things to pass alongside more contentious line items. But there’s still a risk they lose out to squeakier wheels demanding grease.

Our eyes are on (among other things):

• Heritage language licensure pathways: A successful program created in 2023 that’s already paying off with dozens of talented teachers earning their license. The pathway program serves as a cost-effective, hopeful model for licensure shortage areas.
• Licensure via portfolio: Continued investment to maintain a viable, accessible alternative pathway to teacher licensure.
• Teacher apprenticeships: Funding that would enable on-the-job teacher training embedded in innovative school environments.
• Flexibility for student instructional hours: A simple statutory definition that would clarify and encourage student learning that takes place outside the four walls of a traditional classroom.
• Protecting inclusive, inquiry-based social studies: We spoke out, alongside dozens of students, in defense of Ethnic Studies and academic standards informed by the latest research.