HF 3595

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/21/2024 04:00pm

A bill for an act
relating to education finance; modifying the special education aid for unreimbursed
costs to resident school districts; amending Minnesota Statutes 2022, sections
124E.21, subdivision 1; 127A.47, subdivision 7.

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

Section 1.

Minnesota Statutes 2022, section 124E.21, subdivision 1, is amended to read:

Subdivision 1.

Special education aid.

(a) Except as provided in section 124E.23, special
education aid, excluding cross subsidy reduction aid under section 125A.76, subdivision
2e, must be paid to a charter school according to section 125A.76, as though it were a school
district.

(b) deleted text begin For fiscal year 2020 and later, deleted text end The special education aid paid to the charter school
shall be adjusted as follows:

(1) if the charter school does not receive general education revenue on behalf of the
student according to section 124E.20, the aid shall be adjusted as provided in section
125A.11; or

(2) if the charter school receives general education revenue on behalf of the student
according to section 124E.20, the aid shall be adjusted as provided in section 127A.47,
subdivision 7, paragraphs (b) to (e), and if the tuition adjustment is computed under section
127A.47, subdivision 7, paragraph (c), it shall also receive an adjustment equal to deleted text begin five
percent for fiscal year 2020 or deleted text end ten percent for fiscal deleted text begin year deleted text end new text begin years new text end 2021 new text begin through 2025 and 40
percent for fiscal year 2026 new text end and later of the unreimbursed cost of providing special education
and services for the student.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2026 and later.
new text end

Sec. 2.

Minnesota Statutes 2022, 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 and referendum equalization aid 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, excluding cross subsidy reduction aid under section 125A.76, subdivision 2e,
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.

(c) deleted text begin For fiscal year 2020, special education aid paid to a resident district must be reduced
by an amount equal to 85 percent of the unreimbursed cost of providing special education
and services. deleted text end For fiscal deleted text begin year deleted text end new text begin years new text end 2021 deleted text begin and later deleted text end new text begin through 2025 new text end , special education aid paid
to a resident district must be reduced by an amount equal to 80 percent of the unreimbursed
cost of providing special education and services. new text begin For fiscal year 2026 and later, special
education aid paid to a resident district must be reduced by an amount equal to 50 percent
of the unreimbursed cost of providing special education and services.
new text end

(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 revenue for fiscal year 2026 and later.
new text end