SF1200

Purpose

This measure clarifies how general education revenue (GER) is calculated for charter schools, treating charter schools similarly to school districts for funding calculations, and adds specific increases and adjustments related to extended-day programs and special education funding.

Main Provisions

• a) Revenue calculation for charter schools:
  • GER for a charter school is calculated as if the charter school were a district.
  • The base amount is the state average GER per adjusted pupil unit plus the referendum equalization aid allowance plus the first tier local optional aid allowance in the charter school’s district of residence.
  • From that base, subtract an amount equal to the product of the formula allowance (as defined in statute) times 0.0466, with the calculation done without including certain revenue streams (declining enrollment revenue, local optional revenue, basic skills revenue, extended time revenue, pension adjustment revenue, transition revenue, and transportation sparsity revenue).
  • Then add back the following revenues as if the charter school were a district: declining enrollment revenue, basic skills revenue, pension adjustment revenue, and transition revenue.
• b) Extended-day/extended-week/summer programs:
  • For charter schools operating an extended day, extended week, or summer program, GER is increased by 25 percent of the statewide average extended time revenue per adjusted pupil unit.
• c) Eligible special education charter schools:
  • For an eligible special education charter school, GER equals the amount determined under (a) plus the school’s unreimbursed cost for educating students not eligible for special education services (as defined in related statute).

Significant Changes to Existing Law

• Reframes charter school funding so GER is calculated as if charter schools are district schools, incorporating district-based aids (referendum equalization and first tier local optional aid) and applying a deduction factor tied to the formula allowance, with certain revenues treated differently.
• Adds a 25 percent increase to GER for charter schools that run extended-day/week or summer programs.
• For eligible special education charter schools, increases GER by including unreimbursed costs for educating non-special-education students, expanding what counts toward GER for these schools.

What this bill aims to accomplish

• Provide a clearer and more uniform framework for how charter schools receive general education funding.
• Recognize and fund extended-day/extended-week/summer offerings for charter schools.
• Ensure special education charter schools receive funding that accounts for unreimbursed costs of educating students who are not eligible for special education services.

Changes in how funding is determined

• The calculation now mirrors district funding logic more closely, including district-level aids and adjustments, and specifies how to treat various revenue categories within the calculation.
• Introduces a targeted increase for extended-time programming.
• Expands the GER calculation for eligible SPED charters to cover unreimbursed non-SPED costs.

Potential implications to watch

• Charter schools’ GER totals could increase or decrease depending on local district profiles, the specific adjustments, and how the 0.0466 factor interacts with each district’s formula allowance.
• Extended-day/week/summer programs become more financially supported through a defined GER increase.
• The financial behavior and program planning of eligible SPED charters may shift due to the inclusion of unreimbursed costs in GER.

Relevant Terms

general education revenue; GER; charter school; adjusted pupil unit; state average general education revenue per adjusted pupil unit; referendum equalization aid; first tier local optional aid; local optional aid; formula allowance; 0.0466 factor; declining enrollment revenue; basic skills revenue; extended time revenue; extended day program; extended week program; summer program; pension adjustment revenue; transition revenue; transportation sparsity revenue; unreimbursed cost; eligible special education charter school; special education services; Minnesota Statutes 124E.20 subdivision 1; Minnesota Statutes 124E.21 subdivision 2