1.1 A bill for an act
1.2 relating to education finance; increasing the minimum share of general education
1.3 funding transferred to an area learning center; amending Minnesota Statutes 2024,
1.4 sections 123A.05, subdivision 2; 127A.47, subdivision 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 123A.05, subdivision 2, is amended to read:
1.7 Subd. 2.Reserve revenue.Each district that is a member of an area learning center or
1.8alternative learning program must reserve revenue in an amount equal to the sum of (1) at
1.9least 90 and no more than 100 percent of the district average general education revenue per
1.10adjusted pupil unit minus an amount equal to the product of the formula allowance according
1.11to section 126C.10, subdivision 2, times .0466, calculated without basic skills revenue, local
1.12optional revenue, and transportation sparsity revenue, times the number of pupil units
1.13attending an area learning center or alternative learning program under this section, plus
1.14(2) the amount of basic skills revenue generated by pupils attending the area learning center
1.15or alternative learning program. The amount of reserved revenue under this subdivision
1.16may only be spent on program costs associated with the area learning center or alternative
1.17learning program.
1.18 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.
1.19 Sec. 2. Minnesota Statutes 2024, section 127A.47, subdivision 7, is amended to read:
1.20 Subd. 7.Alternative attendance programs.(a) The general education aid and special
1.21education aid for districts must be adjusted for each pupil attending a nonresident district
1Sec. 2.
REVISOR CR/VJ 25-0485703/11/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2534
NINETY-FOURTH SESSION
Authored by Bennett, Mueller and Quam03/20/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
2.2must be made according to this subdivision.
2.3 (b) For purposes of this subdivision, the "unreimbursed cost of providing special
2.4education and services" means the difference between: (1) the actual cost of providing
2.5special instruction and services, including special transportation and unreimbursed building
2.6lease and debt service costs for facilities used primarily for special education, for a pupil
2.7with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51,
2.8who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special
2.9instruction and services outside the regular classroom for more than 60 percent of the school
2.10day, the amount of general education revenue, excluding local optional revenue, plus local
2.11optional aid and referendum equalization aid as defined in section 125A.11, subdivision 1,
2.12paragraph (d), attributable to that pupil for the portion of time the pupil receives special
2.13instruction and services outside of the regular classroom, excluding portions attributable to
2.14district and school administration, district support services, operations and maintenance,
2.15capital expenditures, and pupil transportation, minus (3) special education aid under section
2.16125A.76, excluding cross subsidy reduction aid under section 125A.76, subdivision 2e,
2.17attributable to that pupil, that is received by the district providing special instruction and
2.18services. For purposes of this paragraph, general education revenue and referendum
2.19equalization aid attributable to a pupil must be calculated using the serving district's average
2.20general education revenue and referendum equalization aid per adjusted pupil unit.
2.21 (c) For fiscal year 2020, special education aid paid to a resident district must be reduced
2.22by an amount equal to 85 percent of the unreimbursed cost of providing special education
2.23and services. For fiscal year 2021 and later, special education aid paid to a resident district
2.24must be reduced by an amount equal to 80 percent of the unreimbursed cost of providing
2.25special education and services.
2.26 (d) Notwithstanding paragraph (c), special education aid paid to a resident district must
2.27be reduced by an amount equal to 100 percent of the unreimbursed cost of special education
2.28and services provided to students at an intermediate district, cooperative, or charter school
2.29where the percent of students eligible for special education services is at least 70 percent
2.30of the charter school's total enrollment.
2.31 (e) Notwithstanding paragraph (c), special education aid paid to a resident district must
2.32be reduced under paragraph (d) for students at a charter school receiving special education
2.33aid under section 124E.21, subdivision 3, calculated as if the charter school received special
2.34education aid under section 124E.21, subdivision 1.
2Sec. 2.
REVISOR CR/VJ 25-0485703/11/25 3.1 (f) Special education aid paid to the district or cooperative providing special instruction
3.2and services for the pupil, or to the fiscal agent district for a cooperative, must be increased
3.3by the amount of the reduction in the aid paid to the resident district under paragraphs (c)
3.4and (d). If the resident district's special education aid is insufficient to make the full
3.5adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be made to
3.6other state aids due to the district.
3.7 (g) Notwithstanding paragraph (a), general education aid paid to the resident district of
3.8a nonspecial education student for whom an eligible special education charter school receives
3.9general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced
3.10by an amount equal to the difference between the general education aid attributable to the
3.11student under section 124E.20, subdivision 1, paragraph (c), and the general education aid
3.12that the student would have generated for the charter school under section 124E.20,
3.13subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial education student"
3.14means a student who does not meet the definition of pupil with a disability as defined in
3.15section 125A.02 or the definition of a pupil in section 125A.51.
3.16 (h) An area learning center operated by a service cooperative, intermediate district,
3.17education district, or a joint powers cooperative may elect through the action of the
3.18constituent boards to charge the resident district tuition for pupils rather than to have the
3.19general education revenue paid to a fiscal agent school district. Except as provided in
3.20paragraph (f), the district of residence must pay tuition equal to at least 90 and no more than
3.21100 percent of the district average general education revenue per pupil unit minus an amount
3.22equal to the product of the formula allowance according to section 126C.10, subdivision 2,
3.23times .0466, calculated without compensatory revenue, local optional revenue, and
3.24transportation sparsity revenue, times the number of pupil units for pupils attending the area
3.25learning center.
3.26 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.
3Sec. 2.
REVISOR CR/VJ 25-0485703/11/25