SF1078

Purpose

• To increase funding for pupil transportation by adjusting the transportation sparsity revenue and aligning charter school transportation adjustments with the district per-pupil unit adjustment. The goal is to provide more support to districts with higher transportation costs and to specific transportation programs.

Main Provisions

• Statutory change location: Amends Minnesota Statutes 2024 section 126C.10 subdivision 18a (Pupil transportation adjustment).

• Independent districts funding change:

  • The transportation sparsity revenue for independent common or special school districts under subdivision 18 is increased by the greater of zero or a share of the difference between two amounts:
  • The district’s total cost for regular and excess pupil transportation (as defined in section 123B.92, subdivision 1, paragraph b, including depreciation for the previous fiscal year), and
  • A reference amount: the lesser of that total cost and 105 percent of the district’s total cost for the second previous fiscal year.
  • This difference is multiplied by a percentage described in the bill (the text indicates a range that appears as “35 70 percent,” suggesting a substantial shared boost, though the exact figure depends on the final bill language).
  • The resulting increase is then related to a sum of specific components to determine the final sparsity adjustment:
  • 4.66 percent of the district’s basic revenue for the previous fiscal year
  • Transportation sparsity revenue under subdivision 18 for the previous fiscal year
  • The district’s charter school transportation adjustment for the previous fiscal year
  • The district’s reimbursement for transportation provided under section 123B.92 subdivision 1, paragraph b, clause 1, item vi
  • The district’s area learning center transportation aid under section 123B.92 subdivision 1

• Charter school provision:

  • A charter school's pupil transportation adjustment is set to be equal to the school district’s per-pupil unit adjustment under the referenced paragraph a. In short, charter schools receive a transportation adjustment that mirrors the district’s per-pupil unit adjustment.

Significant Changes to Existing Law

• Reworks how transportation sparsity revenue is calculated for independent districts by tying a portion of the adjustment to the difference between district transportation costs and a benchmark, with depreciation considered and using prior-year and second-previous-year cost figures.
• Integrates several related transportation funding components (basic revenue, prior-year sparsity revenue, charter school adjustments, reimbursements, and area learning center transportation aid) into the calculation.
• Expands or standardizes the treatment of charter schools by linking their transportation adjustment to the district’s per-pupil unit adjustment, effectively aligning charter school funding with district funding logic.

Key Terms This Bill Uses (and Related Concepts)

• pupil transportation adjustment
• transportation sparsity revenue
• independent common or special school districts
• regular and excess pupil transportation
• depreciation (for the previous year)
• fourth-year reference: second previous fiscal year
• per pupil unit adjustment
• charter schools transportation adjustment
• area learning center transportation aid
• reimbursement for transportation (section 123B.92, subdivision 1, paragraph b, clause 1 item vi)

Relevant Terms - pupil transportation adjustment - transportation sparsity revenue - independent school districts - charter schools - regular and excess pupil transportation - depreciation - per pupil unit adjustment - area learning center transportation aid - reimbursement for transportation