SF1294

Purpose

• To change how charter schools in Minnesota are funded by aligning their revenue more closely with how traditional districts are funded. The bill aims to provide general education revenue and related funding elements to charter schools as if they were districts, expand funding for extended day/week or summer programs, and adjust local optional revenue for charter schools. It also adds a funding rule for eligible special education charter schools to cover unreimbursed costs for students not eligible for special education services.

Main Provisions

• General education revenue for charter schools (as if they were districts)

  • The per-pupil amount is based on the state average general education revenue per pupil unit, plus certain allowances (the referendum equalization aid allowance and the first tier local optional aid in the district of residence).
  • From this, a deduction is made equal to 4.66% of the formula allowance (calculated with certain revenue categories treated as if the charter were a district).
  • In addition, several revenue components are added back as though the charter school were a district. These components include local optional revenue, basic skills revenue, extended time revenue, pension adjustment revenue, transition revenue, and transportation sparsity revenue.

• Extended day/week or summer programs

  • For charter schools operating extended day, extended week, or summer programs, the general education revenue calculated under the above paragraph is increased by 25% of the statewide average extended time revenue per adjusted pupil unit.

• Local optional revenue aid for charter schools

  • Local optional revenue aid for a charter school equals the district’s total local optional revenue (as determined under the referenced statute) multiplied by the charter school’s adjusted pupil units for the school year.

• Special education charter schools

  • For eligible special education charter schools, general education revenue equals the amount calculated under the general rule plus the school’s unreimbursed cost for educating students not eligible for special education services (i.e., costs not reimbursed by other funding).

What this changes in law

• Treats charter schools more like traditional school districts for purposes of calculating general education revenue, incorporating district-level allowances and revenue categories into charter funding.
• Introduces a 25% boost to general education revenue for charter schools with extended day, extended week, or summer programs.
• Ties local optional revenue for charter schools to the district-level local optional revenue in which the charter is located, scaled by the charter’s adjusted pupil units.
• Expands the funding scope of eligible special education charter schools to cover unreimbursed costs for non-special-education-eligible students.

Practical implications

• Charter schools may see higher and more district-like funding levels, particularly where they have students in districts with higher referendum equalization and first-tier local optional aid.
• Programs that run beyond the standard school day or year could receive a meaningful funding boost.
• Local option revenues will be calculated with reference to district funding levels, potentially changing the amount charter schools receive compared with prior arrangements.
• Special education charter schools could receive additional funds to cover unreimbursed costs for certain students.

Relevant Terms - general education revenue - charter school - district - adjusted pupil units - state average general education revenue per pupil unit - referendum equalization aid - first tier local optional aid - local optional revenue - basic skills revenue - extended time revenue - extended day - extended week - summer program - pension adjustment revenue - transition revenue - transportation sparsity revenue - declining enrollment revenue - unreimbursed cost - special education charter school - students not eligible for special education services