MN SF3173

Authorizes charter school boards to borrow money in anticipation of receiving state aids and federal school aids, with aggregate borrowing limited to 75 percent of such aids, fees, and tuition payments receivable in the fiscal year of borrowing.

Allows charter schools to issue certificates of indebtedness upon board passage of a two-thirds majority resolution specifying the amount and purposes for borrowing.

Establishes state payment mechanism for charter school debt obligations upon potential default, requiring schools to notify the commissioner at least 15 working days before payment due dates.

Creates aid reduction provisions requiring the state to reduce future state aid payments to charter schools by the amount the state pays on their behalf, plus taxable interest at the invested cash rate, with flexibility for hardship circumstances.

Requires charter schools receiving state debt payments or experiencing defaults to submit financial recovery plans to the commissioner for approval, with potential withholding of state aid if plans are inadequate.