HF 2662

as introduced - 87th Legislature (2011 - 2012) Posted on 03/05/2012 01:48pm

A bill for an act
relating to education finance; phasing out the special education tuition bill-back
procedure; making the serving school responsible for all special education costs;
amending Minnesota Statutes 2010, section 127A.47, subdivision 7.

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

Section 1.

Minnesota Statutes 2010, section 127A.47, subdivision 7, is amended to
read:

Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

deleted text begin (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.
deleted text end

deleted text begin (e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to deleted text end new text begin (d) For purposes of this subdivision, the
"unreimbursed cost of providing special education and services" means the difference
between: new text end (1) the actual cost of providing special instruction and services, including
special transportation and unreimbursed building lease and debt service costs for facilities
used primarily for special education, for a pupil with a disability, as defined in section
125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed
in this subdivision, minus (2) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount
of general education revenue and referendum equalization aid attributable to that pupil
for the portion of time the pupil receives special instruction and services outside of the
regular classroom, excluding portions attributable to district and school administration,
district support services, operations and maintenance, capital expenditures, and pupil
transportation, minus (3) special education aid attributable to that pupil, that is received
by the district providing special instruction and services. For purposes of this paragraph,
general education revenue and referendum equalization aid attributable to a pupil must be
calculated using the serving district's average general education revenue and referendum
equalization aid per adjusted pupil unit.

new text begin (e) Special education aid paid to a resident district must be reduced by the following
amounts:
new text end

new text begin (1) for fiscal year 2014, by an amount equal to 80 percent of the unreimbursed cost
of providing special education and services;
new text end

new text begin (2) for fiscal year 2015, by an amount equal to 60 percent of the unreimbursed cost
of providing special education and services;
new text end

new text begin (3) for fiscal year 2016, by an amount equal to 40 percent of the unreimbursed cost
of providing special education and services; and
new text end

new text begin (4) for fiscal year 2017, by an amount equal to 20 percent of the unreimbursed cost
of providing special education and services.
new text end

new text begin For fiscal years 2018 and later, special education aid paid to a resident district is not
reduced except as provided in paragraph (f).
new text end

new text begin (f) Notwithstanding paragraph (e), special education aid paid to a resident district
must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
education and services provided to students at an intermediate district, a cooperative, or a
charter school where the percentage of students eligible for special education services is at
least 70 percent of the charter school's total enrollment.
new text end

new text begin (g) new text end Special education aid paid to the district or cooperative providing special
instruction and services for the pupil, or to the fiscal agent district for a cooperative,
must be increased by the amount of the reduction in the aid paid to the resident district new text begin
under paragraphs (e) and (f) new text end . If the resident district's special education aid is insufficient
to make the full adjustment, the remaining adjustment shall be made to other state aids
due to the district.

deleted text begin (f) deleted text end new text begin (h) new text end An area learning center operated by a service cooperative, intermediate
district, education district, or a joint powers cooperative may elect through the action of
the constituent boards to charge the resident district tuition for pupils rather than to have
the general education revenue paid to a fiscal agent school district. Except as provided in
paragraph deleted text begin (d) or deleted text end (e) new text begin or (f) new text end , the district of residence must pay tuition equal to at least 90
percent of the district average general education revenue per pupil unit minus an amount
equal to the product of the formula allowance according to section 126C.10, subdivision
2, times .0485, calculated without compensatory revenue and transportation sparsity
revenue, times the number of pupil units for pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end