Purpose

• Change how special education funding is allocated to charter schools by reducing the portion of unreimbursed special education costs that the resident school district pays, and increasing the state’s share of unreimbursed charter school expenditures. The bill treats charter schools more like school districts for special education aid and updates how these costs are adjusted and paid.

Main Provisions

• Special education aid arrangement

  • Special education aid, excluding cross-subsidy reduction aid, must be paid to a charter school as if the charter school were a school district.

• Adjustments based on general education revenue

  • For fiscal year 2020 and later, the amount of special education aid paid to the charter school is adjusted depending on whether the charter school receives general education revenue on behalf of the student.
  • If the charter school does not receive general education revenue for the student, the aid is adjusted under the rules in section 125A.11.
  • If the charter school does receive general education revenue for the student, the aid is adjusted under the rules in section 127A.47, subdivision 7 (paragraphs for certain adjustments).

• Additional adjustments for unreimbursed costs

  • If the tuition adjustment is computed under 127A.47, subdivision 7, paragraph c, the charter school must also receive an adjustment related to unreimbursed costs:
  • A phased-in percentage of unreimbursed costs for the student who does not qualify under a specific provision (not qualifying under 127A.47, subdivision 2, paragraph 7, clause 2) is added as follows:
    • 5% in fiscal year 2020
    • 10% in fiscal years 2021 through 2025
    • 40% in fiscal year 2026 and later
  • Additionally, 50% of the unreimbursed cost of providing special education and services for the student enrolled at a charter school qualifying under 127A.47, subdivision 7, paragraph d, clause 2, is added.

• Overall effect

  • These changes collectively shift a larger portion of unreimbursed special education costs from the resident district to the state, via charter school funding, and set upward-adjusting schedules for how much of those unreimbursed costs the state will cover over time.

Significant Changes to Existing Law

• Charter schools will receive special education aid as if they were school districts (replacing prior treatment that distinguished districts from charter schools for this aid).
• The bill introduces a phased-in, increasing state share of unreimbursed special education costs for charter schools, reducing the burden on resident districts.
• It creates specific adjustment mechanisms tied to whether general education revenue is provided for a student and ties adjustments to tuition-related computations under existing statutes (125A.11 and 127A.47).

Practical Effect (Plain Language)

• Charter schools would be funded more fully by state money for unreimbursed special education costs, rather than relying more on the local school district.
• The changes are phased in over several years, with larger shares covered by the state in later years.
• The adjustments depend on whether the student’s general education needs are funded through the charter school and on specific eligibility criteria.

Relevant Terms

• special education aid
• unreimbursed cost / unreimbursed costs
• charter school
• school district (treatment as if charter school were a district)
• general education revenue (GER) on behalf of the student
• 125A.11 (section referenced for adjustments)
• 127A.47 (section referenced for tuition and adjustments)
• tuition adjustment
• cross-subsidy reduction aid (referenced as a related concept)
• 124E.21 (statutory section being amended)
• 127A.47 subdivision 7 (specific adjustment provisions)
• 125A.76 (related cross-reference in original statute)

Relevant Terms - charter school funding - special education funding - school district burden - state share of costs - fiscal years (2020, 2021-2025, 2026+) - adjustments for students not qualifying under specific provisions - adjustments for students under specific charter school qualifications