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Bill

SF 3708

Average daily membership and pupil units modification for certain students who are not residents of Minnesota and who are enrolled in online instruction in a Minnesota school

2025-2026 Regular Session Introduced by Alice Mann

Adjusts Minnesota school funding calculations for non-resident students in online programs to modify state education budget allocations based on revised membership metrics.

Referred to Education Policy
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Bill Summary · SF 3708

Legislative bill overview

SF 3708 modifies how Minnesota calculates school funding for non-resident students enrolled in online instruction at Minnesota schools. The bill adjusts the average daily membership (ADM) and pupil unit calculations—metrics that determine state education funding allocations—specifically for out-of-state students taking courses remotely from Minnesota-based schools.

Why is this important

School funding in Minnesota is heavily tied to student enrollment numbers, so changes to how students are counted directly affect district budgets and resources. This bill addresses a potential funding loophole where online programs could attract non-resident students without the district bearing typical infrastructure costs, while still receiving full per-pupil funding. The outcome will influence whether schools can sustainably expand online programs and whether funding formulas accurately reflect actual educational service costs.

Potential points of contention

  • Funding fairness: Schools argue they provide legitimate educational services to out-of-state students and should receive proportional funding; opponents contend Minnesota taxpayers shouldn't subsidize education for non-residents
  • Online program viability: Reducing funding for non-resident online students could make virtual programs economically unviable, limiting educational access and innovation, or it could prevent schools from gaming the system
  • Definition ambiguity: The bill's language regarding "certain students" lacks specificity about which non-resident students are affected and whether the change applies retroactively to existing programs

Compiled from official sources — confirm details with the bill’s official record.

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