1.1 	A bill for an act
1.2 	relating to education finance; increasing adult basic education aid for certain 
1.3 	program providers;amending Minnesota Statutes 2012, section 124D.531, 
1.4 	subdivisions 2, 3; Minnesota Statutes 2013 Supplement, section 124D.531, 
1.5 	subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, 
1.8 	is amended to read:
1.9 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
1.10 	education aid for fiscal year 2011 equals the sum of: 
1.11 	(1) $44,419,000~~, plus~~;
1.12 	(2) $....... for added costs of service providers without specific district characteristics 
1.13 	according to subdivision 3, clause (5); and
1.14 	(3) any amount that is not paid during the previous fiscal year as a result of 
1.15 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. 
1.16 	(b) The state total adult basic education aid for later fiscal years equals:
1.17 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
1.18 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
1.19 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
1.20 	(2) the lesser of:
1.21 	(i) 1.025; or
1.22 	(ii) the average growth in state total contact hours over the prior ten program years.
1.23 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
1.24 	aid must be set aside for adult basic education supplemental service grants under section 
1.25 	124D.522.
2.1 	~~(b)~~ (c) The state total adult basic education aid, excluding basic population aid, 
2.2 	equals the difference between the amount computed in ~~paragraph (a),~~ paragraphs (a) and 
2.3 	(b) and the state total basic population aid under subdivision 2.

2.4 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
2.5 	and later.

2.6 	Sec. 2. Minnesota Statutes 2012, section 124D.531, subdivision 2, is amended to read:
2.7 		Subd. 2.Basic population aid. A district is eligible for basic population aid if the 
2.8 	district has a basic service level approved by the commissioner under section 124D.52, 
2.9 	subdivision 5, or is a member of a consortium with an approved basic service level. Basic 
2.10 	population aid is equal to the greater of $3,844 or $1.73 times the population of the district. 
2.11 	District population is determined according to section 275.14. The basic population aid 
2.12 	for an approved program without a specific defined district population equals $1.73 times 
2.13 	the number of students participating in the program during the previous calendar year.

2.14 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
2.15 	and later.

2.16 	Sec. 3. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
2.17 		Subd. 3.Program revenue. Adult basic education programs established under 
2.18 	section 124D.52 and approved by the commissioner are eligible for revenue under this 
2.19 	subdivision. For fiscal year 2001 and later, adult basic education revenue for each 
2.20 	approved program equals the sum of:
2.21 	(1) the basic population aid under subdivision 2 for districts participating in the 
2.22 	program during the current program year; plus
2.23 	(2) 84 percent times the amount computed in subdivision 1, paragraph ~~(b)~~ (c), times 
2.24 	the ratio of the contact hours for students participating in the program during the first prior 
2.25 	program year to the state total contact hours during the first prior program year; plus
2.26 	(3) eight percent times the amount computed in subdivision 1, paragraph ~~(b)~~ (c), 
2.27 	times the ratio of the enrollment of English learners during the second prior school year 
2.28 	in districts participating in the program during the current program year to the state total 
2.29 	enrollment of English learners during the second prior school year in districts participating 
2.30 	in adult basic education programs during the current program year; ~~plus~~
2.31 	(4) eight percent times the amount computed in subdivision 1, paragraph ~~(b)~~ (c), 
2.32 	times the ratio of the latest federal census count of the number of adults aged 20 or older 
2.33 	with no diploma residing in the districts participating in the program during the current 
3.1 	program year to the latest federal census count of the state total number of adults aged 20 
3.2 	or older with no diploma residing in the districts participating in adult basic education 
3.3 	programs during the current program year; plus
3.4 	(5) for an approved program without district characteristics necessary to calculate 
3.5 	revenue under clauses (3) and (4), the average revenue per participant for programs 
3.6 	receiving revenue under those clauses for the previous year, times the program's 
3.7 	participants for the previous year.

3.8 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
3.9 	and later.