Some legislators want to scrap the Perpich Center for Arts Education, leaving the struggling high school and middle school operated by the center in limbo.
Republicans in the House proposed closing both schools after a scathing legislative audit in January found they were wrestling with declining enrollment, a lack of oversight and low test scores.
The audit cited mismanagement and high staff turnover at Crosswinds Arts and Science, a middle school in Woodbury.
"Our fate is in the hands of the Legislature and the governor," said Ben Vander Kooi, who took over as Perpich Center board chair in January. "The next month will tell the tale of where we are at and whether we will survive."
The Senate, meanwhile, has proposed keeping open the Perpich Arts High School in Golden Valley and giving the center's governing board time to turn the state agency around while reporting annually to the Legislature.
Gov. Mark Dayton also wants to see the center and its schools remain open while the board addresses the audit's findings.
The House and Senate bills will have to make it through a conference committee.
Perpich Center, which has an annual budget of about $11 million, was established by the Legislature in 1985 as a statewide resource center for arts education. The state agency began running the Golden Valley arts high school for 11th and 12th grade students in 1989.