HF 3635

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/13/2024 12:42pm

A bill for an act
relating to education finance; increasing special education and English learner
cross subsidy aid by the increase in the Consumer Price Index; amending Minnesota
Statutes 2023 Supplement, sections 124D.65, subdivision 5; 125A.76, subdivision
2e.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 124D.65, subdivision 5, is
amended to read:

Subd. 5.

School district EL revenue.

(a) For fiscal year 2024 through fiscal year 2026,
a district's English learner programs revenue equals the sum of:

(1) the product of (i) $1,228, and (ii) the greater of 20 or the adjusted average daily
membership of eligible English learners enrolled in the district during the current fiscal
year; and

(2) $436 times the English learner pupil units under section 126C.05, subdivision 17.

(b) For fiscal year 2027 and later, a district's English learner programs revenue equals
the sum of:

(1) the product of (i) $1,775, and (ii) the greater of 20 or the adjusted average daily
membership of eligible English learners enrolled in the district during the current fiscal
year;

(2) $630 times the English learner pupil units under section 126C.05, subdivision 17;
and

(3) the district's English learner cross subsidy aid. A district's English learner cross
subsidy aid deleted text begin under paragraph (c) deleted text end equals deleted text begin 25 percent of deleted text end new text begin the cross subsidy factor for that year
times new text end the district's English learner cross subsidy for fiscal year 2027 and later.

(c) A district's English learner cross subsidy deleted text begin aid deleted text end equals the greater of zero or the difference
between the district's expenditures for qualifying English learner services for the second
previous year and the district's English learner revenue for the second previous year.

(d) new text begin The English learner cross subsidy factor equals 25 percent for fiscal year 2027. For
fiscal year 2028 and later, the English learner cross subsidy factor equals the cross subsidy
factor for the previous fiscal year times one plus the rate of change in inflation calculated
under section 126C.10, subdivision 2, paragraph (c). The English learner cross subsidy
factor must not exceed 80 percent in any fiscal year.
new text end

new text begin (e) new text end A pupil ceases to generate state English learner aid in the school year following the
school year in which the pupil attains the state cutoff score on a commissioner-provided
assessment that measures the pupil's emerging academic English.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2028 and later.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 125A.76, subdivision 2e, is amended
to read:

Subd. 2e.

Cross subsidy reduction aid.

(a) A school district's annual cross subsidy
reduction aid equals the school district's initial special education cross subsidy for the
previous fiscal year times the cross subsidy aid factor for that fiscal year.

(b) The cross subsidy aid factor equals deleted text begin 6.43 percent for fiscal year 2023; deleted text end 44 percent for
fiscal years 2024, 2025, and 2026; deleted text begin and deleted text end 50 percent for fiscal year 2027 new text begin ; and the amount
specified in paragraph (c) for fiscal year 2028 new text end and later.

new text begin (c) For fiscal year 2028 and later, the special education cross subsidy factor equals the
cross subsidy factor for the previous fiscal year times one plus the rate of change in inflation
calculated under section 126C.10, subdivision 2, paragraph (c). The special education cross
subsidy factor must not exceed 80 percent in any fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2028 and later.
new text end