1.1                          A bill for an act
  1.2             relating to education; increasing general education 
  1.3             revenue; modifying pupil transportation formulas; 
  1.4             increasing funding for limited English proficiency 
  1.5             programs; increasing funding for special education; 
  1.6             modifying the compensatory revenue program; modifying 
  1.7             the special education excess cost formula; increasing 
  1.8             funding for integration and desegregation programs; 
  1.9             funding program deficiencies; expanding the general 
  1.10            education program open and standing appropriation; 
  1.11            appropriating money; amending Minnesota Statutes 1996, 
  1.12            sections 124.17, subdivisions 1d and 5; 124.225, 
  1.13            subdivisions 1, 13, 14, 15, and 16; 124.226, 
  1.14            subdivisions 9 and 10; 124.2613, subdivision 3; 
  1.15            124.2615, subdivision 2; 124.2711, subdivision 1; 
  1.16            124.273, subdivisions 1d, 1g, and by adding a 
  1.17            subdivision; 124.311, subdivision 4; 124.312, 
  1.18            subdivision 5; 124.3201, subdivisions 1, 2, and 2b; 
  1.19            124.323, subdivisions 1 and 2; 124.912, subdivision 2; 
  1.20            124A.032; 124A.22, subdivision 2, as amended; 
  1.21            124A.225, subdivision 4; 124C.46, subdivision 2; and 
  1.22            126.262, subdivision 2; Laws 1996, chapter 463, 
  1.23            section 4, subdivision 2; repealing Minnesota Statutes 
  1.24            1996, sections 124.223; 124.225, subdivisions 3a, 7a, 
  1.25            7b, 7d, 7e, 8a, and 8k; 124.226, subdivisions 1, 2, 3, 
  1.26            3a, 4, 5, and 7; and 124.273, subdivision 1f. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28     Section 1.  Minnesota Statutes 1996, section 124.17, 
  1.29  subdivision 1d, is amended to read: 
  1.30     Subd. 1d.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
  1.31  year 1993 1998 and thereafter must be computed according to this 
  1.32  subdivision.  
  1.33     (a) The AFDC concentration percentage for a district equals 
  1.34  the product of 100 times the ratio of:  
  1.35     (1) the number of pupils enrolled in the district from 
  1.36  families receiving aid to families with dependent children 
  2.1   according to subdivision 1e; to 
  2.2      (2) the number of pupils in average daily membership 
  2.3   according to subdivision 1e enrolled in the district. 
  2.4      (b) The AFDC pupil weighting factor for a district equals 
  2.5   the lesser of one or the quotient obtained by dividing the 
  2.6   district's AFDC concentration percentage by 11.5.  
  2.7      (c) The AFDC pupil units for a district for fiscal year 
  2.8   1993 1998 and thereafter equals the product of:  
  2.9      (1) the number of pupils enrolled in the district from 
  2.10  families receiving aid to families with dependent children 
  2.11  according to subdivision 1e; times 
  2.12     (2) the AFDC pupil weighting factor for the district; times 
  2.13     (3) .67. 
  2.14     (d) For a district with an AFDC concentration percentage 
  2.15  greater than 11.5 percent, the amount in paragraph (c) shall be 
  2.16  increased by the product of: 
  2.17     (1) the number of pupils enrolled in the district from 
  2.18  families receiving aid to families with dependent children, 
  2.19  according to subdivision 1e; and 
  2.20     (2) the quotient obtained by dividing the lesser of 33 or 
  2.21  the difference between the AFDC concentration percentage and 
  2.22  11.5 by 100. 
  2.23     Sec. 2.  Minnesota Statutes 1996, section 124.17, 
  2.24  subdivision 5, is amended to read: 
  2.25     Subd. 5.  [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 
  2.26  pupil who has not passed an assessment of basic graduation 
  2.27  standards in reading, writing, or mathematics is enrolled in a 
  2.28  mastery of basic skills summer school program that is not a part 
  2.29  of the regular school term and the student has a total 
  2.30  enrollment time of more than 1,020 hours in a school year, the 
  2.31  pupil may be counted as more than one pupil in average daily 
  2.32  membership for purposes of this subdivision only.  The amount in 
  2.33  excess of one pupil must be determined by the ratio of the 
  2.34  number of hours of instruction provided to that pupil in excess 
  2.35  of 1,020 hours.  For each pupil, only the amount of summer 
  2.36  school enrollment time attributable to basic skills instruction 
  3.1   may be used to calculate the additional hours in the school 
  3.2   year.  Basic skills instruction is defined as in Minnesota's 
  3.3   rules on graduation standards and includes reading, writing, and 
  3.4   mathematics.  Hours that occur after the close of the 
  3.5   instructional year in June shall be attributable to the 
  3.6   following fiscal year.  A pupil for whom payment is made under 
  3.7   this subdivision may be counted by a district only for the 
  3.8   computation of basic revenue, according to section 124A.22, 
  3.9   subdivision 2, minus $300 and operating capital revenue 
  3.10  according to section 124A.22, subdivision 10. 
  3.11     Sec. 3.  Minnesota Statutes 1996, section 124.225, 
  3.12  subdivision 1, is amended to read: 
  3.13     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
  3.14  and section 124.3201, the terms defined in this subdivision have 
  3.15  the meanings given to them. 
  3.16     (a) "FTE" means a full-time equivalent pupil whose 
  3.17  transportation is authorized for aid purposes by section 124.223.
  3.18     (b) "Authorized cost for regular transportation" 
  3.19  means "Actual expenditure per pupil transported in the regular 
  3.20  and excess transportation categories" means the quotient 
  3.21  obtained by dividing: 
  3.22     (1) the sum of: 
  3.23     (1) (i) all expenditures for transportation in the regular 
  3.24  category, as defined in paragraph (c) (b), clause (1), for which 
  3.25  aid is authorized in section 124.223 and the excess category, as 
  3.26  defined in paragraph (b), clause (2), plus 
  3.27     (2) (ii) an amount equal to one year's depreciation on the 
  3.28  district's school bus fleet and mobile units computed on a 
  3.29  straight line basis at the rate of 15 percent per year for 
  3.30  districts operating a program under section 121.585 for grades 1 
  3.31  to 12 for all students in the district and 12-1/2 percent per 
  3.32  year for other districts of the cost of the fleet, plus 
  3.33     (3) an amount equal to one year's depreciation on district 
  3.34  school buses reconditioned by the department of corrections 
  3.35  computed on a straight line basis at the rate of 33-1/3 percent 
  3.36  per year of the cost to the district of the reconditioning, plus 
  4.1      (4) (iii) an amount equal to one year's depreciation on the 
  4.2   district's type three school buses, as defined in section 
  4.3   169.01, subdivision 6, clause (5), which must be used a majority 
  4.4   of the time for the pupil transportation purposes in sections 
  4.5   124.223 and 124.226, subdivisions 5, 8, and 9, and were 
  4.6   purchased after July 1, 1982, for authorized transportation of 
  4.7   pupils, computed on a straight line basis at the rate of 20 
  4.8   percent per year of the cost of the type three school buses by: 
  4.9      (2) the number of pupils eligible for transportation in the 
  4.10  regular category, as defined in paragraph (b), clause (1), and 
  4.11  the excess category, as defined in paragraph (b), clause (2).  
  4.12     (c) (b) "Transportation category" means a category of 
  4.13  transportation service provided to pupils as follows:  
  4.14     (1) Regular transportation is transportation services 
  4.15  provided during the regular school year under section 124.223, 
  4.16  subdivisions 1 and 2, excluding the following transportation 
  4.17  services provided under section 124.223, subdivision 1:  
  4.18  transportation between schools; transportation to and from 
  4.19  service-learning programs; noon transportation to and from 
  4.20  school for kindergarten pupils attending half-day sessions; 
  4.21  transportation of pupils to and from schools located outside 
  4.22  their normal attendance areas under the provisions of a plan for 
  4.23  desegregation mandated by the state board of education or under 
  4.24  court order; and transportation of elementary pupils to and from 
  4.25  school within a mobility zone.: 
  4.26     (i) transportation to and from school during the regular 
  4.27  school year for resident elementary pupils residing one mile or 
  4.28  more from the public or nonpublic school they attend, and 
  4.29  resident secondary pupils residing two miles or more from the 
  4.30  public or nonpublic school they attend, excluding desegregation 
  4.31  transportation and noon kindergarten transportation; but with 
  4.32  respect to transportation of pupils to and from nonpublic 
  4.33  schools, only to the extent permitted by sections 123.76 to 
  4.34  123.79; 
  4.35     (ii) transportation of resident pupils to and from language 
  4.36  immersion programs; 
  5.1      (iii) transportation of a pupil who is a custodial parent 
  5.2   and that pupil's child between the pupil's home and the child 
  5.3   care provider and between the provider and the school, if the 
  5.4   home and provider are within the attendance area of the school; 
  5.5   and 
  5.6      (iv) transportation to and from or board and lodging in 
  5.7   another district, of resident pupils of a district without a 
  5.8   secondary school. 
  5.9      For the purposes of this paragraph, a district may 
  5.10  designate a licensed day care facility, respite care facility, 
  5.11  the residence of a relative, or the residence of a person chosen 
  5.12  by the pupil's parent or guardian as the home of a pupil for 
  5.13  part or all of the day, if requested by the pupil's parent or 
  5.14  guardian, and if that facility or residence is within the 
  5.15  attendance area of the school the pupil attends. 
  5.16     (2) Nonregular transportation is transportation services 
  5.17  provided under section 124.223, subdivision 1, that are excluded 
  5.18  from the regular category and transportation services provided 
  5.19  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
  5.20     (3) Excess transportation is transportation to and from 
  5.21  school during the regular school year for secondary pupils 
  5.22  residing at least one mile but less than two miles from the 
  5.23  public school they could attend or from the nonpublic school 
  5.24  actually attended they attend, and transportation to and from 
  5.25  school for pupils residing less than one mile from school who 
  5.26  are transported because of extraordinary traffic, drug, or crime 
  5.27  hazards. 
  5.28     (4) (3) Desegregation transportation is transportation 
  5.29  within and outside of the district during the regular school 
  5.30  year of pupils to and from schools located outside their normal 
  5.31  attendance areas under a plan for desegregation mandated by the 
  5.32  state board or under court order.  
  5.33     (5) Handicapped transportation is transportation provided 
  5.34  under section 124.223, subdivision 4, for pupils with a 
  5.35  disability between home or a respite care facility and school or 
  5.36  other buildings where special instruction required by sections 
  6.1   120.17 and 120.1701 is provided. 
  6.2      (4) "Transportation services for pupils with disabilities" 
  6.3   is: 
  6.4      (i) transportation of pupils with disabilities who cannot 
  6.5   be transported on a regular school bus between home or a respite 
  6.6   care facility and school; 
  6.7      (ii) necessary transportation of pupils with disabilities 
  6.8   from home or from school to other buildings, including centers 
  6.9   such as developmental achievement centers, hospitals, and 
  6.10  treatment centers where special instruction or services required 
  6.11  by sections 120.17 and 120.1701 are provided, within or outside 
  6.12  the district where services are provided; 
  6.13     (iii) necessary transportation for resident pupils with 
  6.14  disabilities required by sections 120.17, subdivision 4a, and 
  6.15  120.1701; 
  6.16     (iv) board and lodging for pupils with disabilities in a 
  6.17  district maintaining special classes; 
  6.18     (v) transportation from one educational facility to another 
  6.19  within the district for resident pupils enrolled on a 
  6.20  shared-time basis in educational programs, and necessary 
  6.21  transportation required by sections 120.17, subdivision 9, and 
  6.22  120.1701, for resident pupils with disabilities who are provided 
  6.23  special instruction and services on a shared-time basis; 
  6.24     (vi) transportation for resident pupils with disabilities 
  6.25  to and from board and lodging facilities when the pupil is 
  6.26  boarded and lodged for educational purposes; and 
  6.27     (vii) services described in clauses (i) to (vi), when 
  6.28  provided for pupils with disabilities in conjunction with a 
  6.29  summer instructional program that relates to the pupil's 
  6.30  individual education plan or in conjunction with a learning year 
  6.31  program established under section 121.585. 
  6.32     (5) "Nonpublic nonregular transportation" is: 
  6.33     (i) transportation from one educational facility to another 
  6.34  within the district for resident pupils enrolled on a 
  6.35  shared-time basis in educational programs, excluding 
  6.36  transportation for nonpublic pupils with disabilities under 
  7.1   clause (4); 
  7.2      (ii) transportation within district boundaries between a 
  7.3   nonpublic school and a public school or a neutral site for 
  7.4   nonpublic school pupils who are provided pupil support services 
  7.5   pursuant to section 123.935; and 
  7.6      (iii) late transportation home from school or between 
  7.7   schools within a district for nonpublic school pupils involved 
  7.8   in after-school activities. 
  7.9      (d) (c) "Mobile unit" means a vehicle or trailer designed 
  7.10  to provide facilities for educational programs and services, 
  7.11  including diagnostic testing, guidance and counseling services, 
  7.12  and health services.  A mobile unit located off nonpublic school 
  7.13  premises is a neutral site as defined in section 123.932, 
  7.14  subdivision 9. 
  7.15     (e) "Current year" means the school year for which aid will 
  7.16  be paid.  
  7.17     (f) "Base year" means the second school year preceding the 
  7.18  school year for which aid will be paid.  
  7.19     (g) "Base cost" means the ratio of: 
  7.20     (1) the sum of the authorized cost in the base year for 
  7.21  regular transportation as defined in paragraph (b) plus the 
  7.22  actual cost in the base year for excess transportation as 
  7.23  defined in paragraph (c); 
  7.24     (2) to the sum of the number of weighted FTE's in the 
  7.25  regular and excess categories in the base year. 
  7.26     (h) "Pupil weighting factor" for the excess transportation 
  7.27  category for a school district means the lesser of one, or the 
  7.28  result of the following computation: 
  7.29     (1) Divide the square mile area of the school district by 
  7.30  the number of FTE's in the regular and excess categories in the 
  7.31  base year. 
  7.32     (2) Raise the result in clause (1) to the one-fifth power. 
  7.33     (3) Divide four-tenths by the result in clause (2). 
  7.34     The pupil weighting factor for the regular transportation 
  7.35  category is one.  
  7.36     (i) "Weighted FTE's"  means the number of FTE's in each 
  8.1   transportation category multiplied by the pupil weighting factor 
  8.2   for that category. 
  8.3      (j) "Sparsity index" for a school district means the 
  8.4   greater of .005 or the ratio of the square mile area of the 
  8.5   school district to the sum of the number of weighted FTE's by 
  8.6   the district in the regular and excess categories in the base 
  8.7   year. 
  8.8      (k) "Density index" for a school district means the greater 
  8.9   of one or the result obtained by subtracting the product of the 
  8.10  district's sparsity index times 20 from two. 
  8.11     (l) "Contract transportation index" for a school district 
  8.12  means the greater of one or the result of the following 
  8.13  computation: 
  8.14     (1) Multiply the district's sparsity index by 20. 
  8.15     (2) Select the lesser of one or the result in clause (1). 
  8.16     (3) Multiply the district's percentage of regular FTE's in 
  8.17  the current year using vehicles that are not owned by the school 
  8.18  district by the result in clause (2). 
  8.19     (m) "Adjusted predicted base cost" means the predicted base 
  8.20  cost as computed in subdivision 3a as adjusted under subdivision 
  8.21  7a. 
  8.22     (n) "Regular transportation allowance" means the adjusted 
  8.23  predicted base cost, inflated and adjusted under subdivision 7b. 
  8.24     Sec. 4.  Minnesota Statutes 1996, section 124.225, 
  8.25  subdivision 13, is amended to read: 
  8.26     Subd. 13.  [TARGETED NEEDS TRANSPORTATION REVENUE.] A 
  8.27  district's targeted needs transportation revenue for the 
  8.28  1996-1997 1998-1999 and later school years equals the sum of the 
  8.29  special programs transportation revenue according to subdivision 
  8.30  14, the integration transportation revenue according to 
  8.31  subdivision 15, and the nonpublic pupil transportation revenue 
  8.32  aid according to subdivision 16. 
  8.33     Sec. 5.  Minnesota Statutes 1996, section 124.225, 
  8.34  subdivision 14, is amended to read: 
  8.35     Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
  8.36  district's special programs transportation revenue for the 
  9.1   1996-1997 and later 1997-1998 school years equals the sum of: 
  9.2      (a) the district's actual cost in the base year for 
  9.3   transportation services for children with disabilities under 
  9.4   section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
  9.5   paragraph (b), clause (4), times the ratio of the district's 
  9.6   average daily membership for the current school year to the 
  9.7   district's average daily membership for the base year; plus 
  9.8      (b) the greater of zero or 80 percent of the difference 
  9.9   between: 
  9.10     (1) the district's actual cost in the current year for 
  9.11  transportation services for children with disabilities under 
  9.12  section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
  9.13  paragraph (b), clause (4); and 
  9.14     (2) the amount computed in paragraph (a). 
  9.15     Sec. 6.  Minnesota Statutes 1996, section 124.225, 
  9.16  subdivision 15, is amended to read: 
  9.17     Subd. 15.  [INTEGRATION TRANSPORTATION REVENUE.] A 
  9.18  district's integration transportation revenue for the 1996-1997 
  9.19  and later school years year equals the following amounts: 
  9.20     (a) for independent school district No. 709, Duluth, $4 
  9.21  times the actual pupil units for the school year; 
  9.22     (b) for independent school district No. 625, St. Paul, $73 
  9.23  times the actual pupil units for the school year; and 
  9.24     (c) for special school district No. 1, Minneapolis, $158 
  9.25  times the actual pupil units for the school year. 
  9.26     A school district's integration transportation revenue for 
  9.27  the 1997-1998 school year and later equals its integration 
  9.28  transportation revenue amount for the previous year times 1.03. 
  9.29     Sec. 7.  Minnesota Statutes 1996, section 124.225, 
  9.30  subdivision 16, is amended to read: 
  9.31     Subd. 16.  [NONPUBLIC PUPIL AND CHARTER PUPIL 
  9.32  TRANSPORTATION REVENUE AID.] (a) A district's nonpublic 
  9.33  pupil and charter pupil transportation revenue aid for the 
  9.34  1996-1997 1998-1999 and later school years for transportation 
  9.35  services for nonpublic school pupils according to sections 
  9.36  123.39, 123.76 to 123.78, 124.223, and 124.226 this section, and 
 10.1   charter school pupils, equals the sum of the amounts computed in 
 10.2   paragraphs (b) and (c).  This revenue aid does not limit the 
 10.3   obligation to transport pupils under sections 123.76 to 123.79. 
 10.4      (b) For regular and excess transportation according to 
 10.5   section 124.225, subdivision 1, paragraph (c) (b), clauses (1) 
 10.6   and (3) (2), an amount equal to the product of: 
 10.7      (1) the district's actual expenditure per pupil transported 
 10.8   in the regular and excess transportation categories during the 
 10.9   second preceding school year; times 
 10.10     (2) the number of nonpublic school pupils residing in the 
 10.11  district and charter school pupils who receive regular or excess 
 10.12  transportation service or reimbursement for the current school 
 10.13  year; times 
 10.14     (3) the ratio of the formula allowance pursuant to section 
 10.15  124A.22, subdivision 2, for the current school year to the 
 10.16  formula allowance pursuant to section 124A.22, subdivision 2, 
 10.17  for the second preceding school year. 
 10.18     (c) For nonpublic and charter school nonregular 
 10.19  transportation according to section 124.225, subdivision 1, 
 10.20  paragraph (c) (b), clause (2) (5), excluding transportation 
 10.21  services for children with disabilities under section 124.223, 
 10.22  subdivisions 4, 5, 7, and 8, and late activity transportation 
 10.23  according to section 124.226, subdivision 9, an amount equal to 
 10.24  the product of: 
 10.25     (1) the district's actual expenditure for nonpublic and 
 10.26  charter school nonregular and late activity transportation for 
 10.27  nonpublic school pupils during the second preceding school year; 
 10.28  times 
 10.29     (2) the ratio of the formula allowance pursuant to section 
 10.30  124A.22, subdivision 2, for the current school year to the 
 10.31  formula allowance pursuant to section 124A.22, subdivision 2, 
 10.32  for the second preceding school year. 
 10.33     (d) Notwithstanding the amount of the formula allowance for 
 10.34  fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
 10.35  the commissioner shall use the amount of the formula allowance 
 10.36  less $300 in determining the nonpublic pupil transportation 
 11.1   revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.
 11.2      Sec. 8.  Minnesota Statutes 1996, section 124.226, 
 11.3   subdivision 9, is amended to read: 
 11.4      Subd. 9.  [LATE ACTIVITY BUSES.] (a) For taxes payable 
 11.5   in 1996 1998 and later, a school district may levy an amount 
 11.6   equal to the lesser of: 
 11.7      (1) the actual cost of late transportation home from 
 11.8   school, between schools within a district, or between schools in 
 11.9   one or more districts that have an agreement under sections 
 11.10  122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils and 
 11.11  parents involved in after school activities for the school year 
 11.12  beginning in the year the levy is certified; or 
 11.13     (2) two percent of the sum of the district's regular 
 11.14  transportation revenue and the district's nonregular 
 11.15  transportation revenue for that school year according to section 
 11.16  124.225, subdivision 7d. 
 11.17     (b) A district that levies under this section must provide 
 11.18  late transportation from school for students participating in 
 11.19  any academic-related activities provided by the district if 
 11.20  transportation is provided for students participating in 
 11.21  athletic activities. 
 11.22     (c) Notwithstanding section 121.904, 50 percent of the levy 
 11.23  certified for taxes payable in 1994, and for each year 
 11.24  thereafter the entire amount of this levy, shall be recognized 
 11.25  as revenue for the fiscal year in which the levy is certified. 
 11.26     Sec. 9.  Minnesota Statutes 1996, section 124.226, 
 11.27  subdivision 10, is amended to read: 
 11.28     Subd. 10.  [TARGETED NEEDS TRANSPORTATION LEVY.] A school 
 11.29  district may make a levy for targeted needs transportation costs 
 11.30  according to this subdivision.  The amount of the levy shall be 
 11.31  the result of the following computation: 
 11.32     (1) For fiscal year 1997 years 1999 and later, targeted 
 11.33  needs transportation levy equalization revenue equals 28 percent 
 11.34  of the sum of the district's special programs transportation 
 11.35  revenue under section 124.225, subdivision 14, and the 
 11.36  district's integration transportation revenue under section 
 12.1   124.225, subdivision 15. 
 12.2      (2) The targeted needs transportation levy equals the 
 12.3   result in clause (1) times the lesser of one or the ratio of (i) 
 12.4   the quotient derived by dividing the adjusted net tax capacity 
 12.5   of the district for the year before the year the levy is 
 12.6   certified by the actual pupil units in the district for the 
 12.7   school year to which the levy is attributable, to (ii) $3,540. 
 12.8      Sec. 10.  Minnesota Statutes 1996, section 124.2613, 
 12.9   subdivision 3, is amended to read: 
 12.10     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 12.11  shall rank all school sites with kindergarten programs that do 
 12.12  not exclusively serve students under section 120.17.  The 
 12.13  ranking must be from highest to lowest based on the site's free 
 12.14  and reduced lunch count as a percent of the fall enrollment 
 12.15  using the preceding October 1 enrollment data.  For each school 
 12.16  site, the percentage used to calculate the ranking must be the 
 12.17  greater of (1) the percent of the fall kindergarten enrollment 
 12.18  receiving free and reduced lunch, or (2) the percent of the 
 12.19  total fall enrollment receiving free and reduced lunch.  The 
 12.20  list of ranked sites must be separated into the following 
 12.21  geographic areas:  Minneapolis district, St. Paul district, 
 12.22  suburban Twin Cities districts in the seven-county metropolitan 
 12.23  area, and school districts in greater Minnesota. 
 12.24     (b) The commissioner shall establish a process and 
 12.25  timelines to qualify school sites for the next school year.  
 12.26  School sites must be qualified in each geographic area from the 
 12.27  list of ranked sites until the estimated revenue available for 
 12.28  this program has been allocated.  The total estimated revenue of 
 12.29  $3,500,000 must be distributed to qualified school sites in each 
 12.30  geographic area as follows:  25 percent for Minneapolis sites, 
 12.31  25 percent for St. Paul sites, 25 percent for suburban Twin 
 12.32  Cities sites, and 25 percent for greater Minnesota. 
 12.33     (c) Revenue amounts for the program are $3,500,000 for 
 12.34  fiscal year 1997 and $20,000,000 for fiscal years 1998 and 1999. 
 12.35     Sec. 11.  Minnesota Statutes 1996, section 124.2615, 
 12.36  subdivision 2, is amended to read: 
 13.1      Subd. 2.  [AMOUNT OF AID.] A district is eligible to 
 13.2   receive learning readiness aid if the program plan as required 
 13.3   by subdivision 1 has been approved by the commissioner of 
 13.4   children, families, and learning.  The aid is equal to: 
 13.5      (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
 13.6   times the number of eligible four-year old children residing in 
 13.7   the district, as determined according to section 124.2711, 
 13.8   subdivision 2; plus 
 13.9      (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
 13.10  times the result of; 
 13.11     (3) the ratio of the number of pupils enrolled in the 
 13.12  school district from families eligible for the free or reduced 
 13.13  school lunch program to the total number of pupils enrolled in 
 13.14  the school district; times 
 13.15     (4) the number of children in clause (1). 
 13.16     For fiscal year 1994 1998 and thereafter, a district shall 
 13.17  receive learning readiness aid equal to: 
 13.18     (1) the number of eligible four-year old children in the 
 13.19  district times the ratio of 50 35 percent of the total learning 
 13.20  readiness aid for that year to the total number of eligible 
 13.21  four-year old children reported to the commissioner for that 
 13.22  year; plus 
 13.23     (2) the number of participating eligible children times the 
 13.24  ratio of 15 percent of the total learning readiness aid for that 
 13.25  year to the total number of participating eligible children for 
 13.26  that year; plus 
 13.27     (3) the number of pupils enrolled in the school district 
 13.28  from families eligible for the free or reduced school lunch 
 13.29  program times the ratio of 35 50 percent of the total learning 
 13.30  readiness aid for that year to the total number of pupils in the 
 13.31  state from families eligible for the free or reduced school 
 13.32  lunch program. 
 13.33     Sec. 12.  Minnesota Statutes 1996, section 124.2711, 
 13.34  subdivision 1, is amended to read: 
 13.35     Subdivision 1.  [REVENUE.] The revenue for early childhood 
 13.36  family education programs for a school district equals 
 14.1   $101.25 $130 for 1993 1998 and later fiscal years times the 
 14.2   greater of: 
 14.3      (1) 150; or 
 14.4      (2) the number of people under five years of age residing 
 14.5   in the school district on October 1 of the previous school year. 
 14.6      Sec. 13.  Minnesota Statutes 1996, section 124.273, 
 14.7   subdivision 1d, is amended to read: 
 14.8      Subd. 1d.  [LEP BASE REVENUE.] (a) The For fiscal years 
 14.9   1998 and later, limited English proficiency programs base 
 14.10  revenue equals the sum of the following amounts, computed 
 14.11  using base current year data:  
 14.12     (1) 68 percent of the salary of one full-time equivalent 
 14.13  teacher for each 40 25 pupils of limited English proficiency 
 14.14  enrolled, or 68 percent of the salary of one-half of a full-time 
 14.15  teacher in a district with 20 ten or fewer pupils of limited 
 14.16  English proficiency enrolled; and 
 14.17     (2) for supplies and equipment purchased or rented for use 
 14.18  in the instruction of pupils of limited English proficiency an 
 14.19  amount equal to 47 percent of the sum actually spent by the 
 14.20  district but not to exceed an average of $47 in any one school 
 14.21  year for each pupil of limited English proficiency receiving 
 14.22  instruction; 
 14.23     (3) $100 times the number of limited English proficient 
 14.24  pupils residing in the district in the current year times the 
 14.25  lesser of one or the quotient of the ratio of the number of 
 14.26  limited English proficiency pupils residing in the district in 
 14.27  the current year to the number of pupils in average daily 
 14.28  membership residing in the district and 11.5 percent. 
 14.29     (b) For the purposes of this subdivision, a teacher 
 14.30  includes nonlicensed personnel who provide direct instruction to 
 14.31  students of limited English proficiency under the supervision of 
 14.32  a licensed teacher. 
 14.33     Sec. 14.  Minnesota Statutes 1996, section 124.273, 
 14.34  subdivision 1g, is amended to read: 
 14.35     Subd. 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
 14.36  district's limited English proficiency programs revenue for 
 15.1   fiscal year 1996 1998 and later equals the state total limited 
 15.2   English proficiency programs revenue, minus the amount 
 15.3   determined under paragraph (b), times the ratio of the 
 15.4   district's adjusted limited English proficiency programs base 
 15.5   revenue to the state total adjusted limited English proficiency 
 15.6   programs base revenue. 
 15.7      (b) Notwithstanding paragraph (a), if the limited English 
 15.8   proficiency programs base revenue for a district equals zero, 
 15.9   the limited English proficiency programs revenue equals the sum 
 15.10  of the following amounts, computed using current year data: 
 15.11     (1) 68 percent of the salary of one full-time equivalent 
 15.12  teacher for each 40 pupils of limited English proficiency 
 15.13  enrolled, or 68 percent of the salary of one-half of a full-time 
 15.14  teacher in a district with 20 or fewer pupils of limited English 
 15.15  proficiency enrolled; and 
 15.16     (2) for supplies and equipment purchased or rented for use 
 15.17  in the instruction of pupils of limited English proficiency an 
 15.18  amount equal to 47 percent of the sum actually spent by the 
 15.19  district but not to exceed an average of $47 in any one school 
 15.20  year for each pupil of limited English proficiency receiving 
 15.21  instruction amount calculated under subdivision 1d. 
 15.22     Sec. 15.  Minnesota Statutes 1996, section 124.273, is 
 15.23  amended by adding a subdivision to read: 
 15.24     Subd. 3.  [PREKINDERGARTEN PUPILS.] In counting the number 
 15.25  of pupils of limited English proficiency for purposes of this 
 15.26  section, districts may include prekindergarten children of 
 15.27  limited English proficiency who attend education programs in the 
 15.28  district. 
 15.29     Sec. 16.  Minnesota Statutes 1996, section 124.311, 
 15.30  subdivision 4, is amended to read: 
 15.31     Subd. 4.  [ELIGIBLE SERVICES.] Assurance of mastery revenue 
 15.32  must be used to provide direct instructional services to an 
 15.33  eligible pupil, or group of eligible pupils, under the following 
 15.34  conditions:  
 15.35     (a) Instruction may be provided at one or more grade levels 
 15.36  from kindergarten through grade 8 and for students in grades 9 
 16.1   through 12 who have failed the basic skills tests.  If an 
 16.2   assessment of pupils' needs within a district demonstrates that 
 16.3   the eligible pupils in grades kindergarten through 8 are being 
 16.4   appropriately served, a district may serve eligible pupils in 
 16.5   grades 9 through 12. 
 16.6      (b) Instruction must be provided under the supervision of 
 16.7   the eligible pupil's regular classroom teacher.  Instruction may 
 16.8   be provided by the eligible pupil's classroom teacher, by 
 16.9   another teacher, by a team of teachers, or by an education 
 16.10  assistant or aide.  A special education teacher may provide 
 16.11  instruction, but instruction that is provided under this section 
 16.12  is not eligible for aid under section 124.32.  
 16.13     (c) The instruction that is provided must differ from the 
 16.14  initial instruction the pupil received in the regular classroom 
 16.15  setting.  The instruction may differ by presenting different 
 16.16  curriculum than was initially presented in the regular 
 16.17  classroom, or by presenting the same curriculum:  
 16.18     (1) at a different rate or in a different sequence than it 
 16.19  was initially presented; 
 16.20     (2) using different teaching methods or techniques than 
 16.21  were used initially; or 
 16.22     (3) using different instructional materials than were used 
 16.23  initially. 
 16.24     Sec. 17.  Minnesota Statutes 1996, section 124.312, 
 16.25  subdivision 5, is amended to read: 
 16.26     Subd. 5.  [INTEGRATION AID.] (a) For fiscal year years 1996 
 16.27  and later fiscal years 1997 integration aid equals the following 
 16.28  amounts: 
 16.29     (1) for independent school district No. 709, Duluth, 
 16.30  $1,385,000; 
 16.31     (2) for independent school district No. 625, St. Paul, 
 16.32  $8,090,700; and 
 16.33     (3) for special school district No. 1, Minneapolis, 
 16.34  $9,368,300. 
 16.35     (b) For fiscal year 1998 and later, a district's 
 16.36  integration aid equals its aid amount for the previous fiscal 
 17.1   year times the ratio of the implicit price deflator for state 
 17.2   and local government purchases as prepared by the United States 
 17.3   Department of Commerce, for the most recently available year to 
 17.4   the previous year. 
 17.5      Sec. 18.  Minnesota Statutes 1996, section 124.3201, 
 17.6   subdivision 1, is amended to read: 
 17.7      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 17.8   section and sections 124.3202 and 124.321, the definitions in 
 17.9   this subdivision apply. 
 17.10     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
 17.11  means the 1994 summer program and the 1994-1995 school year.  
 17.12  Base year for later fiscal years means the second fiscal year 
 17.13  preceding the fiscal year for which aid will be paid. 
 17.14     (b) "Basic revenue" has the meaning given it in section 
 17.15  124A.22, subdivision 2.  For the purposes of computing basic 
 17.16  revenue pursuant to this section, each child with a disability 
 17.17  shall be counted as prescribed in section 124.17, subdivision 1. 
 17.18     (c) "Essential personnel" means teachers, related services, 
 17.19  and support services staff providing direct services to students.
 17.20     (d) "Average daily membership" has the meaning given it in 
 17.21  section 124.17. 
 17.22     (e) "Program growth factor" means 1.00 1.03 for fiscal year 
 17.23  1998 and later. 
 17.24     (f) "Aid percentage factor" means 60 percent for fiscal 
 17.25  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 17.26  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 17.27  percent for fiscal years 2000 and later. 
 17.28     (g) "Levy percentage factor" means 100 minus the aid 
 17.29  percentage factor for that year. 
 17.30     Sec. 19.  Minnesota Statutes 1996, section 124.3201, 
 17.31  subdivision 2, is amended to read: 
 17.32     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
 17.33  education base revenue equals the sum of the following amounts 
 17.34  computed using base year data: 
 17.35     (1) 68 percent of the salary of each essential person 
 17.36  employed in the district's program for children with a 
 18.1   disability during the regular school year, whether the person is 
 18.2   employed by one or more districts; 
 18.3      (2) for the Minnesota state academy for the deaf or the 
 18.4   Minnesota state academy for the blind, 68 percent of the salary 
 18.5   of each instructional aide assigned to a child attending the 
 18.6   academy, if that aide is required by the child's individual 
 18.7   education plan; 
 18.8      (3) for special instruction and services provided to any 
 18.9   pupil by contracting with public, private, or voluntary agencies 
 18.10  other than school districts, in place of special instruction and 
 18.11  services provided by the district, 52 percent of the difference 
 18.12  between the amount of the contract and the basic revenue of the 
 18.13  district for that pupil for the fraction of the school day the 
 18.14  pupil receives services under the contract; 
 18.15     (4) for special instruction and services provided to any 
 18.16  pupil by contracting for services with public, private, or 
 18.17  voluntary agencies other than school districts, that are 
 18.18  supplementary to a full educational program provided by the 
 18.19  school district, 52 percent of the amount of the contract for 
 18.20  that pupil; 
 18.21     (5) for supplies and equipment purchased or rented for use 
 18.22  in the instruction of children with a disability an amount equal 
 18.23  to 47 percent of the sum actually expended by the district but 
 18.24  not to exceed an average of $47 in any one school year for each 
 18.25  child with a disability receiving instruction; and 
 18.26     (6) for fiscal years 1997 and later, special education base 
 18.27  revenue shall include amounts under clauses (1) to (5) for 
 18.28  special education summer programs provided during the base year 
 18.29  for that fiscal year; and 
 18.30     (7) for fiscal years 1999 and later, the cost of providing 
 18.31  transportation services for children with disabilities under 
 18.32  section 124.225, subdivision 1, paragraph (b), clause (4). 
 18.33     Sec. 20.  Minnesota Statutes 1996, section 124.3201, 
 18.34  subdivision 2b, is amended to read: 
 18.35     Subd. 2b.  [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For 
 18.36  fiscal year 1996 1998 and later, a district's special education 
 19.1   court placement revenue is equal to 50 percent of the difference 
 19.2   between expenditures for teachers' salaries, contracted 
 19.3   services, supplies, and equipment eligible for revenues under 
 19.4   sections 124.3201 and 124.3202, in the base year and actual 
 19.5   expenditures for pupils with disabilities who receive services 
 19.6   pursuant to a court order. 
 19.7      Sec. 21.  Minnesota Statutes 1996, section 124.323, 
 19.8   subdivision 1, is amended to read: 
 19.9      Subdivision 1.  [DEFINITIONS.] In this section, the 
 19.10  definitions in this subdivision apply. 
 19.11     (a) "Unreimbursed special education cost" means the sum of 
 19.12  the following: 
 19.13     (1) expenditures for teachers' salaries, contracted 
 19.14  services, supplies, and equipment eligible for revenue under 
 19.15  sections 124.3201 and, 124.3202, and 124.273; plus 
 19.16     (2) expenditures for tuition bills received under section 
 19.17  120.17 for services eligible for revenue under sections 
 19.18  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 19.19     (3) revenue for teachers' salaries, contracted services, 
 19.20  supplies, and equipment under sections 124.3201 and, 124.3202, 
 19.21  and 124.273; minus 
 19.22     (4) tuition receipts under section 120.17 for services 
 19.23  eligible for revenue under sections 124.3201, subdivision 2, and 
 19.24  124.3202, subdivision 1. 
 19.25     (b) "General revenue," for fiscal year 1996, means the sum 
 19.26  of the general education revenue according to section 124A.22, 
 19.27  subdivision 1, as adjusted according to section 124A.036, 
 19.28  subdivision 5, plus the total referendum revenue according to 
 19.29  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 19.30  later, "general revenue" means the sum of the general education 
 19.31  revenue according to section 124A.22, subdivision 1, as adjusted 
 19.32  according to section 124A.036, subdivision 5, plus the total 
 19.33  referendum revenue minus transportation sparsity revenue minus 
 19.34  total operating capital revenue. 
 19.35     Sec. 22.  Minnesota Statutes 1996, section 124.323, 
 19.36  subdivision 2, is amended to read: 
 20.1      Subd. 2.  [EXCESS COST REVENUE.] For 1996 and later fiscal 
 20.2   years, A district's special education excess cost revenue equals 
 20.3   70 percent of the difference between (1) the district's 
 20.4   unreimbursed special education cost and (2) six percent for 
 20.5   fiscal year 1996 and 5.7 percent for fiscal year 1997 and later 
 20.6   years of the district's general revenue times the following 
 20.7   percentages:  80 percent for fiscal year 1998; 90 percent for 
 20.8   fiscal year 1999; and 100 percent for fiscal year 2000. 
 20.9      Sec. 23.  Minnesota Statutes 1996, section 124.912, 
 20.10  subdivision 2, is amended to read: 
 20.11     Subd. 2.  [DESEGREGATION.] Each year (a) For taxes payable 
 20.12  in 1997, special school district No. 1, Minneapolis, may levy an 
 20.13  amount not to exceed $197 times its actual pupil units for that 
 20.14  fiscal year; independent school district No. 625, St. Paul, may 
 20.15  levy an amount not to exceed $197 times its actual pupil units 
 20.16  for that fiscal year; and independent school district No. 709, 
 20.17  Duluth, may levy an amount not to exceed the sum of $660,000 and 
 20.18  the amount raised by a tax rate of 2.0 percent times the 
 20.19  adjusted net tax capacity of the district.  
 20.20     (b) For taxes payable in 1998 and later, a district's 
 20.21  desegregation levy equals its levy for the previous year times 
 20.22  1.03. 
 20.23     (c) Notwithstanding section 121.904, the entire amount of 
 20.24  this levy shall be recognized as revenue for the fiscal year in 
 20.25  which the levy is certified.  This levy shall not be considered 
 20.26  in computing the aid reduction under section 124.155. 
 20.27     Sec. 24.  Minnesota Statutes 1996, section 124A.032, is 
 20.28  amended to read: 
 20.29     124A.032 [ANNUAL FOUNDATION OR GENERAL EDUCATION AID 
 20.30  APPROPRIATION.] 
 20.31     There is annually appropriated from the general fund to the 
 20.32  department of children, families, and learning the amount 
 20.33  amounts necessary for: 
 20.34     (1) general education aid under section 124A.23; 
 20.35     (2) special education aid under sections 124.3201, 
 20.36  subdivision 6, and 124.323, subdivision 3; 
 21.1      (3) adult basic education aid under section 124.2601; 
 21.2      (4) adult graduation aid under section 124.261; and 
 21.3      (5) abatement aid under section 124.214, subdivision 2.  
 21.4      This amount shall be reduced by the amount of any money 
 21.5   specifically appropriated for the same purpose in any year from 
 21.6   any state fund.  
 21.7      Sec. 25.  Minnesota Statutes 1996, section 124A.22, 
 21.8   subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 
 21.9   amended to read: 
 21.10     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 21.11  district equals the formula allowance times the actual pupil 
 21.12  units for the school year.  The formula allowance for fiscal 
 21.13  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
 21.14  is $3,205.  The formula allowance for fiscal year 1997 and 
 21.15  subsequent fiscal years is $3,505.  The formula allowance for 
 21.16  fiscal year 1998 is $3,610.  The formula allowance for fiscal 
 21.17  year 1999 and subsequent fiscal years is $3,718. 
 21.18     Sec. 26.  Minnesota Statutes 1996, section 124A.225, 
 21.19  subdivision 4, is amended to read: 
 21.20     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 21.21  to either paragraph (b), or (c), or (d). 
 21.22     (b) Revenue shall be used to reduce and maintain the 
 21.23  district's instructor to learner ratios in kindergarten through 
 21.24  grade 6 to a level of 1 to 17 on average. The district must 
 21.25  prioritize the use of the revenue to attain this level initially 
 21.26  in kindergarten and grade 1 and then through the subsequent 
 21.27  grades as revenue is available.  
 21.28     (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
 21.29  district with exceptional need as defined in subdivision 6, 
 21.30  paragraph (a), may use the revenue to reduce and maintain the 
 21.31  district's instructor-to-learner ratios in kindergarten through 
 21.32  grade 6 to a level that is at least 2.0 less than the district's 
 21.33  adopted staffing ratio, if the remaining learning and 
 21.34  development revenue is used to continue or initiate staffing 
 21.35  patterns that meet the needs of a diverse student population.  
 21.36  Programs to meet the needs of a diverse student population may 
 22.1   include programs for at-risk pupils and learning enrichment 
 22.2   programs. 
 22.3      (d) For fiscal year 1995 only, in any school building that 
 22.4   meets the characteristics of exceptional need as defined in 
 22.5   subdivision 6, paragraph (b), a district may use the revenue to 
 22.6   employ education assistants or aides supervised by a learner's 
 22.7   regular instructor to assist learners in those school buildings. 
 22.8      (e) The revenue may be used to prepare and use an 
 22.9   individualized learning plan for each learner.  A district must 
 22.10  not increase the district wide instructor-learner ratios in 
 22.11  other grades as a result of reducing instructor-learner ratios 
 22.12  in kindergarten through grade 6.  Revenue may not be used to 
 22.13  provide instructor preparation time or to provide the district's 
 22.14  share of revenue required under section 124.311.  A school 
 22.15  district may use a portion of the revenue reserved under this 
 22.16  section to employ up to the same number of full-time equivalent 
 22.17  education assistants or aides as the district employed during 
 22.18  the 1992-1993 school year under Minnesota Statutes 1992, section 
 22.19  124.331, subdivision 2.  A school district may use a portion of 
 22.20  the revenue reserved under this section to employ education 
 22.21  assistants or aides who work with limited English proficient 
 22.22  students. 
 22.23     Sec. 27.  Minnesota Statutes 1996, section 124C.46, 
 22.24  subdivision 2, is amended to read: 
 22.25     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 22.26  programs for secondary pupils and adults, giving priority to 
 22.27  serving persons between 16 and 21 years of age.  Secondary 
 22.28  pupils to be served are those who are chemically dependent, not 
 22.29  likely to graduate from high school, need assistance in 
 22.30  vocational and basic skills, can benefit from employment 
 22.31  experiences, and need assistance in transition from school to 
 22.32  employment.  Adults to be served are dislocated homemakers and 
 22.33  workers and others who need basic educational and social 
 22.34  services.  In addition to offering programs, the center shall 
 22.35  coordinate the use of other available educational services, 
 22.36  social services, and post-secondary institutions in the 
 23.1   community.  The center may also provide programs, including 
 23.2   work-based, service-learning, and applied learning opportunities 
 23.3   developed in collaboration with a local education and employment 
 23.4   transitions partnership, for elementary and secondary pupils who 
 23.5   are not attending the center to assist them in completing high 
 23.6   school.  The center may also provide programs according to 
 23.7   sections 126.261 to 126.269 for pupils in prekindergarten 
 23.8   through grade 12 who are of limited English proficiency. 
 23.9      Sec. 28.  Minnesota Statutes 1996, section 126.262, 
 23.10  subdivision 2, is amended to read: 
 23.11     Subd. 2.  "Pupil of limited English proficiency" means a 
 23.12  pupil in any of the grades of kindergarten prekindergarten 
 23.13  through 12 who meets the following requirements:  
 23.14     (a) The pupil, as declared by a parent or guardian (1) 
 23.15  first learned a language other than English, (2) comes from a 
 23.16  home where the language usually spoken is other than English, or 
 23.17  (3) usually speaks a language other than English; and 
 23.18     (b) The pupil's score is significantly below the average 
 23.19  district score for pupils of the same age on a nationally normed 
 23.20  English reading or English language arts achievement test.  A 
 23.21  pupil's score shall be considered significantly below the 
 23.22  average district score for pupils of the same age if it is 
 23.23  one-third of a standard deviation below that average score.  
 23.24     Sec. 29.  Laws 1996, chapter 463, section 4, subdivision 2, 
 23.25  is amended to read: 
 23.26  Subd. 2.  Youth Initiative Grants                    16,000,000 
 23.27  For grants to local government units to 
 23.28  design, furnish, equip, acquire, 
 23.29  relocate, repair, replace, or construct 
 23.30  parks and recreation buildings and 
 23.31  school buildings to provide youth, with 
 23.32  preference for youth in grades four 
 23.33  through eight, with regular enrichment 
 23.34  activities during nonschool hours, 
 23.35  including after school, evenings, 
 23.36  weekends, and school vacation periods, 
 23.37  and that will provide equal access and 
 23.38  programming for girls.  The buildings 
 23.39  may be leased to nonprofit community 
 23.40  organizations, subject to Minnesota 
 23.41  Statutes, section 16A.695, for the same 
 23.42  purposes.  Enrichment programs include 
 23.43  academic enrichment, homework 
 23.44  assistance, computer and technology 
 23.45  use, arts and cultural activities, 
 24.1   clubs, school-to-work and work force 
 24.2   development, athletic, and recreational 
 24.3   activities.  Grants must be used to 
 24.4   expand the number of children 
 24.5   participating in enrichment programs or 
 24.6   improve the quality or range of program 
 24.7   offerings.  The facilities must be 
 24.8   fully available for programming 
 24.9   sponsored by youth-serving nonprofit 
 24.10  and community groups, or school, 
 24.11  county, or city programs, for maximum 
 24.12  hours after school, evenings, weekends, 
 24.13  summers, and other school vacation 
 24.14  periods.  Priority must be given to 
 24.15  proposals that demonstrate 
 24.16  collaboration among private, nonprofit, 
 24.17  and public agencies, including regional 
 24.18  entities dealing with at-risk youth, 
 24.19  and community and parent organizations 
 24.20  in arranging for programming, staffing, 
 24.21  transportation, and equipment.  All 
 24.22  proposals must include an inventory of 
 24.23  existing facilities and an assessment 
 24.24  of programming needs in the community. 
 24.25  (a) Enrichment grants within the
 24.26  city of Minneapolis                                   5,000,000
 24.27  Of this amount, at least $2,500,000 
 24.28  must be used in the neighborhoods of 
 24.29  the Near North Side, Hawthorne, 
 24.30  Sumner-Glenwood, Powderhorn, Central, 
 24.31  Whittier, and Phillips. 
 24.32  (b) Enrichment grants within the 
 24.33  city of St. Paul                                      5,000,000
 24.34  Of this amount, at least $2,500,000 
 24.35  must be used in the neighborhoods of 
 24.36  Summit-University, Thomas-Dale, North 
 24.37  End, Payne-Phalen, Daytons Bluff, and 
 24.38  the West Side. 
 24.39  The remaining $2,500,000 is available 
 24.40  citywide, with priority for some of the 
 24.41  remaining amount given to proposals by 
 24.42  public/private partnerships currently 
 24.43  offering after-school enrichment 
 24.44  programs in low-income areas in 
 24.45  conjunction with a neighborhood-based 
 24.46  organization. Up to $100,000 of the 
 24.47  remaining $2,500,000 may be used to 
 24.48  develop urban sports facilities for 
 24.49  at-risk inner city youth, including 
 24.50  those older than eighth grade. 
 24.51  (c) Enrichment grants outside 
 24.52  of the cities of Minneapolis 
 24.53  and St. Paul                                         6,000,000
 24.54  Priority must be given to school 
 24.55  attendance areas with high 
 24.56  concentrations of children eligible for 
 24.57  free or reduced school lunch and to 
 24.58  government units demonstrating a 
 24.59  commitment to collaborative youth 
 24.60  efforts. 
 24.61  $500,000 is to the city of Bloomington 
 24.62  for after school enrichment activities 
 24.63  in the northeast Bloomington study area.
 25.1   The commissioner of children, families, 
 25.2   and learning must make a grant of at 
 25.3   least $1,000,000 to a school district 
 25.4   that is a part of a collaborative 
 25.5   effort that has at least two other 
 25.6   school districts, is multicultural and 
 25.7   multijurisdictional, and has previously 
 25.8   received a facility planning grant for 
 25.9   collaborative purposes. 
 25.10  (d) Each grant must be matched by $1 
 25.11  from local sources for each $2 of state 
 25.12  money.  In-kind contributions of 
 25.13  facilities may be used for the local 
 25.14  match.  The value of in-kind 
 25.15  contributions must be determined by the 
 25.16  commissioner of finance.  
 25.17  (e) Preference must be given to 
 25.18  projects for which at least ten percent 
 25.19  of the youth initiative grant is 
 25.20  expended using youthbuild under 
 25.21  Minnesota Statutes, sections 268.361 to 
 25.22  268.367, or other youth employment and 
 25.23  training programs, for the labor 
 25.24  portion of the construction.  Eligible 
 25.25  programs must consult with appropriate 
 25.26  labor organizations to deliver 
 25.27  education and training. 
 25.28     Sec. 30.  [COMMUNITY SCHOOL GRANTS.] 
 25.29     Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
 25.30  year 1998 is established to assist districts in operating 
 25.31  community schools. 
 25.32     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
 25.33  school district that intends to operate a community school that: 
 25.34     (1) offers an extended day during 12 months of the year; 
 25.35     (2) improves student achievement; 
 25.36     (3) serves an attendance area in which the percentage of 
 25.37  resident students eligible to receive free or reduced price 
 25.38  lunch is greater than the percentage district-wide; 
 25.39     (4) provides collaborative health, social services, 
 25.40  recreational, and other related programs; 
 25.41     (5) is managed by a nonprofit organization under contract 
 25.42  with the district; and 
 25.43     (6) includes site-based management in its governance 
 25.44  structure and involves program providers. 
 25.45     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant program 
 25.46  to assist districts in operating community schools, a school 
 25.47  district must submit an application to the commissioner of 
 25.48  children, families, and learning in the form and manner the 
 26.1   commissioner establishes.  The application must describe how the 
 26.2   applicant will structure its community school according to the 
 26.3   eligibility criteria under subdivision 2, and provide the 
 26.4   following additional information: 
 26.5      (1) the name and address of the school and whether the 
 26.6   school is a new school or an existing school converted for this 
 26.7   purpose; 
 26.8      (2) the grade level and number of students to be served; 
 26.9      (3) a socioeconomic profile of the school attendance area 
 26.10  and its residents, including student residents, and how that 
 26.11  profile compares with the district profile; 
 26.12     (4) the education curriculum and related programs the 
 26.13  school will offer; 
 26.14     (5) the school's educational goals and the measures it will 
 26.15  use to determine student and school outcomes; 
 26.16     (6) a budget and operating plan that includes a governance 
 26.17  structure premised on parent involvement; 
 26.18     (7) a copy of the contract with the nonprofit agency 
 26.19  managing the school and the agencies serving the school's 
 26.20  students; and 
 26.21     (8) documents indicating community-based and local 
 26.22  government support.  
 26.23     The commissioner may require additional information from an 
 26.24  applicant. 
 26.25     Subd. 4.  [GRANT AWARDS; PROCEEDS.] The commissioner may 
 26.26  award up to ... grants.  The amount of a grant shall be based on 
 26.27  the number of students the grant recipient anticipates will 
 26.28  enroll in the community school and on the costs the grant 
 26.29  recipient will incur in initiating its program.  A grant 
 26.30  recipient shall use the grant proceeds to accomplish the 
 26.31  purposes of this section. 
 26.32     Sec. 31.  [YEAR-ROUND SCHOOL GRANTS.] 
 26.33     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
 26.34  established to encourage school districts to offer students the 
 26.35  option of attending school year-round. 
 26.36     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
 27.1   school district that offers students opportunities to attend 
 27.2   school year-round.  The applicant must adopt a policy that 
 27.3   describes the opportunities available to students to attend 
 27.4   school year-round and how teachers coordinate educational 
 27.5   programs and provide instruction throughout the entire year. 
 27.6      Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to offer 
 27.7   students opportunities to attend school year-round, a school 
 27.8   district must submit an application to the commissioner of 
 27.9   children, families, and learning in the form and manner the 
 27.10  commissioner establishes.  The application must describe how the 
 27.11  applicant will structure its year-round school program and how 
 27.12  teachers will coordinate educational programs and provide 
 27.13  instruction throughout the entire year.  The commissioner may 
 27.14  require additional information from an applicant. 
 27.15     Subd. 4.  [GRANT AWARDS; PROCEEDS.] The commissioner may 
 27.16  award up to ... grants.  The amount of a grant shall be based on 
 27.17  the number of students the grant recipient anticipates will 
 27.18  participate in its year-round school program and the additional 
 27.19  costs the grant recipient incurs in providing the program.  A 
 27.20  grant recipient shall use the grant proceeds to pay additional 
 27.21  operating costs, including transportation costs and make 
 27.22  appropriate building modifications needed to operate in the 
 27.23  summer and comply with the requirements of the fire marshal. 
 27.24     Sec. 32.  [APPROPRIATIONS.] 
 27.25     Subdivision 1.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
 27.26  LEARNING.] The sums indicated in this section are appropriated 
 27.27  from the general fund to the commissioner of children, families, 
 27.28  and learning for the fiscal years indicated. 
 27.29     Subd. 2.  [PROFESSIONAL DEVELOPMENT.] For grants for 
 27.30  professional development funding: 
 27.31       $10,000,000     .....     1998 
 27.32       $10,000,000     .....     1999 
 27.33     The commissioner shall establish a grant application 
 27.34  process and may award grants to school districts of up to $10 
 27.35  per pupil unit for professional development activities.  
 27.36  Professional development activities for staff and administrators 
 28.1   include assistance in developing and implementing a 
 28.2   standards-based education program that includes the profiles of 
 28.3   learning. 
 28.4      Any balance remaining in the first year does not cancel but 
 28.5   is available in the second year. 
 28.6      Subd. 3.  [COMMUNITY SCHOOL GRANTS.] For community school 
 28.7   grants under section 30: 
 28.8        $3,000,000     .....     1998
 28.9      This appropriation is available until June 30, 1999. 
 28.10     Subd. 4.  [UNIFIED SERVICES PLANNING GRANT.] For a grant to 
 28.11  special school district No. 1, Minneapolis, for developing a 
 28.12  unified system for delivering special needs services, including 
 28.13  special education, limited English proficiency, and other 
 28.14  programs for children with learning difficulties: 
 28.15       $50,000     .....     1998 
 28.16     A unified services delivery system must include: 
 28.17     (1) early identification and early intervention; 
 28.18     (2) a focus on individual barriers to learning; 
 28.19     (3) service delivery in regular education classrooms or 
 28.20  sites through enhanced professional development and support; 
 28.21     (4) a focus on student achievement rather than process; 
 28.22     (5) a blended funding stream; and 
 28.23     (6) flexibility. 
 28.24     This appropriation is available until June 30, 1999. 
 28.25     Subd. 5.  [CAPITAL GRANT FOR WEST METRO EDUCATION PROGRAM.] 
 28.26  For a grant to the fiscal agent for the west metro education 
 28.27  program for additional capital expenses associated with the 
 28.28  downtown interdistrict desegregation magnet school: 
 28.29       $3,000,000     .....     1998 
 28.30     This appropriation is available until June 30, 1999. 
 28.31     Subd. 6.  [YEAR-ROUND SCHOOL GRANTS.] For year-round school 
 28.32  grants under section 31: 
 28.33       $3,000,000     .....     1998
 28.34     This appropriation is available until June 30, 1999. 
 28.35     Subd. 7.  [INTEGRATION PROGRAMS.] For the following grants: 
 28.36  minority fellowship grants under Laws 1994, chapter 647, article 
 29.1   8, section 29; minority teacher incentives under Minnesota 
 29.2   Statutes, section 124.278; teacher of color grants under 
 29.3   Minnesota Statutes, section 125.623; and cultural exchange 
 29.4   grants under Minnesota Statutes, section 126.43: 
 29.5        $2,000,000     .....     1998
 29.6        $2,000,000     .....     1999
 29.7      In awarding grants, the commissioner shall give priority to 
 29.8   students of color who enroll in teacher preparation programs and 
 29.9   to districts that recruit paraprofessionals of color employed in 
 29.10  the district to become teachers. 
 29.11     Subd. 8.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 29.12  program grants: 
 29.13       $3,000,000     .....     1998
 29.14       $3,000,000     .....     1999
 29.15     School districts currently implementing magnet schools and 
 29.16  magnet programs may use this appropriation to expand voluntary 
 29.17  integration efforts that provide more public school choices. 
 29.18     Subd. 9.  [FIRST-GRADE PREPAREDNESS.] For first-grade 
 29.19  preparedness programs according to section 124.2613: 
 29.20       $20,000,000     .....     1998 
 29.21       $20,000,000     .....     1999 
 29.22     Subd. 10.  [LEARNING READINESS AID.] For learning readiness 
 29.23  aid according to section 124.2615: 
 29.24       $14,449,000     .....     1998 
 29.25       $15,000,000     .....     1999
 29.26     The 1998 appropriation includes $949,000 for fiscal year 
 29.27  1997 and $13,500,000 for fiscal year 1998.  The 1999 
 29.28  appropriation includes $1,500,000 for fiscal year 1998 and 
 29.29  $13,500,000 for fiscal year 1999. 
 29.30     Subd. 11.  [WILDER PROJECT CAPITAL GRANT.] For a capital 
 29.31  grant to a school district developing a community school under 
 29.32  section 30: 
 29.33       $3,000,000     .....     1998 
 29.34     This appropriation is available until June 30, 1999. 
 29.35     Subd. 12.  [ECFE REVENUE.] For early childhood family 
 29.36  education revenue according to section 124.2711: 
 30.1        $20,727,000     .....     1998 
 30.2        $21,560,000     .....     1999
 30.3      The 1998 appropriation includes $1,357,000 for fiscal year 
 30.4   1997 and $19,370,000 for fiscal year 1998.  The 1999 
 30.5   appropriation includes $2,156,000 for fiscal year 1998 and 
 30.6   $19,404,000 for fiscal year 1999. 
 30.7      Subd. 13.  [LEP REVENUE.] For limited English proficiency 
 30.8   programs under section 124.273: 
 30.9        $14,679,000     .....     1998
 30.10       $18,620,000     .....     1999
 30.11     The 1998 appropriation includes $930,000 for fiscal year 
 30.12  1997 and $13,749,000 for fiscal year 1999.  The 1999 
 30.13  appropriation includes $1,332,000 for fiscal year 1998 and 
 30.14  $17,103,000 for fiscal year 1999.  
 30.15     Subd. 14.  [PERFORMANCE GRANTS.] For performance grants 
 30.16  under Laws 1994, chapter 647, article 7, section 18: 
 30.17       $1,600,000     .....     1998 
 30.18     This appropriation is available until June 30, 1999. 
 30.19     Sec. 33.  [REPEALER.] 
 30.20     Subdivision 1.  [TRANSPORTATION.] Minnesota Statutes 1996, 
 30.21  sections 124.223; 124.225, subdivisions 3a, 7a, 7b, 7d, 7e, 8a, 
 30.22  and 8k; and 124.226, subdivisions 1, 2, 3, 3a, 4, 5, and 7, are 
 30.23  repealed July 1, 1997. 
 30.24     Subd. 2.  [LEP REVENUE.] Minnesota Statutes 1996, section 
 30.25  124.273, subdivision 1f, is repealed for revenue for fiscal year 
 30.26  1998. 
 30.27     Sec. 34.  [EFFECTIVE DATE.] 
 30.28     Subdivision 1.  [JULY 1, 1997.] Sections 1, 5, 16, 18, 21, 
 30.29  22, 23, 25, 26, 29, 30, and 31 are effective July 1, 1997. 
 30.30     Subd. 2.  [REVENUE FOR FISCAL YEAR 1998.] Sections 2, 6, 
 30.31  10, 11, 12, 13, 14, 15, 17, 20, 24, 27, and 28 are effective for 
 30.32  revenue for fiscal year 1998. 
 30.33     Subd. 3.  [REVENUE FOR FISCAL YEAR 1999.] Sections 3, 4, 7, 
 30.34  8, 9, and 19 are effective for revenue for fiscal year 1999.