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SF2576 (Legislative Session 94 (2025-2026))

Building lease aid for charter school provision

AI Generated Summary

Purpose of the Bill

This bill aims to amend the existing laws governing financial assistance for charter schools in Minnesota. It focuses on building lease aid, which is financial support provided to charter schools to help them cover the costs of renting or leasing facilities necessary for instructional purposes.

Main Provisions

  • Application Process: Charter schools can apply for building lease aid when it's economically advantageous to rent or lease a facility, and when their total operating capital revenue is insufficient to cover these costs. The application process is overseen by the commissioner, who evaluates requests based on specific criteria.

  • Criteria for Aid Approval: The commissioner's decision to approve or deny aid is based on:

    1. The reasonableness of lease prices compared to current market values.
    2. The lease's compliance with state laws and rules.
    3. Whether the lease appropriately meets the space and financial needs of the school.

  • Approval Conditions: Aid is approved only for leases with a defined annual cost and a closure clause. This clause ensures that lease obligations end if a school's charter contract is terminated or not renewed.

  • Restrictions on Aid Use: Received aid cannot be used for custodial, maintenance, utility, or other operational costs.

  • Aid Calculation: The annual amount of building lease aid is set at the lesser of 90% of the approved cost or the product of pupil units served times a set dollar amount. This amount is adjusted yearly based on changes in the formula allowance.

  • Pupil Units Definition: Includes both regular student attendance and participation in Postsecondary Enrollment Options, with adjustments logged for these additional activities.

Significant Changes

  • This bill introduces a systematic method to annually adjust building lease aid amounts, aligning them with changes in the state's formula allowance. This approach ensures aid amounts better reflect annual cost fluctuations and inflation.

Relevant Terms

lease aid, charter schools, facility leasing, commissioner approval, closure clause, pupil units, Postsecondary Enrollment Options, operating costs, formula allowance adjustments.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toEducation Finance
March 19, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on the application process for lease aid."
      ],
      "removed": [
        ""
      ],
      "summary": "This section of the bill amends the building lease aid calculation for charter schools, referencing the existing operational capital revenue statute.",
      "modified": [
        "Updates conditions under which lease aid can be approved based on operational capital revenue."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 13"
  },
  {
    "analysis": {
      "added": [
        "Round calculations method aligned with financial allowances."
      ],
      "removed": [
        ""
      ],
      "summary": "This section references rounding calculations for determining building lease aid figures.",
      "modified": [
        "Adjusts how increases in the financial formula are matched for building lease aid."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Includes additional pupil units for calculation when enrolled in Postsecondary Enrollment Options Act."
      ],
      "removed": [
        ""
      ],
      "summary": "References pupil units utilized in calculating building lease aid for charter schools.",
      "modified": [
        "Modifies the calculation method of pupil units for charter schools."
      ]
    },
    "citation": "126C.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Acknowledges participation in Postsecondary Enrollment Options Act for building lease aid calculations."
      ],
      "removed": [
        ""
      ],
      "summary": "This relates to the inclusion of student enrollment data for the Postsecondary Enrollment Options Act.",
      "modified": [
        ""
      ]
    },
    "citation": "124D.09",
    "subdivision": ""
  }
]

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