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Rural principals warn PSEO growth is straining small high schools; propose eligibility and funding fixes
Summary
Principals told the Senate Education Policy Committee that rapid PSEO growth and lax admission practices at some providers are straining small high schools financially and academically.
Principals from southeast and greater Minnesota testified that rising participation in Post‑Secondary Enrollment Options (PSEO) is creating financial, scheduling and academic challenges for small and rural high schools.
Concerns and evidence
- Eric Nelson, principal at Chatfield Secondary School, said PSEO enrollment has surged and that standards at some providers have fallen. He cited a 2023 Minnesota Department of Education report showing PSEO enrollment increased 6% after the pandemic and told the committee that local principals report steeper increases. Nelson said colleges' lowered admission rigor and the growth of online PSEO options have led some students to select PSEO courses that are a poor fit; he gave examples of students failing multiple college credits and said high schools often learn of problems only after final grades are posted.
- Erin Nelson (Pequot Lakes Public Schools) and Jason Berg/Kyle Christiansen (Farmington area) described significant budget impacts when funding follows the student and high schools lose funding after staffing and schedules are set. Erin Nelson said PSEO growth in several neighboring districts generated a $500,000 financial obligation for one semester in her region, and Farmington representatives said enrollment shifts and cross‑subsidies remain a major local pressure.
Policy suggestions from witnesses
- Strengthen admissions standards or limit PSEO to later high school grades (suggestions included limiting full‑time PSEO participation or restricting it to grades 11–12).
- Maintain full pupil funding to home high schools while charging a reasonable flat per‑credit fee to PSEO providers to reduce the immediate budget loss when students enroll full time in PSEO.
- Require more frequent academic status reporting from colleges to home high schools (witnesses suggested at least twice per term) so schools can intervene earlier.
Discussion versus action
Witnesses offered model fixes and requested the Legislature consider funding and accountability changes; committee members did not take immediate action at the hearing.
Ending
Principals urged targeted changes to PSEO eligibility, funding allocation and reporting so high schools — especially smaller and rural districts — can maintain local course offerings and provide appropriate supports to students taking college‑level work.
