Walz Seeks $7B Overhaul for Minnesota Schools Amid Surplus

ST. PAUL, Minn. — Gov. Tim Walz's Department of Education unveiled the Due North Education Plan on Thursday, requesting $6.9 billion to transform Minnesota's school funding formula and address longstanding inequities.[1] Education Commissioner Willie Jett told the House Education Finance Committee the initiative aims to deliver 'a high-quality education, no matter their race or zip code.' The proposal hikes the general education basic formula by 4% in the 2024-25 biennium and 2% in 2026-27, tying future increases to the Consumer Price Index up to 3% starting fiscal year 2026, totaling $716.7 million now and $1.4 billion later.[1] A major focus is closing the special education cross-subsidy gap, where districts divert $750 million annually from general funds to cover shortfalls.[2] Walz's plan cuts this gap by 50%, injecting $772.6 million in 2024-25 and $849.1 million in 2026-27.[1] Additional requests include $388.4 million for 2023-25 and $424.3 million for 2026-27 in related programs, plus over $100 million for 300 new statewide positions tackling student mental, behavioral and physical health needs.[1] Priorities like English learner support, cutting its cross-subsidy by over 20% at $50 million, and summer unemployment for hourly school staff at $160 million remain in bill development.[1] This builds on Walz's 2023 'Minnesota Miracle 2.0,' which boosted per-pupil funding from $6,863 to $7,281 by 2025, added 10% or $2.3 billion to the K-12 budget, and enacted the READ Act for literacy.[2][4] Yet districts like Minneapolis Public Schools reported scrambling, as special education offsets covered only 44% of gaps to fund other initiatives.[2][4] Education Minnesota's Denise Specht praised the stability but flagged proposals to phase out the Q Comp teacher pay program by 2027, saving $78 million.[3]