S.F. No. 3807 Summary

• Changes the fiscal year baseline for special education aid calculations from 2015 to 2019 and establishes a phased-in state payment system for unreimbursed special education costs.

• Creates subdivision 7a requiring resident districts to bear 80 percent of unreimbursed special education costs in fiscal year 2019, declining by 10 percent annually to 40 percent by fiscal year 2023 and later.

• Establishes subdivision 7b requiring the state to pay 10 percent of unreimbursed costs in fiscal year 2019, increasing by 10 percent annually to 50 percent by fiscal year 2023 and later, with additional 10 percent payment for specialized providers serving 70+ percent special education students.

• Amends the general education and special education tuition reimbursement aid appropriation statute to include the new subdivision 7b payments in annual appropriations from the general fund.

• Requires the commissioner of education to submit an annual report by January 15 to legislative committees detailing unreimbursed tuition paid to serving districts and recommendations for reducing unreimbursed special education costs.