This bill aims to amend the current education finance laws in Minnesota by reducing the financial burden of unreimbursed special education aid that resident school districts pay to charter schools. Specifically, it modifies the 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 charter schools will receive 50% of the unreimbursed costs for special education services for qualifying students, while the resident districts will see a reduction in special education aid paid to them, set at 50% for charter school students and 80% for other students served outside the district.

Additionally, the bill amends Minnesota Statutes 2024, section 127A.47, subdivision 7, to clarify the definitions and calculations related to unreimbursed costs of providing special education services. It also includes provisions for appropriations to the Department of Education for special education aid, ensuring that the necessary funding is allocated to support these changes. The effective date for these amendments is set for fiscal year 2026 and later, indicating a future implementation of these financial adjustments.

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