MN SF388

Establishes enrollment options for students at persistently low-performing schools with family income at or below 175% of federal poverty level to attend nonpublic schools or nonresident public schools, with quarterly tuition payments from the state equal to the lesser of state average general education revenue per pupil unit or the nonpublic school's operating costs.

Defines persistently low-performing schools as those with three consecutive years where over 25% of students score "does not meet standards" in reading or over 40% in mathematics on state assessments.

Modifies education tax credit to include tuition and transportation costs for qualifying children attending nonpublic schools in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin.

Creates new equity and opportunity in education tax credit allowing individuals and corporations a 100% credit for donations to qualified foundations making grants to eligible low-income students attending nonpublic schools or preschools, with maximum aggregate statewide credits of $20,000,000 per taxable year.

Reduces tuition funding payments to nonpublic schools by 40% in fiscal year 2013 and by 20% in fiscal year 2014; effective for taxable years beginning after December 31, 2011.