HF 4004

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/03/2022 02:05pm

A bill for an act
relating to education finance; modifying the growth factor for adult basic education
aid; increasing the maximum contact hour rate; appropriating money; amending
Minnesota Statutes 2020, section 124D.531, subdivisions 1, 4.

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

Section 1.

Minnesota Statutes 2020, section 124D.531, subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic
education aid for fiscal year deleted text begin 2011 deleted text end new text begin 2023 new text end equals deleted text begin $44,419,000 deleted text end new text begin $51,781,000 new text end , plus any amount
that is not paid during the previous fiscal year as a result of adjustments under subdivision
4, paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education
aid for later fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any amount
that is not paid for during the previous fiscal year, as a result of adjustments under subdivision
4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of new text begin 1.03, or the greater of new text end :

(i) deleted text begin 1.03 deleted text end new text begin one plus the percent change in the formula allowance under section 126C.10,
subdivision 2, from the previous fiscal year to the current fiscal year new text end ; or

(ii) the average growth in state total contact hours over the prior ten program years.

Three percent of the state total adult basic education aid must be set aside for adult basic
education supplemental service grants under section 124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals the
difference between the amount computed in paragraph (a), and the state total basic population
aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2023 and later.
new text end

Sec. 2.

Minnesota Statutes 2020, section 124D.531, subdivision 4, is amended to read:

Subd. 4.

Adult basic education program aid limit.

(a) Notwithstanding subdivisions
2 and 3, the total adult basic education aid for a program per prior year contact hour must
not exceed deleted text begin $22 deleted text end new text begin $28 new text end per prior year contact hour computed under subdivision 3, clause (2).

(b) The aid for a program under subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the aid for that program under subdivision 3, clause (2), for
the first preceding fiscal year by more than the greater of 11 percent or $10,000.

(c) Adult basic education aid is payable to a program for unreimbursed costs occurring
in the program year as defined in section 124D.52, subdivision 3.

(d) Any adult basic education aid that is not paid to a program because of the program
aid limitation under paragraph (a) must be added to the state total adult basic education aid
for the next fiscal year under subdivision 1. Any adult basic education aid that is not paid
to a program because of the program aid limitations under paragraph (b) must be reallocated
among programs by adjusting the rate per contact hour under subdivision 3, clause (2).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2023 and later.
new text end

Sec. 3. new text begin APPROPRIATION; ADULT BASIC EDUCATION.
new text end

new text begin $....... in fiscal year 2023 is appropriated from the general fund to the Department of
Education for the additional adult basic education aid required under sections 1 and 2. This
appropriation is in addition to the appropriation under Laws 2021, First Special Session
chapter 13, article 10, section 1, subdivision 8.
new text end