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HF 4115

as introduced - 90th Legislature (2017 - 2018) Posted on 03/21/2018 12:01pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education finance; raising revenue for charter schools to approximate
school district revenue; amending Minnesota Statutes 2016, sections 123B.595,
subdivision 2; 124E.20, subdivision 1; 126C.44; 127A.47, subdivision 7; Minnesota
Statutes 2017 Supplement, section 124E.22.

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

Section 1.

Minnesota Statutes 2016, section 123B.595, subdivision 2, is amended to read:


Subd. 2.

Long-term facilities maintenance revenue for a charter school.

deleted text begin (a) For fiscal
year 2017 only, long-term facilities maintenance revenue for a charter school equals $34
times the adjusted pupil units.
deleted text end

deleted text begin (b) For fiscal year 2018 only, long-term facilities maintenance revenue for a charter
school equals $85 times the adjusted pupil units.
deleted text end

deleted text begin (c)deleted text end For fiscal year 2019 and later, long-term facilities maintenance revenue for a charter
school equals deleted text begin $132deleted text end new text begin $380new text end times the adjusted pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 2.

Minnesota Statutes 2016, section 124E.20, subdivision 1, is amended to read:


Subdivision 1.

Revenue calculation.

(a) General education revenue must be paid to a
charter school as though it were a district. The general education revenue for each adjusted
pupil unit isnew text begin the sum of:
new text end

new text begin (1)new text end the state average general education revenue per pupil unit, deleted text begin plus the
deleted text end

new text begin (2) state average operating new text end referendum deleted text begin equalization aid allowance in the pupil's district
of residence
deleted text end new text begin revenue, and
new text end

new text begin (3) safe schools revenue under section 126C.44, paragraph (d)new text end , minus

new text begin (4) new text end an amount equal to the product of the formula allowance according to section 126C.10,
subdivision 2
, times .0466, calculated without declining enrollment revenue, deleted text begin local optional
revenue,
deleted text end basic skills revenue, extended time revenue, pension adjustment revenue, transition
revenue, and transportation sparsity revenue, plus declining enrollment revenue, basic skills
revenue, pension adjustment revenue, and transition revenue as though the school were a
school district.

(b) For a charter school operating an extended day, extended week, or summer program,
the general education revenue in paragraph (a) is increased by an amount equal to deleted text begin 25deleted text end new text begin 100new text end
percent of the statewide average extended time revenue per adjusted pupil unit.

(c) Notwithstanding paragraph (a), the general education revenue for an eligible special
education charter school as defined in section 124E.21, subdivision 2, equals the sum of
the amount determined under paragraph (a) and the school's unreimbursed cost as defined
in section 124E.21, subdivision 2, for educating students not eligible for special education
services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 124E.22, is amended to read:


124E.22 BUILDING LEASE AID.

(a) When a charter school finds it economically advantageous to rent or lease a building
or land for any instructional purpose and it determines that the total operating capital revenue
under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the
commissioner for building lease aid. The commissioner must review and either approve or
deny a lease aid application using the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school. The commissioner must approve aid only for
a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve the
charter school of its lease obligations at the time the charter contract is terminated or not
renewed. The closure clause under item (ii) must not be constructed or construed to relieve
the charter school of its lease obligations in effect before the charter contract is terminated
or not renewed.

(b) A charter school must not use the building lease aid it receives for custodial,
maintenance service, utility, or other operating costs.

(c) The amount of annual building lease aid for a charter school shall not exceed the
lesser of (1) 90 percent of the approved costnew text begin ,new text end or (2) the product of the charter school building
lease aid pupil units served for the current school year timesnew text begin the greater of (i)new text end $1,314new text begin , or (ii)
100 percent of the statewide average debt service revenue for school districts
new text end .

(d) A charter school's building lease aid pupil units equals the sum of the charter school
pupil units under section 126C.05 and the pupil units for the portion of the day that the
charter school's enrolled students are participating in the Postsecondary Enrollment Options
Act under section 124D.09 and not otherwise included in the pupil count under section
126C.05.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 4.

Minnesota Statutes 2016, section 126C.44, is amended to read:


126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district for
the purposes specified in this section. The maximum amount which may be levied for all
costs under this section shall be equal to $36 multiplied by the district's adjusted pupil units
for the school year. The proceeds of the levy must be reserved and used for directly funding
the following purposes or for reimbursing the cities and counties who contract with the
district for the following purposes:

(1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace
officers and sheriffs for liaison in services in the district's schools;

(2) to pay the costs for a drug abuse prevention program as defined in section 609.101,
subdivision 3
, paragraph (e), in the elementary schools;

(3) to pay the costs for a gang resistance education training curriculum in the district's
schools;

(4) to pay the costs for security in the district's schools and on school property;

(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
voluntary opt-in suicide prevention tools, and violence prevention measures taken by the
school district;

(6) to pay costs for licensed school counselors, licensed school nurses, licensed school
social workers, licensed school psychologists, and licensed alcohol and chemical dependency
counselors to help provide early responses to problems;

(7) to pay for facility security enhancements including laminated glass, public
announcement systems, emergency communications devices, and equipment and facility
modifications related to violence prevention and facility security;

(8) to pay for costs associated with improving the school climate; or

(9) to pay costs for colocating and collaborating with mental health professionals who
are not district employees or contractors.

(b) For expenditures under paragraph (a), clause (1), the district must initially attempt
to contract for services to be provided by peace officers or sheriffs with the police department
of each city or the sheriff's department of the county within the district containing the school
receiving the services. If a local police department or a county sheriff's department does
not wish to provide the necessary services, the district may contract for these services with
any other police or sheriff's department located entirely or partially within the school district's
boundaries.

(c) A school district that is a member of an intermediate school district may include in
its authority under this section the costs associated with safe schools activities authorized
under paragraph (a) for intermediate school district programs. This authority must not exceed
$15 times the adjusted pupil units of the member districts. This authority is in addition to
any other authority authorized under this section. Revenue raised under this paragraph must
be transferred to the intermediate school district.

new text begin (d) A charter school's safe schools revenue equals $36 times the charter school's adjusted
pupil units for that year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 5.

Minnesota Statutes 2016, section 127A.47, subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

(a) 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.

(b) For purposes of this subdivision, the "unreimbursed cost of providing special
education and services" means the difference between: (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, excluding local optional revenue, plus local
optional aid andnew text begin state averagenew text end referendum deleted text begin equalization aiddeleted text end new text begin revenuenew text end as defined in section
125A.11, subdivision 1, paragraph (d), 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 under section 125A.76 attributable to that pupil, that is received by the district providing
special instruction and services. For purposes of this paragraph, general education revenue
and new text begin state average new text end referendum deleted text begin equalization aiddeleted text end new text begin revenuenew text end attributable to a pupil must be
calculated using the serving district's average general education revenue andnew text begin state averagenew text end
referendum deleted text begin equalization aiddeleted text end new text begin revenuenew text end per adjusted pupil unit.

(c) deleted text begin For fiscal year 2015 and later,deleted text end Special education aid paid to a resident district must
be reduced by an amount equal to 90 percent of the unreimbursed cost of providing special
education and services.

(d) Notwithstanding paragraph (c), 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, cooperative, or charter school
where the percent of students eligible for special education services is at least 70 percent
of the charter school's total enrollment.

(e) Notwithstanding paragraph (c), special education aid paid to a resident district must
be reduced under paragraph (d) for students at a charter school receiving special education
aid under section 124E.21, subdivision 3, calculated as if the charter school received special
education aid under section 124E.21, subdivision 1.

(f) 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 under paragraphs (c)
and (d). If the resident district's special education aid is insufficient to make the full
adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be made to
other state aids due to the district.

(g) Notwithstanding paragraph (a), general education aid paid to the resident district of
a nonspecial education student for whom an eligible special education charter school receives
general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced
by an amount equal to the difference between the general education aid attributable to the
student under section 124E.20, subdivision 1, paragraph (c), and the general education aid
that the student would have generated for the charter school under section 124E.20,
subdivision 1
, paragraph (a). For purposes of this paragraph, "nonspecial education student"
means a student who does not meet the definition of pupil with a disability as defined in
section 125A.02 or the definition of a pupil in section 125A.51.

(h) 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 (f), the district of residence must pay tuition equal to at least 90 and no more than
100 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 .0466, calculated without compensatory revenue, local optional 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 fiscal year 2019 and later.
new text end