Agenda - Council - 07/12/2022 - Laserfiche WebLink

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The bill also sets forth the appropriations necessary to implement the proposed programs. It is estimated that the programs will cost$125 million in 2022-23, and$127 million in 2024-25,with much of this cost being focused on student transportation outside of existing district boundaries. It is not clear whether this legislation will be adopted by the Minnesota legislature. It is also not clear how it will impact charter schools. It is anticipated that charters that are identified as racially segregated will be required to provide a plan to their authorizers detailing steps the school proposes taking to reduce segregation. However, it is not clear whether any of the appropriated funds for this program will be made available to charter schools to utilize for this purpose. In the meantime,the plaintiffs,in December,2021,brought a motion for summary judgment at the District Court level for a ruling that the existing segregation constitutes a de facto violation of the Education Clause of the Minnesota Constitution. The District Court denied the motion, but certified the issue for immediate appeal to the Minnesota Supreme Court. Briefs on this issue were filed with the Minnesota Supreme Court in January 2022. No hearing is currently set, although a hearing would be anticipated at some point in the coming months. If H.F. 2471 is adopted,the litigation would become moot and the case would be dismissed. The Minnesota Supreme Court's ruling allows Cruz-Guzman, and similar cases that may be brought as a challenge to the adequacy of the Minnesota public education system,to be decided in the future by Minnesota courts. Further education reform and/or desegregation litigation in the Minnesota courts may take a long time to resolve and the outcome of any such litigation cannot be known at this time. Redemption Prior to Maturity The Series 2022 Bonds are subject to redemption at the option of the Company and in the event of certain occurrences. See"THE SERIES 2022 BONDS—Redemption of Series 2022 Bonds"in this Official Statement. Forward-Looking Statements This Official Statement contains certain statements that are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this Official Statement,including without limitation statements that use terminology such as"estimate,""plan," "budget," "expect," "intend," "anticipate," "believe," "may," "will," "continue," and similar expressions, are forward-looking statements. These forward-looking statements include, among other things, the discussions related to the Charter School's operations and expectations regarding student enrollment,future operations, revenues, capital resources, and expenditures for capital projects. Although the Company and the Charter School believe that the assumptions upon which the forward-looking statements contained in this Official Statement are based are reasonable, any of the assumptions could prove to be inaccurate and, as a result,the forward-looking statements based on those assumptions also could be incorrect. All phases of the operations of the Company and the Charter School involve risks and uncertainties, many of which are outside the control of the Company and the Charter School and any one of which, or a combination of which,could materially affect the results of the Company's or the Charter School's operations and whether the forward-looking statements ultimately prove to be correct. Factors that could cause actual results to differ from those expected include, but are not limited to, general economic conditions such as inflation and interest rates,both nationally and in Minnesota where the School Facilities are located;the willingness of the State to fund charter school operations at present or increased levels; competitive conditions within the Charter School's market, including the acceptance of the education services offered by the Charter School; lower enrollments than projected; unanticipated expenses; the capabilities of the Charter School's management; changes in government regulation of the education industry or in the Charter School Act; 36