Cooperative says law amendment needed so alternative-learning co-ops receive full funding

The executive director of a southern Minnesota cooperative told the House Education Finance Committee that statutory language causes some resident districts to withhold up to 10 percent of state funding intended for alternative learning centers (ALCs) run by cooperatives, and he asked lawmakers to fix the wording so cooperatives receive the full intended amount.

Dan Armergast, executive director of the Southern Minnesota Education Consortium, told the committee House File 2,534 would remove ambiguous language that currently requires a resident district to pay tuition "at least 90 percent and no more than 100 percent of the district's average general education revenue per pupil unit," which he said has led some resident districts to bill and withhold 10 percent where cooperatives provide services. Armergast said the intent of existing MDE guidance is for the serving entity to bill tuition equal to the full eligible amount; the bill would strike the 90 percent language and clarify that the serving entity receives 100 percent of eligible funding.

Armergast said the change would not increase total funding but would ensure the revenue flows to the entity that serves the student. He described ALC students as at-risk learners with higher needs — many qualify for free and reduced-price meals, face housing instability, chemical dependency, or other challenges — and said his consortium's ALC will graduate a larger class this spring than some member districts. He asked the committee to support statutory clarification so funds follow students to the serving cooperative.

Representative Bennett and committee members thanked Armergast for the testimony and laid House File 2,534 over for possible inclusion in an omnibus bill.

Witness: Dan Armergast (Southern Minnesota Education Consortium).