SF2839

Purpose of the Bill

This bill is designed to adjust how special education funding is handled for charter schools in Minnesota. It aims to reduce the burden on resident school districts for covering the costs of special education that are not reimbursed to charter schools, and instead increase the state’s financial contribution to these expenses.

Main Provisions

• Increase in State Funding: The bill proposes an increase in the state's contribution toward unreimbursed special education costs incurred by charter schools.
  
• Funding Adjustments: Adjustments to the special education aid paid to charter schools depend on whether they receive general education revenue. There are specific formulae for these adjustments, which differ based on whether the charter school receives general education revenue on behalf of the student.
• Stage-Based Implementation: The adjustments to the percentage of unreimbursed costs covered by the state are staged, starting from five percent in fiscal year 2020, increasing to ten percent through fiscal year 2025, then rising to 40 percent for fiscal year 2026 and beyond.

Significant Changes to Existing Law

• The existing statute is amended to restructure how funds are allocated to cover special education costs without extra reimbursement. The amendments clarify the percentage of costs that will be covered by the state versus what the resident district needs to support.
• Explicitly increases the state’s financial obligation to charter schools that provide special education services, ultimately decreasing the financial responsibility of resident school districts over time.

Relevant Terms

special education aid, charter schools, unreimbursed costs, state funding, resident school district, general education revenue, tuition adjustment