HF 2178

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:00am

A bill for an act
relating to education finance; appropriating money; amending Laws 2007,
chapter 147, article 2, section 62, subdivision 2; article 19, section 3, subdivision
4, as amended; proposing coding for new law in Minnesota Statutes, chapter
124D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [124D.142] QUALITY RATING AND IMPROVEMENT SYSTEM.
new text end

new text begin (a) There is established a quality rating and improvement system based on the
goal that all of Minnesota's children have access to high-quality early learning and care
programs in a range of settings that meet the needs of children and their families. Creation
of a standards-based quality rating and improvement system includes:
new text end

new text begin (1) establishing an early care and education framework that improves quality
opportunities for early learning for all of Minnesota's young children. The framework
shall be based on the Minnesota quality rating system rating tool and informed by
evaluation results;
new text end

new text begin (2) using the framework as a tool to ensure that publicly funded and regulated early
learning and care services in both public and private market programs are high quality.
The state shall establish a plan to link all future state funding to the framework; and
new text end

new text begin (3) using the framework to track progress toward statewide access to high-quality
early learning and care programs, progress toward the number of low-income children
whose parents can access quality programs, and progress in reducing the number of
children not fully prepared to enter kindergarten.
new text end

new text begin (b) In creating the quality rating and improvement system in paragraph (a), the state
shall consider the cost of administering and staffing the system and collecting assessment
and evaluation data.
new text end

new text begin (c) Prior to the creation of a statewide quality rating and improvement system in
paragraph (a), the state shall employ the Minnesota quality rating system rating tool in
use in fiscal year 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 2.

new text begin [124D.143] PREKINDERGARTEN FINANCE ALLOWANCES.
new text end

new text begin Subdivision 1. new text end

new text begin Early childhood allowance locations. new text end

new text begin In fiscal year 2010 and later,
the commissioners of human services and education shall continue three prekindergarten
exploratory projects located in the city of St. Paul, Hennepin County, and Blue Earth
County that are conducted in partnership with the Minnesota Early Learning Foundation
to promote children's school readiness. In fiscal year 2011 and later, the commissioners of
human services and education shall establish six additional prekindergarten projects to
be conducted in partnership with the Minnesota Early Learning Foundation to promote
children's school readiness. In fiscal year 2011, the additional prekindergarten project sites
shall be located in Anoka County, Olmsted County, Otter Tail County, St. Louis County,
and a consortium of Benton, Stearns, and Sherburne Counties.
new text end

new text begin Subd. 2. new text end

new text begin Allowance eligibility. new text end

new text begin Parents or legal guardians with incomes less than or
equal to 46 percent of the state median income are eligible to receive allowances to pay for
their children's education in a quality early education program, in an amount not to exceed
$4,000 per child per year. The allowance must be used during the 12 months following
receipt of the allowance by the claimant for a child who is age 3 or 4 on September 1 to
pay for services designed to promote school readiness in a quality early care and education
setting. A claimant may use the allowance to pay fees or charges associated with their
child's education in a quality early care and education setting. A quality setting is one
that meets the standards in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Quality standards. new text end

new text begin (a) A quality early care and education setting is any
service program that receives a three-star or higher quality rating from the Department of
Human Services under the Minnesota Early Learning Foundation quality rating system
administered by the Department of Human Services and agrees to accept a prekindergarten
education allowance to pay for services.
new text end

new text begin (b) Until a quality rating and improvement system is established under section
124D.142, a provider may satisfy the quality rating system requirements and be deemed
eligible to participate in this program if the provider has received a provisional quality
rating system approval from either the Department of Human Services or the Department
of Education.
new text end

new text begin (c) Notwithstanding paragraph (a), a quality early care and education setting is a
service program that receives a three-star or higher quality rating based on the quality
rating and improvement system established according to section 124D.142.
new text end

new text begin (d) For the purposes of receiving a provisional quality rating, a child care program or
provider must be approved by the commissioner of human services and a school-based
program or a Head Start program must be approved by the commissioner of education.
Programs and providers must apply for approval in the form and manner prescribed by the
commissioners. To receive approval, the commissioners must determine that applicants:
new text end

new text begin (1) use research-based curricula that are aligned with the education standards
under section 120B.021, instruction, and child assessment instruments approved by the
Department of Education and the Department of Human Services, in consultation with
the Minnesota Early Learning Foundation;
new text end

new text begin (2) provide a program of sufficient intensity and duration to improve the school
readiness of participating children;
new text end

new text begin (3) provide opportunities for parent involvement; and
new text end

new text begin (4) meet other research-based criteria determined necessary by the commissioners.
new text end

new text begin (e) Notwithstanding paragraph (c), for fiscal years 2010 and 2011 only, Head Start
programs meeting Head Start performance standards and accredited child care centers
are granted a provisional quality rating for the purposes of receiving a prekindergarten
allowance under this section.
new text end

new text begin (f) A provider deemed eligible to receive a prekindergarten education allowance
under paragraphs (a) to (d) may use the allowance to enhance services above the current
quality levels, increase the duration of services provided, or expand the number of children
to whom services are provided.
new text end

new text begin (g) For fiscal years 2010 and 2011 only, when no quality program is available, a
recipient may direct the prekindergarten allowance to a provider or program for school
readiness quality improvements that will make the provider or program eligible for a
quality rating according to the quality rating system. Allowable expenditures that will
increase the capacity of the provider or program to help children be ready for school
include purchase of curricula and assessment tools, training on the use of curriculum and
assessment tools, purchase of materials to improve the learning environment, or other
expenditures approved by the commissioner of human services for child care providers
and the commissioner of education for school readiness programs.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility; applications. new text end

new text begin Eligible families must have incomes less than or
equal to 46 percent of the state median income. Allowances paid to families under this
program may not be counted as earned income for the purposes of medical assistance,
MinnesotaCare, MFIP, child care assistance, or Head Start programs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Laws 2007, chapter 147, article 2, section 62, subdivision 2, is amended to read:

Subd. 2.

Family eligibility.

Parents or legal guardians with incomes less than or
equal to 185 percent of the federal poverty guidelines are eligible to receive allowances
to pay for their children's education in a quality early education program, in an amount
not to exceed $4,000 per child per year. The allowance must be used during the 12
months following receipt of the allowance by the claimant for a child who is age 3 or
4 on August 31, to pay for services designed to promote school readiness in a quality
early education setting. A quality program is one that meets the standards in subdivision
3. new text begin The Department of Human Services or the Department of Education may waive the
restriction that the allowance must be spent within 12 months to ensure that a claimant
has sufficient time to use the allowance.
new text end

Sec. 4.

Laws 2007, chapter 147, article 19, section 3, subdivision 4, as amended by
Laws 2008, chapter 277, article 5, section 1, and Laws 2008, chapter 363, article 18,
section 7, is amended to read:

Subd. 4. Children and Economic Assistance Grants

The amounts that may be spent from this
appropriation for each purpose are as follows:

(a) MFIP/DWP Grants

Appropriations by Fund
General	62,069,000	62,405,000
Federal TANF	75,904,000	80,841,000

(b) Support Services Grants

Appropriations by Fund
General	8,715,000	8,715,000
Federal TANF	113,429,000	115,902,000

TANF Prior Appropriation Cancellation.
Notwithstanding Laws 2001, First Special
Session chapter 9, article 17, section
2, subdivision 11, paragraph (b), any
unexpended TANF funds appropriated to the
commissioner to contract with the Board of
Trustees of Minnesota State Colleges and
Universities, to provide tuition waivers to
employees of health care and human service
providers that are members of qualifying
consortia operating under Minnesota
Statutes, sections 116L.10 to 116L.15, must
cancel at the end of fiscal year 2007.

MFIP Pilot Program. Of the TANF
appropriation, $100,000 in fiscal year 2008
and $750,000 in fiscal year 2009 are for a
grant to the Stearns-Benton Employment and
Training Council for the Workforce U pilot
program. Base level funding for this program
shall be $750,000 in 2010 and $0 in 2011.

Supported Work. (1) Of the TANF
appropriation, $5,468,000 in fiscal year 2008
is for supported work for MFIP participants,
to be allocated to counties and tribes based
on the criteria under clauses (2) and (3), and
is available until expended. Paid transitional
work experience and other supported
employment under this rider provides
a continuum of employment assistance,
including outreach and recruitment,
program orientation and intake, testing and
assessment, job development and marketing,
preworksite training, supported worksite
experience, job coaching, and postplacement
follow-up, in addition to extensive case
management and referral services.

(2) A county or tribe is eligible to receive an
allocation under this rider if:

(i) the county or tribe is not meeting the
federal work participation rate;

(ii) the county or tribe has participants who
are required to perform work activities under
Minnesota Statutes, chapter 256J, but are not
meeting hourly work requirements; and

(iii) the county or tribe has assessed
participants who have completed six weeks
of job search or are required to perform
work activities and are not meeting the
hourly requirements, and the county or tribe
has determined that the participant would
benefit from working in a supported work
environment.

(3) A county or tribe may also be eligible for
funds in order to contract for supplemental
hours of paid work at the participant's child's
place of education, child care location, or the
child's physical or mental health treatment
facility or office. This grant to counties and
tribes is specifically for MFIP participants
who need to work up to five hours more
per week in order to meet the hourly work
requirement, and the participant's employer
cannot or will not offer more hours to the
participant.

Work Study. Of the TANF appropriation,
$750,000 each year are to the commissioner
to contract with the Minnesota Office of
Higher Education for the biennium beginning
July 1, 2007, for work study grants under
Minnesota Statutes, section 136A.233,
specifically for low-income individuals who
receive assistance under Minnesota Statutes,
chapter 256J, and for grants to opportunities
industrialization centers. * (The preceding
text beginning "Work Study. Of the TANF
appropriation," was indicated as vetoed
by the governor.)

Integrated Service Projects. $2,500,000
in fiscal year 2008 and $2,500,000 in fiscal
year 2009 are appropriated from the TANF
fund to the commissioner to continue to
fund the existing integrated services projects
for MFIP families, and if funding allows,
additional similar projects.

Base Adjustment. The TANF base for fiscal
year 2010 is $115,902,000 and for fiscal year
2011 is $115,152,000.

(c) MFIP Child Care Assistance Grants

General

74,654,000

71,951,000

(d) Basic Sliding Fee Child Care Assistance Grants

General

42,995,000

45,008,000

Base Adjustment. The general fund base
is $44,881,000 for fiscal year 2010 and
$44,852,000 for fiscal year 2011.

At-Home Infant Care Program. No
funding shall be allocated to or spent on
the at-home infant care program under
Minnesota Statutes, section 119B.035.

(e) Child Care Development Grants

General

4,390,000

6,390,000

Prekindergarten Exploratory Projects. Of
the general fund appropriation, $2,000,000
the first year and $4,000,000 the second
year are for grants to the city of St. Paul,
Hennepin County, and Blue Earth County to
establish scholarship demonstration projects
to be conducted in partnership with the
Minnesota Early Learning Foundation to
promote children's school readiness. This
appropriation is available until deleted text begin June 30, 2009 deleted text end new text begin
expended new text end .

Child Care Services Grants. Of this
appropriation, $250,000 each year are for
the purpose of providing child care services
grants under Minnesota Statutes, section
119B.21, subdivision 5. This appropriation
is for the 2008-2009 biennium only, and does
not increase the base funding.

Early Childhood Professional
Development System. Of this appropriation,
$250,000 each year are for purposes of the
early childhood professional development
system, which increases the quality and
continuum of professional development
opportunities for child care practitioners.
This appropriation is for the 2008-2009
biennium only, and does not increase the
base funding.

Base Adjustment. The general fund base
is $1,515,000 for each of fiscal years 2010
and 2011.

(f) Child Support Enforcement Grants

General

11,038,000

3,705,000

Child Support Enforcement. $7,333,000
for fiscal year 2008 is to make grants to
counties for child support enforcement
programs to make up for the loss under the
2005 federal Deficit Reduction Act of federal
matching funds for federal incentive funds
passed on to the counties by the state.

This appropriation is available until June 30,
2009.

(g) Children's Services Grants

Appropriations by Fund
General	63,647,000	71,147,000
Health Care Access	250,000	-0-
TANF	240,000	340,000

Grants for Programs Serving Young
Parents. Of the TANF fund appropriation,
$140,000 each year is for a grant to a program
or programs that provide comprehensive
services through a private, nonprofit agency
to young parents in Hennepin County who
have dropped out of school and are receiving
public assistance. The program administrator
shall report annually to the commissioner on
skills development, education, job training,
and job placement outcomes for program
participants.

County Allocations for Rate Increases.
County Children and Community Services
Act allocations shall be increased by
$197,000 effective October 1, 2007, and
$696,000 effective October 1, 2008, to help
counties pay for the rate adjustments to
day training and habilitation providers for
participants paid by county social service
funds. Notwithstanding the provisions of
Minnesota Statutes, section 256M.40, the
allocation to a county shall be based on
the county's proportion of social services
spending for day training and habilitation
services as determined in the most recent
social services expenditure and grant
reconciliation report.

Privatized Adoption Grants. Federal
reimbursement for privatized adoption grant
and foster care recruitment grant expenditures
is appropriated to the commissioner for
adoption grants and foster care and adoption
administrative purposes.

Adoption Assistance Incentive Grants.
Federal funds available during fiscal year
2008 and fiscal year 2009 for the adoption
incentive grants are appropriated to the
commissioner for these purposes.

Adoption Assistance and Relative Custody
Assistance. The commissioner may transfer
unencumbered appropriation balances for
adoption assistance and relative custody
assistance between fiscal years and between
programs.

Children's Mental Health Grants. Of the
general fund appropriation, $5,913,000 in
fiscal year 2008 and $6,825,000 in fiscal year
2009 are for children's mental health grants.
The purpose of these grants is to increase and
maintain the state's children's mental health
service capacity, especially for school-based
mental health services. The commissioner
shall require grantees to utilize all available
third party reimbursement sources as a
condition of using state grant funds. At
least 15 percent of these funds shall be
used to encourage efficiencies through early
intervention services. At least another 15
percent shall be used to provide respite care
services for children with severe emotional
disturbance at risk of out-of-home placement.

Mental Health Crisis Services. Of the
general fund appropriation, $2,528,000 in
fiscal year 2008 and $2,850,000 in fiscal year
2009 are for statewide funding of children's
mental health crisis services. Providers must
utilize all available funding streams.

Children's Mental Health Evidence-Based
and Best Practices. Of the general fund
appropriation, $375,000 in fiscal year 2008
and $750,000 in fiscal year 2009 are for
children's mental health evidence-based and
best practices including, but not limited
to: Adolescent Integrated Dual Diagnosis
Treatment services; school-based mental
health services; co-location of mental
health and physical health care, and; the
use of technological resources to better
inform diagnosis and development of
treatment plan development by mental
health professionals. The commissioner
shall require grantees to utilize all available
third-party reimbursement sources as a
condition of using state grant funds.

Culturally Specific Mental Health
Treatment Grants. Of the general fund
appropriation, $75,000 in fiscal year 2008
and $300,000 in fiscal year 2009 are for
children's mental health grants to support
increased availability of mental health
services for persons from cultural and
ethnic minorities within the state. The
commissioner shall use at least 20 percent
of these funds to help members of cultural
and ethnic minority communities to become
qualified mental health professionals and
practitioners. The commissioner shall assist
grantees to meet third-party credentialing
requirements and require them to utilize all
available third-party reimbursement sources
as a condition of using state grant funds.

Mental Health Services for Children with
Special Treatment Needs. Of the general
fund appropriation, $50,000 in fiscal year
2008 and $200,000 in fiscal year 2009 are
for children's mental health grants to support
increased availability of mental health
services for children with special treatment
needs. These shall include, but not be limited
to: victims of trauma, including children
subjected to abuse or neglect, veterans and
their families, and refugee populations;
persons with complex treatment needs, such
as eating disorders; and those with low
incidence disorders.

MFIP and Children's Mental Health
Pilot Project. Of the TANF appropriation,
$100,000 in fiscal year 2008 and $200,000
in fiscal year 2009 are to fund the MFIP
and children's mental health pilot project.
Of these amounts, up to $100,000 may be
expended on evaluation of this pilot.

Prenatal Alcohol or Drug Use. Of the
general fund appropriation, $75,000 each
year is to award grants beginning July 1,
2007, to programs that provide services
under Minnesota Statutes, section 254A.171,
in Pine, Kanabec, and Carlton Counties. This
appropriation shall become part of the base
appropriation.

Base Adjustment. The general fund base
is $62,572,000 in fiscal year 2010 and
$62,575,000 in fiscal year 2011.

(h) Children and Community Services Grants

General

101,369,000

69,208,000

Base Adjustment. The general fund base
is $69,274,000 in each of fiscal years 2010
and 2011.

Targeted Case Management Temporary
Funding. (a) Of the general fund
appropriation, $32,667,000 in fiscal year
2008 is transferred to the targeted case
management contingency reserve account in
the general fund to be allocated to counties
and tribes affected by reductions in targeted
case management federal Medicaid revenue
as a result of the provisions in the federal
Deficit Reduction Act of 2005, Public Law
109-171.

(b) Contingent upon (1) publication by the
federal Centers for Medicare and Medicaid
Services of final regulations implementing
the targeted case management provisions
of the federal Deficit Reduction Act of
2005, Public Law 109-171, or (2) the
issuance of a finding by the Centers for
Medicare and Medicaid Services of federal
Medicaid overpayments for targeted case
management expenditures, up to $32,667,000
is appropriated to the commissioner of human
services. Prior to distribution of funds, the
commissioner shall estimate and certify the
amount by which the federal regulations or
federal disallowance will reduce targeted
case management Medicaid revenue over the
2008-2009 biennium.

(c) Within 60 days of a contingency described
in paragraph (b), the commissioner shall
distribute the grants proportionate to each
affected county or tribe's targeted case
management federal earnings for calendar
year 2005, not to exceed the lower of (1) the
amount of the estimated reduction in federal
revenue or (2) $32,667,000.

(d) These funds are available in either year of
the biennium. Counties and tribes shall use
these funds to pay for social service-related
costs, but the funds are not subject to
provisions of the Children and Community
Services Act grant under Minnesota Statutes,
chapter 256M.

(e) This appropriation shall be available to
pay counties and tribes for expenses incurred
on or after July 1, 2007. The appropriation
shall be available until expended.

(i) General Assistance Grants

General

37,876,000

38,253,000

General Assistance Standard. The
commissioner shall set the monthly standard
of assistance for general assistance units
consisting of an adult recipient who is
childless and unmarried or living apart
from parents or a legal guardian at $203.
The commissioner may reduce this amount
according to Laws 1997, chapter 85, article
3, section 54.

Emergency General Assistance. The
amount appropriated for emergency general
assistance funds is limited to no more
than $7,889,812 in fiscal year 2008 and
$7,889,812 in fiscal year 2009. Funds
to counties must be allocated by the
commissioner using the allocation method
specified in Minnesota Statutes, section
256D.06.

(j) Minnesota Supplemental Aid Grants

General

30,505,000

30,812,000

Emergency Minnesota Supplemental
Aid Funds. The amount appropriated for
emergency Minnesota supplemental aid
funds is limited to no more than $1,100,000
in fiscal year 2008 and $1,100,000 in fiscal
year 2009. Funds to counties must be
allocated by the commissioner using the
allocation method specified in Minnesota
Statutes, section 256D.46.

(k) Group Residential Housing Grants

General

91,069,000

98,671,000

People Incorporated. Of the general fund
appropriation, $460,000 each year is to
augment community support and mental
health services provided to individuals
residing in facilities under Minnesota
Statutes, section 256I.05, subdivision 1m.

(l) Other Children and Economic Assistance Grants

General	20,183,000	16,333,000
Federal TANF	1,500,000	1,500,000

Base Adjustment. The general fund base
shall be $16,033,000 in fiscal year 2010 and
$15,533,000 in fiscal year 2011. The TANF
base shall be $1,500,000 in fiscal year 2010
and $1,181,000 in fiscal year 2011.

Homeless and Runaway Youth. Of the
general fund appropriation, $500,000 each
year are for the Runaway and Homeless
Youth Act under Minnesota Statutes, section
256K.45. Funds shall be spent in each area
of the continuum of care to ensure that
programs are meeting the greatest need. This
is a onetime appropriation.

Long-Term Homelessness. Of the general
fund appropriation, $2,000,000 in fiscal year
2008 is for implementation of programs
to address long-term homelessness and is
available in either year of the biennium. This
is a onetime appropriation.

Minnesota Community Action Grants. (a)
Of the general fund appropriation, $250,000
each year is for the purposes of Minnesota
community action grants under Minnesota
Statutes, sections 256E.30 to 256E.32. This
is a onetime appropriation.

(b) Of the TANF appropriation, $1,500,000
each year is for community action agencies
for auto repairs, auto loans, and auto
purchase grants to individuals who are
eligible to receive benefits under Minnesota
Statutes, chapter 256J, or who have lost
eligibility for benefits under Minnesota
Statutes, chapter 256J, due to earnings in the
prior 12 months. Base level funding for this
activity shall be $1,500,000 in fiscal year
2010 and $1,181,000 in fiscal year 2011. *
(The preceding text beginning "(b) Of the
TANF appropriation," was indicated as
vetoed by the governor.)

(c) Money appropriated under paragraphs (a)
and (b) that is not spent in the first year does
not cancel but is available for the second
year.

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Prekindergarten finance allowances. new text end

new text begin For grants to prekindergarten
exploratory projects under Minnesota Statutes, section 124D.143:
new text end

	new text begin $ new text end	new text begin 6,000,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 20,000,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin In fiscal year 2010, this appropriation is for grants to the city of St. Paul, Hennepin
County, and Blue Earth County for scholarship projects in collaboration with the
Minnesota Early Learning Foundation to promote children's school readiness. In fiscal
year 2011, this appropriation is for grants to the city of St. Paul, Hennepin County, Blue
Earth County, Anoka County, Olmsted County, Otter Tail County, St. Louis County, and a
consortium of Benton, Stearns, and Sherburne Counties. The appropriation is available
until expended. This appropriation is part of the base budget for subsequent fiscal years.
new text end