HF 2015

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; modifying certain special education statutory funding
provisions; amending Minnesota Statutes 2006, sections 124D.454, subdivisions
2, 3; 125A.76, subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.79,
subdivisions 5, 6, 8.

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

Section 1.

Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to
read:

Subd. 2.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) deleted text begin "Base year" means the second fiscal year preceding the fiscal year for which
aid will be paid.
deleted text end

deleted text begin (b) deleted text end "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

deleted text begin (c) "Average daily membership" has the meaning given it in section .
deleted text end

deleted text begin (d) "Program growth factor" means for fiscal year 1998 and later.
deleted text end

deleted text begin (e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.
deleted text end

deleted text begin (f) deleted text end new text begin (b) new text end "Essential personnel" means a licensed teacher, licensed support services
staff person, paraprofessional providing direct services to students, or licensed personnel
under subdivision 12. This definition is not intended to change or modify the definition of
essential employee in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Base revenue deleted text end new text begin Initial aid new text end .

deleted text begin (a) deleted text end The transition-disabled program deleted text begin base revenue deleted text end new text begin
initial aid new text end equals the sum of the following amounts computed using deleted text begin base deleted text end new text begin current new text end year data:

(1) 68 percent of the salary of each essential licensed person or approved
paraprofessional who provides direct instructional services to students employed during
that fiscal year for services rendered in that district's transition program for children with a
disability;

(2) 47 percent of the costs of necessary equipment for transition programs for
children with a disability;

(3) 47 percent of the costs of necessary travel between instructional sites by transition
program teachers of children with a disability but not including travel to and from local,
regional, district, state, or national career and technical student organization meetings;

(4) 47 percent of the costs of necessary supplies for transition programs for children
with a disability but not to exceed an average of $47 in any one school year for each child
with a disability receiving these services;

(5) for transition programs for children with disabilities provided by a contract
approved by the commissioner with public, private, or voluntary agencies other than a
Minnesota school district or cooperative center, in place of programs provided by the
district, 52 percent of the difference between the amount of the contract and the basic
revenue of the district for that pupil for the fraction of the school day the pupil receives
services under the contract;

(6) for transition programs for children with disabilities provided by a contract
approved by the commissioner with public, private, or voluntary agencies other than a
Minnesota school district or cooperative center, that are supplementary to a full educational
program provided by the school district, 52 percent of the amount of the contract; and

(7) for a contract approved by the commissioner with another Minnesota school
district or cooperative center for vocational evaluation services for children with a
disability for children that are not yet enrolled in grade 12, 52 percent of the amount
of the contract.

deleted text begin (b) If requested by a school district for transition programs during the base year for
less than the full school year, the commissioner may adjust the base revenue to reflect
the expenditures that would have occurred during the base year had the program been
operated for the full year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) deleted text begin "Base year" for fiscal year 1998 and later fiscal years means the second fiscal
year preceding the fiscal year for which aid will be paid.
deleted text end

deleted text begin (b) deleted text end "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

deleted text begin (c) deleted text end new text begin (b) new text end "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing direct services to students. Essential personnel may also
include special education paraprofessionals or clericals providing support to teachers and
students by preparing paperwork and making arrangements related to special education
compliance requirements, including parent meetings and individual education plans.

deleted text begin (d) deleted text end new text begin (c) new text end "Average daily membership" has the meaning given it in section 126C.05.

deleted text begin (e) deleted text end new text begin (d) new text end "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal
year 2004 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:

Subd. 2.

Special education deleted text begin base revenue deleted text end new text begin initial aid new text end .

deleted text begin (a) deleted text end The special education
deleted text begin base revenue deleted text end new text begin initial aid new text end equals the sum of the following amounts computed using deleted text begin base deleted text end new text begin
current new text end year data:

(1) 68 percent of the salary of each essential person employed in the district's
program for children with a disability during the fiscal year, whether the person is
employed by one or more districts or a Minnesota correctional facility operating on a
fee-for-service basis;

(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
for the Blind, 68 percent of the salary of each instructional aide assigned to a child
attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with
public, private, or voluntary agencies other than school districts, in place of special
instruction and services provided by the district, 52 percent of the difference between the
amount of the contract and the amount of the basic revenue, as defined in section 126C.10,
subdivision 2, special education aid, and any other aid earned on behalf of the child for the
fraction of the school day the pupil receives services under the contract;

(4) for special instruction and services provided to any pupil by contracting for
services with public, private, or voluntary agencies other than school districts, that are
supplementary to a full educational program provided by the school district, 52 percent of
the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of
children with a disability, an amount equal to 47 percent of the sum actually expended by
the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
not to exceed an average of $47 in any one school year for each child with a disability
receiving instruction;

(6) for fiscal years 1997 and later, special education base revenue shall include
amounts under clauses (1) to (5) for special education summer programs provided during
the base year for that fiscal year; deleted text begin and
deleted text end

(7) deleted text begin for fiscal years 1999 and later, deleted text end the cost of providing transportation services for
children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4).

The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts new text begin ; and
new text end

new text begin (8) the district's transition-disabled program initial aid according to section
124D.454, subdivision 3 new text end .

deleted text begin (b) If requested by a school district operating a special education program during
the base year for less than the full fiscal year, or a school district in which is located a
Minnesota correctional facility operating on a fee-for-service basis for less than the full
fiscal year, the commissioner may adjust the base revenue to reflect the expenditures
that would have occurred during the base year had the program been operated for the
full fiscal year.
deleted text end

deleted text begin (c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base
revenue attributable to a Minnesota correctional facility operating on a fee-for-service
basis during the facility's first year of operating on a fee-for-service basis shall be
computed using current year data.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:

Subd. 4.

State total special education aid.

deleted text begin The state total special education aid
for fiscal year 2004 equals $530,642,000. deleted text end The state total special education aid deleted text begin for fiscal
year 2005 deleted text end equals deleted text begin $529,164,000 deleted text end new text begin $549,222,000 for fiscal year 2008, $560,523,000 for fiscal
year 2009, $562,092,000 for fiscal year 2010, and $564,001,000 for fiscal year 2011 new text end . The
state total special education aid for later fiscal years equals:

(1) the state total special education aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the
current fiscal year to the state total average daily membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:

Subd. 5.

School district special education aid.

deleted text begin (a) deleted text end A school district's special
education aid for fiscal year deleted text begin 2000 deleted text end new text begin 2008 new text end and later equals the state total special education
aid deleted text begin , minus the amount determined under paragraphs (b) and (c), deleted text end times the ratio of the
district's deleted text begin adjusted deleted text end new text begin initial new text end special education deleted text begin base revenue deleted text end new text begin aid new text end to the state total deleted text begin adjusted deleted text end new text begin
initial new text end special education deleted text begin base revenue deleted text end new text begin aid new text end . deleted text begin If the commissioner of education modifies
its rules for special education in a manner that increases a district's special education
obligations or service requirements, the commissioner shall annually increase each
district's special education aid by the amount necessary to compensate for the increased
service requirements. The additional aid equals the cost in the current year attributable to
rule changes not reflected in the computation of special education base revenue, multiplied
by the appropriate percentages from subdivision 2.
deleted text end

deleted text begin (b) Notwithstanding paragraph (a), if the special education base revenue for a
district equals zero, the special education aid equals the amount computed according
to subdivision 2 using current year data.
deleted text end

deleted text begin (c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for
a district is greater than zero, and the base year amount for the district under subdivision
2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the
amount computed according to paragraph (a), plus the amount computed according to
subdivision 2, paragraph (a), clause (7), using current year data.
deleted text end

deleted text begin (d) A charter school under section shall generate state special education
aid based on current year expenditures for its first four years of operation and only in its
fifth and later years shall paragraphs (a), (b), and (c) apply.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Special education forecast maintenance of effort. new text end

new text begin (a) If, on the basis of
a forecast of general fund revenues and expenditures under section 16A.103; the state's
expenditures for special education and related services for children with disabilities
from nonfederal sources for a fiscal year, including special education aid under section
125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel
for home-based services under section 125A.75, subdivision 1; aid for students with
disabilities under section 125A.75, subdivision 3; court-placed special education under
section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8;
and direct expenditures by state agencies, are projected to be less than the amount required
to meet federal special education maintenance of effort, the additional amount required
to meet federal special education maintenance of effort is added to the state total special
education aid in section 125A.76, subdivision 4.
new text end

new text begin (b) If, on the basis of a forecast of general fund revenues and expenditures under
section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater
than previously forecast for an enacted budget, and an addition to state total special
education aid has been made under paragraph (a), the state total special education aid
must be reduced by the lesser of the amount of the expenditure increase or the amount
previously added to state total special education aid in section 125A.76, subdivision 4.
new text end

new text begin (c) For the purpose of this section, "previously forecast for an enacted budget" means
the allocation of funding for these programs in the most recent forecast of general fund
revenues and expenditures or the act appropriating money for these programs, whichever
occurred most recently. It does not include planning estimates for a future biennium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2010.
new text end

Sec. 8.

Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:

Subd. 5.

Initial excess cost aid.

For fiscal years deleted text begin 2002 deleted text end new text begin 2008 new text end and later, a district's
initial excess cost aid equals the deleted text begin greatest deleted text end new text begin greater new text end of:

(1) 75 percent of the difference between (i) the district's unreimbursed special
education cost new text begin for the preceding fiscal year new text end and (ii) 4.36 percent of the district's general
revenue new text begin for the preceding fiscal year new text end ; new text begin or
new text end

(2) deleted text begin 70 percent of the difference between (i) the increase in the district's unreimbursed
special education cost between the base year as defined in section deleted text begin 125A.76, subdivision 1 deleted text end ,
and the current year and (ii) 1.6 percent of the district's general revenue; or
deleted text end

deleted text begin (3) deleted text end zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:

Subd. 6.

State total special education excess cost aid.

The state total special
education excess cost aid deleted text begin for fiscal year 2005 deleted text end equals deleted text begin $91,811,000 deleted text end new text begin $107,435,000 for fiscal
year 2008, $109,753,000 for fiscal year 2009, $109,996,000 for fiscal year 2010, and
$110,333,000 for fiscal year 2011 new text end . deleted text begin The state total special education excess cost aid equals
$103,600,000 for fiscal year 2006 and $104,700,000 for fiscal year 2007. deleted text end The state total
special education excess cost aid for deleted text begin fiscal year 2008 and deleted text end later fiscal years equals:

(1) the state total special education excess cost aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the
current fiscal year to the state total average daily membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:

Subd. 8.

Out-of-state tuition.

For children who are residents of the state, receive
services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
treatment facility by court action in a state that does not have a reciprocity agreement
with the commissioner under section 125A.155, the resident school district shall submit
the balance of the tuition bills, minus the deleted text begin amount of the basic revenue, as defined
by section 126C.10, subdivision 2, of the district for the child and deleted text end new text begin general education
revenue, excluding basic skills revenue and alternative teacher compensation revenue, and
referendum equalization aid attributable to the pupil, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
minus new text end the special education deleted text begin aid, and any other aid earned on behalf of the child deleted text end new text begin contracted
services initial aid attributable to the pupil new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end