SF1200

SF1200 (Legislative Session 94 (2025-2026))

Calculation of charter school general education revenue clarification

Related bill: HF1048

AI Generated Summary

Purpose

This measure clarifies how general education revenue (GER) is calculated for charter schools, treating charter schools similarly to school districts for funding calculations, and adds specific increases and adjustments related to extended-day programs and special education funding.

Main Provisions

a) Revenue calculation for charter schools:
- GER for a charter school is calculated as if the charter school were a district.
- The base amount is the state average GER per adjusted pupil unit plus the referendum equalization aid allowance plus the first tier local optional aid allowance in the charter school’s district of residence.
- From that base, subtract an amount equal to the product of the formula allowance (as defined in statute) times 0.0466, with the calculation done without including certain revenue streams (declining enrollment revenue, local optional revenue, basic skills revenue, extended time revenue, pension adjustment revenue, transition revenue, and transportation sparsity revenue).
- Then add back the following revenues as if the charter school were a district: declining enrollment revenue, basic skills revenue, pension adjustment revenue, and transition revenue.
b) Extended-day/extended-week/summer programs:
- For charter schools operating an extended day, extended week, or summer program, GER is increased by 25 percent of the statewide average extended time revenue per adjusted pupil unit.
c) Eligible special education charter schools:
- For an eligible special education charter school, GER equals the amount determined under (a) plus the school’s unreimbursed cost for educating students not eligible for special education services (as defined in related statute).

Significant Changes to Existing Law

Reframes charter school funding so GER is calculated as if charter schools are district schools, incorporating district-based aids (referendum equalization and first tier local optional aid) and applying a deduction factor tied to the formula allowance, with certain revenues treated differently.
Adds a 25 percent increase to GER for charter schools that run extended-day/week or summer programs.
For eligible special education charter schools, increases GER by including unreimbursed costs for educating non-special-education students, expanding what counts toward GER for these schools.

What this bill aims to accomplish

Provide a clearer and more uniform framework for how charter schools receive general education funding.
Recognize and fund extended-day/extended-week/summer offerings for charter schools.
Ensure special education charter schools receive funding that accounts for unreimbursed costs of educating students who are not eligible for special education services.

Changes in how funding is determined

The calculation now mirrors district funding logic more closely, including district-level aids and adjustments, and specifies how to treat various revenue categories within the calculation.
Introduces a targeted increase for extended-time programming.
Expands the GER calculation for eligible SPED charters to cover unreimbursed non-SPED costs.

Potential implications to watch

Charter schools’ GER totals could increase or decrease depending on local district profiles, the specific adjustments, and how the 0.0466 factor interacts with each district’s formula allowance.
Extended-day/week/summer programs become more financially supported through a defined GER increase.
The financial behavior and program planning of eligible SPED charters may shift due to the inclusion of unreimbursed costs in GER.

Relevant Terms

general education revenue; GER; charter school; adjusted pupil unit; state average general education revenue per adjusted pupil unit; referendum equalization aid; first tier local optional aid; local optional aid; formula allowance; 0.0466 factor; declining enrollment revenue; basic skills revenue; extended time revenue; extended day program; extended week program; summer program; pension adjustment revenue; transition revenue; transportation sparsity revenue; unreimbursed cost; eligible special education charter school; special education services; Minnesota Statutes 124E.20 subdivision 1; Minnesota Statutes 124E.21 subdivision 2

Bill text versions

Introduction PDF file
Introduction PDF PDF file
Introduction PDF PDF file

Actions

Date	Chamber	Type	Name	Committee Name
February 10, 2025	Senate	Action	Introduction and first reading
February 10, 2025	Senate	Action	Referred to	Education Finance
	Senate	Action	See

Citations

[
  {
    "analysis": {
      "added": [
        "In paragraph b, extends GER for charter schools operating an extended day, extended week, or summer program by 25% of statewide average extended time revenue per adjusted pupil unit.",
        "In paragraph c, for eligible special education charter schools, GER equals the base amount plus unreimbursed costs as defined in §124E.21, subdivision 2."
      ],
      "removed": [
        "The calculation is described as occurring 'calculated without' certain revenue types (declining enrollment revenue, local optional revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and transition revenue, and transportation sparsity revenue) from the base calculation, effectively removing these categories from the subtraction term."
      ],
      "summary": "The bill clarifies the calculation of charter school general education revenue under Minnesota Statutes 124E.20, subdivision 1, by defining the base GER as the state average GER per adjusted pupil unit plus the referendum equalization aid and first-tier local optional aid, then subtracting a factor based on the formula allowance in §126C.10, subdivision 2 and applying various revenue adjustments as if the charter school were a district. It also adds an extended-time adjustment and addresses special education charter schools via §124E.21.",
      "modified": [
        "Modifies how GER is calculated by treating the charter school as a district for the purpose of the GER calculation and applying the formula allowance (from §126C.10, subdivision 2) multiplied by 0.0466."
      ]
    },
    "citation": "124E.20",
    "subdivision": "Subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "No direct addition to §126C.10; the subdivision is used as the basis for the subtraction term in §124E.20, subdivision 1."
      ],
      "removed": [],
      "summary": "The bill references the formula allowance in Minnesota Statutes §126C.10, subdivision 2 as part of the charter school GER calculation in §124E.20, subdivision 1. It does not appear to amend §126C.10 itself.",
      "modified": [
        "Uses the current formula allowance from §126C.10, subdivision 2 to compute a factor (0.0466 multiplier) in the charter school GER calculation, affecting the overall revenue but not modifying §126C.10 itself."
      ]
    },
    "citation": "126C.10",
    "subdivision": "Subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Adds unreimbursed costs defined in §124E.21, subdivision 2 to the GER for eligible special education charter schools."
      ],
      "removed": [],
      "summary": "The bill expands GER for eligible special education charter schools by adding unreimbursed costs, as defined in §124E.21, subdivision 2, to the GER amount.",
      "modified": [
        "Interacts with §124E.20 subdivision 1 via paragraph c, altering the GER for certain charter schools."
      ]
    },
    "citation": "124E.21",
    "subdivision": "Subdivision 2"
  }
]

Progress through the legislative process

17%

In Committee