This bill aims to amend Minnesota's education finance laws by reducing the financial burden on resident school districts regarding unreimbursed special education aid paid to charter schools. Specifically, it modifies the existing provisions in Minnesota Statutes 2024, sections 124E.21 and 127A.47. The bill eliminates the previous requirement that special education aid adjustments be made starting from fiscal year 2020 and introduces a new structure for aid adjustments based on the fiscal year. For fiscal years 2026 and later, the bill stipulates that the aid paid to resident districts will be reduced by 50% of the unreimbursed costs for special education services provided to students enrolled in charter schools, while maintaining an 80% reduction for all other pupils served outside the resident district.

Additionally, the bill appropriates funds for special education aid, ensuring that the Department of Education receives the necessary financial support for these adjustments. The changes are designed to increase the state’s share of special education aid for charter schools, thereby alleviating some of the financial pressures on resident districts. The effective date for these amendments is set for fiscal year 2026 and beyond, indicating a future implementation of these changes to support charter schools and their special education funding needs.

Statutes affected:
Introduction: 124E.21, 127A.47