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, section 124E.21, subdivision 1, by deleting the previous fiscal year stipulations and inserting new percentages for aid adjustments. For fiscal year 2026 and beyond, the bill establishes that the aid adjustment for charter schools will be 50% of the unreimbursed costs for students qualifying under specific criteria, while for other students, it will be 40% for fiscal year 2026.

Additionally, the bill amends section 127A.47, subdivision 7, to clarify the calculations for special education aid reductions for resident districts. It deletes the previous requirement for an 85% reduction for fiscal year 2020 and later, replacing it with a tiered reduction structure: 80% through fiscal year 2025 and 50% for charter school students starting in fiscal year 2026. The bill also includes appropriations for special education aid from the general fund to the Department of Education, ensuring that the necessary funding is allocated to support these changes. Overall, the bill seeks to enhance the financial support for charter schools while adjusting the responsibilities of resident districts in funding special education services.

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