In Minnesota there has been increasing concerns about how we fund special education across public schools and charter schools (this is referred to as the "cross-subsidy" problem in Minnesota). Currently, public school districts get a set amount for each student with special needs and must stay within this budget when providing services for these students. Students with special needs attending a charter school often receive more services because charter schools submit a bill to the school district to get reimbursed for the cost of providing special services. Public School Districts receive government funds for all students with special needs in the district, even those attending charter schools. The problem is that charter schools do not face a budget constraint as they submit their bill to the Public School District to get reimbursed for their special education costs. School districts often have special education costs that exceed the funds they receive to pay for these special services and are forced to use funds designated for other purposes, such as supplies, teacher development, etc. to cover their total special education expenses. How could we fix this problem of back billing and school districts with little control over what services and what spending occurs by charter schools? Think about solutions to align incentives to address budgets and to make sure students with special needs are not selecting only charter schools (i.e. fixing the selection issue)?