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SF2576 (Legislative Session 94 (2025-2026))

Building lease aid for charter school provision

AI Generated Summary

Purpose of the Bill

This bill aims to assist charter schools in Minnesota with the costs associated with leasing buildings. It modifies the current legislation to provide clearer guidelines and financial support for charter schools that find it more cost-effective to rent rather than own property for educational purposes.

Main Provisions

  • The bill allows charter schools to apply for building lease aid if their total operating capital is insufficient for covering rental costs.
  • The application for aid will be evaluated based on:
    1. The reasonableness of the rent based on market values.
    2. Compliance with state laws and regulations.
    3. The suitability of the lease concerning the school's space requirements and financial circumstances.
  • The lease must include a specific annual cost and a closure clause in case the charter contract ends. This clause cannot exempt the school from obligations incurred before the contract's termination.
  • Building lease aid cannot be used for expenses such as custodial services, maintenance, utilities, or other operating costs.

Significant Changes to Existing Law

  • The bill sets the maximum annual building lease aid at the lesser of 90% of the approved cost or a product of the pupil units times a specified rate.
  • Starting in fiscal year 2026, building lease aid will be adjusted annually based on changes to the formula allowance from the previous fiscal year.
  • The definition of "charter school's building lease aid pupil units" has been updated to include participation in the Postsecondary Enrollment Options Act.

Relevant Terms

  • Building lease aid
  • Charter schools
  • Lease obligations
  • Market values
  • Operating costs
  • Pupil units
  • Postsecondary Enrollment Options Act

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toEducation Finance
March 19, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the application process for building lease aid and criteria for approval.",
        "Specifies limits on the use of building lease aid for non-operating costs."
      ],
      "removed": [],
      "summary": "This bill updates provisions related to building lease aid for charter schools under section 124E.22.",
      "modified": [
        "Adjusts the calculation method for the building lease aid amount to include annual rounding and increase percentages."
      ]
    },
    "citation": "124E.22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute is cross-referenced to determine revenue insufficiency and increase calculations for building lease aid.",
      "modified": [
        "Links aid calculations to revenue data from section 126C.10."
      ]
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute is referenced to define pupil units for lease aid calculations.",
      "modified": [
        "Includes pupil units in calculations for charter schools participating in specific programs."
      ]
    },
    "citation": "126C.05"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute is used to include pupils participating in Postsecondary Enrollment Options in lease aid calculations.",
      "modified": [
        "Incorporates PSEO participating students into calculations of charter school pupil units."
      ]
    },
    "citation": "124D.09"
  }
]

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