Takeaways from the 2026-27 Minnesota Governor’s Biennial Budget Recommendations for Education

What this program is

Right now, Minnesota sends state aid to public school districts to cover certain nonreligious education supports for nonpublic (private) school students who live in the district.

Districts use the aid to:

• Loan textbooks / instructional materials and cover some standardized testing costs
• Provide health services (typically nurse-related services)
• Provide guidance & counseling services (often limited/eligible categories)
• Plus 5% extra for district administration of the program

Key point: The money flows to districts, but it’s spent for the benefit of nonpublic students.

What’s changing

The Governor proposes eliminating this aid entirely starting FY 2026 — a 100% cut — and removing the district mandate to provide those materials/services through this program.

Budget impact

General Fund reductions:

• FY 2026: −$25.845M
• FY 2027: −$26.677M
• FY 2028: −$27.566M
• FY 2029: −$28.848M

So:

• FY 2026–27 total: −$52.522M
• FY 2028–29 total: −$56.414M

What it means in practice

• Districts would stop buying/loaning these materials and stop providing these services under this state program
• Nonpublic schools/families would need to find other funding sources or alternative arrangements for items/services previously supported

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2) Eliminate Nonpublic Pupil Transportation Aid (and the requirement)

What this program is

Currently, districts must generally provide equal transportation service for students attending nonpublic schools within the district, similar to public school transportation (with specific rules for out-of-district transportation, shared-time, special education transport to service sites, etc.).

The state then reimburses districts through Nonpublic Pupil Transportation Aid, based on a formula tied to:

• District transportation spending from the second prior year
• Current-year nonpublic riders
• And an adjustment tied to the formula allowance ratio

What’s changing

The Governor proposes eliminating:

1. the aid, and
2. the district requirement to provide that transportation

Starting FY 2026.

Budget impact

General Fund reductions:

• FY 2026: −$27.875M
• FY 2027: −$28.343M
• FY 2028: −$29.035M
• FY 2029: −$29.402M

So:

• FY 2026–27 total: −$56.218M
• FY 2028–29 total: −$58.437M

What it means in practice

• Districts could end nonpublic-specific routes and redesign routes around public enrollment only
• Families/nonpublic schools may need to provide transportation themselves (unless districts choose to continue voluntarily under different arrangements)

(Your excerpt even hints at this: districts could “eliminate routes dedicated for nonpublic transportation” and reroute.)

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Eliminate Nonpublic Pupil Education Aid and Transportation Aid (starting FY 2026):
The Governor proposes ending two state programs that currently reimburse districts for providing certain services to nonpublic (private) school students—nonreligious textbooks/testing materials, limited health and counseling services, and transportation. The proposal is a 100% cut beginning in FY 2026 and would also remove districts’ legal obligation to provide those services through these programs. As a result, nonpublic schools and families would need to secure other funding and transportation arrangements, while districts could reduce associated routes and administrative workload.