1.1                          A bill for an act 
  1.2             relating to education; changing certain definitions, 
  1.3             formulas, financial requirements, appropriations, and 
  1.4             levy requirements; creating certain programs; 
  1.5             providing for grants and program implementation; 
  1.6             authorizing certain fund transfers and adjustments; 
  1.7             requiring an unemployment insurance election; amending 
  1.8             Minnesota Statutes 2002, sections 120A.05, by adding a 
  1.9             subdivision; 123A.05, subdivision 2; 123B.12; 123B.75, 
  1.10            by adding a subdivision; 124D.68, subdivision 9; 
  1.11            124D.69, subdivision 1; 126C.05, by adding a 
  1.12            subdivision; 126C.15, subdivisions 2, 3, by adding a 
  1.13            subdivision; 126C.21, subdivision 4; 126C.48, 
  1.14            subdivision 8; 128D.11, subdivision 9; Minnesota 
  1.15            Statutes 2003 Supplement, sections 16A.152, 
  1.16            subdivision 2; 123B.54; 124D.095, subdivision 8; 
  1.17            124D.11, subdivisions 1, 2; 124D.1158, subdivision 3; 
  1.18            124D.118, subdivision 4; 125A.79, subdivision 1; 
  1.19            126C.10, subdivision 31; 126C.15, subdivision 1; 
  1.20            126C.63, subdivision 8; 127A.47, subdivisions 7, 8; 
  1.21            Laws 2003, First Special Session chapter 9, article 1, 
  1.22            section 53, subdivisions 2, 3, 5, 6, 11, 12; Laws 
  1.23            2003, First Special Session chapter 9, article 2, 
  1.24            section 55, subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16; 
  1.25            Laws 2003, First Special Session chapter 9, article 3, 
  1.26            section 20, subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, 
  1.27            First Special Session chapter 9, article 4, section 
  1.28            29; Laws 2003, First Special Session chapter 9, 
  1.29            article 4, section 31, subdivisions 2, 3; Laws 2003, 
  1.30            First Special Session chapter 9, article 5, section 
  1.31            35, subdivisions 2, 3; Laws 2003, First Special 
  1.32            Session chapter 9, article 6, section 4; Laws 2003, 
  1.33            First Special Session chapter 9, article 10, section 
  1.34            10, subdivision 2; Laws 2003, First Special Session 
  1.35            chapter 9, article 10, section 11; Laws 2003, First 
  1.36            Special Session chapter 9, article 10, section 12; 
  1.37            proposing coding for new law in Minnesota Statutes, 
  1.38            chapters 120B; 125B; 127A. 
  1.39  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA. 
  1.40                             ARTICLE 1 
  1.41                         GENERAL EDUCATION
  1.42     Section 1.  Minnesota Statutes 2002, section 120A.05, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 18.  [KINDERGARTEN.] "Kindergarten" means a program 
  2.3   designed for pupils five years of age on September 1 of the 
  2.4   calendar year in which the school year commences that prepares 
  2.5   pupils to enter first grade the following school year.  A 
  2.6   program designed for pupils younger than five years of age on 
  2.7   September 1 of the calendar year in which the school year 
  2.8   commences that prepares pupils to enter kindergarten the 
  2.9   following school year is a prekindergarten program. 
  2.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.11  following final enactment. 
  2.12     Sec. 2.  Minnesota Statutes 2002, section 123A.05, 
  2.13  subdivision 2, is amended to read: 
  2.14     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
  2.15  of an area learning center must reserve revenue in an amount 
  2.16  equal to the sum of (1) at least 90 percent of the district 
  2.17  average general education revenue per pupil unit minus an amount 
  2.18  equal to the product of the formula allowance according to 
  2.19  section 126C.10, subdivision 2, times .0485, calculated without 
  2.20  basic skills revenue, transportation sparsity revenue, and the 
  2.21  transportation portion of the transition revenue adjustment, 
  2.22  times the number of pupil units attending an area learning 
  2.23  center program under this section, plus (2) the amount of basic 
  2.24  skills revenue generated by pupils attending the area learning 
  2.25  center.  The amount of reserved revenue under this subdivision 
  2.26  may only be spent on program costs associated with the area 
  2.27  learning center.  Compensatory revenue must be allocated 
  2.28  according to section 126C.15, subdivision 2.  
  2.29     Sec. 3.  Minnesota Statutes 2002, section 123B.75, is 
  2.30  amended by adding a subdivision to read: 
  2.31     Subd. 4a.  [TACONITE REVENUE.] Taconite revenue received in 
  2.32  a calendar year by a school district under section 298.28, 
  2.33  subdivisions 4b, 4c, and 11d, is fully recognized in the fiscal 
  2.34  year in which the February payment falls. 
  2.35     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
  2.36  from July 1, 2003, for school district revenue for fiscal year 
  3.1   2004. 
  3.2      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.3   124D.095, subdivision 8, is amended to read: 
  3.4      Subd. 8.  [FINANCIAL ARRANGEMENTS.] (a) For a student 
  3.5   enrolled in an on-line learning course, the department must 
  3.6   calculate average daily membership and make payments according 
  3.7   to this subdivision. 
  3.8      (b) The initial on-line learning average daily membership 
  3.9   equals 1/12 for each semester course or a proportionate amount 
  3.10  for courses of different lengths.  The adjusted on-line learning 
  3.11  average daily membership equals the initial on-line learning 
  3.12  average daily membership times .88. 
  3.13     (c) No on-line learning average daily membership shall be 
  3.14  generated if:  (1) the student does not complete the on-line 
  3.15  learning course, or (2) the student is enrolled in on-line 
  3.16  learning provided by the enrolling district and the student 
  3.17  was either enrolled in a Minnesota public school for the school 
  3.18  year before the school year in which the student first enrolled 
  3.19  in on-line learning, or the student is enrolled in an 
  3.20  instructional program in which at least 40 percent of the total 
  3.21  instructional time takes place in the school's facilities.  For 
  3.22  students enrolled in on-line learning according to clause (2), 
  3.23  the department shall calculate average daily membership 
  3.24  according to section 126C.05, subdivision 8. 
  3.25     (d) On-line learning average daily membership under this 
  3.26  subdivision for a student currently enrolled in a Minnesota 
  3.27  public school and who was enrolled in a Minnesota public school 
  3.28  for the school year before the school year in which the student 
  3.29  first enrolled in on-line learning shall be used only for 
  3.30  computing average daily membership according to section 126C.05, 
  3.31  subdivision 19, paragraph (a), clause (ii) (2), and for 
  3.32  computing on-line learning aid according to section 126C.24. 
  3.33     (e) On-line learning average daily membership under this 
  3.34  subdivision for students not included in paragraph (c) or (d) 
  3.35  shall be used only for computing average daily membership 
  3.36  according to section 126C.05, subdivision 19, paragraph (a), 
  4.1   clause (ii) (2), and for computing payments under paragraphs (f) 
  4.2   and (g). 
  4.3      (f) Subject to the limitations in this subdivision, the 
  4.4   department must pay an on-line learning provider an amount equal 
  4.5   to the product of the adjusted on-line learning average daily 
  4.6   membership for students under paragraph (e) times the student 
  4.7   grade level weighting under section 126C.05, subdivision 1, 
  4.8   times the formula allowance. 
  4.9      (g) The department must pay each on-line learning provider 
  4.10  100 percent of the amount in paragraph (f) within 45 days of 
  4.11  receiving final enrollment and course completion information 
  4.12  each quarter or semester. 
  4.13     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  4.14  124D.11, subdivision 1, is amended to read: 
  4.15     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  4.16  education revenue must be paid to a charter school as though it 
  4.17  were a district.  The general education revenue for each 
  4.18  adjusted marginal cost pupil unit is the state average general 
  4.19  education revenue per pupil unit, plus the referendum 
  4.20  equalization aid allowance in the pupil's district of residence, 
  4.21  minus an amount equal to the product of the formula allowance 
  4.22  according to section 126C.10, subdivision 2, times .0485, 
  4.23  calculated without basic skills revenue, extended time revenue, 
  4.24  transition revenue, and transportation sparsity revenue, plus 
  4.25  basic skills revenue and transition revenue as though the school 
  4.26  were a school district.  The general education revenue for each 
  4.27  extended time marginal cost pupil unit equals $4,378. 
  4.28     (b) Notwithstanding paragraph (a), for charter schools in 
  4.29  the first year of operation, general education revenue shall be 
  4.30  computed using the number of adjusted pupil units in the current 
  4.31  fiscal year.  
  4.32     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  4.33  124D.11, subdivision 2, is amended to read: 
  4.34     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
  4.35  must be paid to a charter school that provides transportation 
  4.36  services according to section 124D.10, subdivision 16, according 
  5.1   to this subdivision.  Transportation aid shall equal 
  5.2   transportation revenue.  
  5.3      In addition to the revenue under subdivision 1, a charter 
  5.4   school providing transportation services must receive (1) 
  5.5   general education aid for each adjusted marginal cost pupil unit 
  5.6   equal to the sum of an amount equal to the product of the 
  5.7   formula allowance according to section 126C.10, subdivision 2, 
  5.8   times .0485, plus the transportation sparsity allowance for the 
  5.9   school district in which the charter school is located and (2) 
  5.10  general education aid for each extended time marginal cost pupil 
  5.11  unit equal to the product of $223 times the school's extended 
  5.12  time marginal cost pupil units.  
  5.13     Sec. 7.  Minnesota Statutes 2002, section 124D.68, 
  5.14  subdivision 9, is amended to read: 
  5.15     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
  5.16  attending an eligible program full time under subdivision 3, 
  5.17  paragraph (d), the department must pay 90 percent of the 
  5.18  district's average general education revenue less basic skills 
  5.19  revenue to the eligible program and ten percent of the 
  5.20  district's average general education revenue less basic skills 
  5.21  revenue to the contracting district within 30 days after the 
  5.22  eligible program verifies enrollment using the form provided by 
  5.23  the department.  For a pupil attending an eligible program part 
  5.24  time, revenue, excluding compensatory revenue, shall be reduced 
  5.25  proportionately, according to the amount of time the pupil 
  5.26  attends the program, and the payments to the eligible program 
  5.27  and the contracting district shall be reduced accordingly.  A 
  5.28  pupil for whom payment is made according to this section may not 
  5.29  be counted by any district for any purpose other than 
  5.30  computation of general education revenue.  If payment is made 
  5.31  for a pupil under this subdivision, a district shall not 
  5.32  reimburse a program under section 124D.69 for the same 
  5.33  pupil.  The basic skills revenue shall be paid generated by 
  5.34  pupils attending the eligible program according to section 
  5.35  126C.10, subdivision 4, shall be paid to the eligible program. 
  5.36     (b) The department must pay up to 100 percent of the 
  6.1   revenue to the eligible program if there is an agreement to that 
  6.2   effect between the school district and the eligible program. 
  6.3      (c) Notwithstanding paragraphs (a) and (b), for an eligible 
  6.4   program that provides chemical treatment services to students, 
  6.5   the department must pay 100 percent of the revenue to the 
  6.6   eligible program. 
  6.7      Sec. 8.  Minnesota Statutes 2002, section 124D.69, 
  6.8   subdivision 1, is amended to read: 
  6.9      Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
  6.10  program, eligible under section 124D.68, subdivision 3, 
  6.11  paragraph (d), or subdivision 4, operated by a private 
  6.12  organization that has contracted with a school district to 
  6.13  provide educational services for eligible pupils under section 
  6.14  124D.68, subdivision 2, the district contracting with the 
  6.15  private organization must reimburse the provider an amount equal 
  6.16  to the sum of (1) at least 95 percent of the district's average 
  6.17  general education less basic skills revenue per pupil unit times 
  6.18  the number of pupil units for pupils attending the program. and 
  6.19  (2) the amount of basic skills revenue shall be paid generated 
  6.20  by pupils attending the program according to section 126C.10, 
  6.21  subdivision 4.  Compensatory revenue must be allocated according 
  6.22  to section 126C.15, subdivision 2.  For a pupil attending the 
  6.23  program part time, the revenue paid to the program, excluding 
  6.24  compensatory revenue, must be reduced proportionately, according 
  6.25  to the amount of time the pupil attends the program, and revenue 
  6.26  paid to the district shall be reduced accordingly.  Pupils for 
  6.27  whom a district provides reimbursement may not be counted by the 
  6.28  district for any purpose other than computation of general 
  6.29  education revenue.  If payment is made to a district or program 
  6.30  for a pupil under this section, the department must not make a 
  6.31  payment for the same pupil under section 124D.68, subdivision 9. 
  6.32     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
  6.33  125A.79, subdivision 1, is amended to read: 
  6.34     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  6.35  section, the definitions in this subdivision apply. 
  6.36     (a) "Unreimbursed special education cost" means the sum of 
  7.1   the following: 
  7.2      (1) expenditures for teachers' salaries, contracted 
  7.3   services, supplies, equipment, and transportation services 
  7.4   eligible for revenue under section 125A.76; plus 
  7.5      (2) expenditures for tuition bills received under sections 
  7.6   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
  7.7   under section 125A.76, subdivision 2; minus 
  7.8      (3) revenue for teachers' salaries, contracted services, 
  7.9   supplies, and equipment under section 125A.76; minus 
  7.10     (4) tuition receipts under sections 125A.03 to 125A.24 and 
  7.11  125A.65 for services eligible for revenue under section 125A.76, 
  7.12  subdivision 2. 
  7.13     (b) "General revenue" means for fiscal year 1996, the sum 
  7.14  of the general education revenue according to section 126C.10, 
  7.15  subdivision 1, as adjusted according to section 127A.47, 
  7.16  subdivision 7, plus the total referendum revenue according to 
  7.17  section 126C.17, subdivision 4.  For fiscal years 1997 and 
  7.18  later, "General revenue" means the sum of the general education 
  7.19  revenue according to section 126C.10, subdivision 1, as adjusted 
  7.20  according to section 127A.47, subdivisions 7 and 8, plus the 
  7.21  total referendum revenue minus transportation sparsity revenue 
  7.22  minus total operating capital revenue.  
  7.23     (c) "Average daily membership" has the meaning given it in 
  7.24  section 126C.05. 
  7.25     (d) "Program growth factor" means 1.02 for fiscal year 
  7.26  2003, and 1.0 for fiscal year 2004 and later. 
  7.27     Sec. 10.  Minnesota Statutes 2002, section 126C.05, is 
  7.28  amended by adding a subdivision to read: 
  7.29     Subd. 5a.  [EXTENDED TIME PUPIL UNITS.] (a) "Extended time 
  7.30  average daily membership for a district or charter school" means 
  7.31  the sum of the average daily membership according to subdivision 
  7.32  8, paragraph (a), minus the sum of the average daily membership 
  7.33  according to subdivision 8, paragraph (b), for pupils enrolled 
  7.34  in a learning year program under section 124D.128; an area 
  7.35  learning center under sections 123A.05 and 123A.06; an 
  7.36  alternative program under section 124D.68, subdivision 3, 
  8.1   paragraph (d); or section 124D.69. 
  8.2      (b) "Extended time pupil units for a district or charter 
  8.3   school" means the sum of the average daily membership in 
  8.4   paragraph (a) weighted according to subdivision 1 for: 
  8.5      (1) pupils served according to subdivision 7; plus 
  8.6      (2) pupils according to subdivision 1 for whom the district 
  8.7   or charter school pays tuition under sections 123A.18; 123A.22; 
  8.8   123A.30; 123A.32; 123A.44; 123A.488; 123B.88, subdivision 4; 
  8.9   124D.04; 124D.05; 125A.03 to 125A.24; 125A.51; or 125A.65; minus 
  8.10     (3) pupils according to subdivision 1 for whom the district 
  8.11  or charter school receives tuition under sections 123A.18; 
  8.12  123A.22; 123A.30; 123A.32; 123A.44; 123A.488; 123B.88, 
  8.13  subdivision 4; 124D.04; 124D.05; 125A.03 to 125A.24; 125A.51; or 
  8.14  125A.65. 
  8.15     (c) The "extended time marginal cost pupil units" means the 
  8.16  greater of: 
  8.17     (1) the sum of .77 times the pupil units defined in 
  8.18  paragraph (b) for the current school year and .23 times the 
  8.19  pupil units defined in paragraph (b) for the previous school 
  8.20  year; or 
  8.21     (2) the number of extended time pupil units defined in 
  8.22  paragraph (b) for the current school year. 
  8.23     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
  8.24  126C.10, subdivision 31, is amended to read: 
  8.25     Subd. 31.  [TRANSITION REVENUE.] (a) A district's 
  8.26  transition allowance for fiscal years 2004 through 2008 equals 
  8.27  the greater of zero or the product of the ratio of the number of 
  8.28  adjusted marginal cost pupil units the district would have 
  8.29  counted for fiscal year 2004 under Minnesota Statutes 2002 to 
  8.30  the district's adjusted marginal cost pupil units for fiscal 
  8.31  year 2004, times the difference between:  (1) the lesser of the 
  8.32  district's general education revenue per adjusted marginal cost 
  8.33  pupil unit for fiscal year 2003 or the amount of general 
  8.34  education revenue the district would have received per adjusted 
  8.35  marginal cost pupil unit for fiscal year 2004 according to 
  8.36  Minnesota Statutes 2002, and (2) the district's general 
  9.1   education revenue for fiscal year 2004 excluding transition 
  9.2   revenue divided by the number of adjusted marginal cost pupil 
  9.3   units the district would have counted for fiscal year 2004 under 
  9.4   Minnesota Statutes 2002.  A district's transition allowance for 
  9.5   fiscal year 2009 and later is zero. 
  9.6      (b) A district's transition revenue for fiscal year 2004 
  9.7   and later equals the product of the district's transition 
  9.8   allowance times the district's adjusted marginal cost pupil 
  9.9   units. 
  9.10     (c) A district's transition revenue for fiscal year 2005 
  9.11  equals the sum of:  (1) the product of the district's transition 
  9.12  allowance times the district's adjusted marginal cost pupil 
  9.13  units, plus (2) the amount of referendum revenue under section 
  9.14  126C.17 and general education revenue, excluding transition 
  9.15  revenue, for fiscal year 2004 attributable to pupils four or 
  9.16  five years of age on September 1, 2003, enrolled in a 
  9.17  prekindergarten program implemented by the district before July 
  9.18  1, 2003, and reported as kindergarten pupils under section 
  9.19  126C.05, subdivision 1, for fiscal year 2004. 
  9.20     (d) A district's transition revenue for fiscal year 2006 
  9.21  and later equals the sum of:  (1) the product of the district's 
  9.22  transition allowance times the district's adjusted marginal cost 
  9.23  pupil units, plus (2) the amount of referendum revenue under 
  9.24  section 126C.17 and general education revenue, excluding 
  9.25  transition revenue, for fiscal year 2004 attributable to pupils 
  9.26  four or five years of age on September 1, 2003, enrolled in a 
  9.27  prekindergarten program implemented by the district before July 
  9.28  1, 2003, and reported as kindergarten pupils under section 
  9.29  126C.05, subdivision 1, for fiscal year 2004, plus (3) the 
  9.30  amount of compensatory education revenue under subdivision 3 for 
  9.31  fiscal year 2005 attributable to pupils four years of age on 
  9.32  September 1, 2003, enrolled in a prekindergarten program 
  9.33  implemented by the district before July 1, 2003, and reported as 
  9.34  kindergarten pupils under section 126C.05, subdivision 1, for 
  9.35  fiscal year 2004. 
  9.36     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 10.1   fiscal year 2005. 
 10.2      Sec. 12.  Minnesota Statutes 2003 Supplement, section 
 10.3   126C.15, subdivision 1, is amended to read: 
 10.4      Subdivision 1.  [USE OF THE REVENUE.] Except for revenue 
 10.5   allocated for prekindergarten programs under subdivision 2, 
 10.6   paragraph (c), the basic skills revenue under section 126C.10, 
 10.7   subdivision 4, must be reserved and used to meet the educational 
 10.8   needs of pupils who enroll under-prepared to learn and whose 
 10.9   progress toward meeting state or local content or performance 
 10.10  standards is below the level that is appropriate for learners of 
 10.11  their age.  Any of the following may be provided to meet these 
 10.12  learners' needs: 
 10.13     (1) direct instructional services under the assurance of 
 10.14  mastery program according to section 124D.66; 
 10.15     (2) remedial instruction in reading, language arts, 
 10.16  mathematics, other content areas, or study skills to improve the 
 10.17  achievement level of these learners; 
 10.18     (3) additional teachers and teacher aides to provide more 
 10.19  individualized instruction to these learners through individual 
 10.20  tutoring, lower instructor-to-learner ratios, or team teaching; 
 10.21     (4) a longer school day or week during the regular school 
 10.22  year or through a summer program that may be offered directly by 
 10.23  the site or under a performance-based contract with a 
 10.24  community-based organization; 
 10.25     (5) comprehensive and ongoing staff development consistent 
 10.26  with district and site plans according to section 122A.60, for 
 10.27  teachers, teacher aides, principals, and other personnel to 
 10.28  improve their ability to identify the needs of these learners 
 10.29  and provide appropriate remediation, intervention, 
 10.30  accommodations, or modifications; 
 10.31     (6) instructional materials and technology appropriate for 
 10.32  meeting the individual needs of these learners; 
 10.33     (7) programs to reduce truancy, encourage completion of 
 10.34  high school, enhance self-concept, provide health services, 
 10.35  provide nutrition services, provide a safe and secure learning 
 10.36  environment, provide coordination for pupils receiving services 
 11.1   from other governmental agencies, provide psychological services 
 11.2   to determine the level of social, emotional, cognitive, and 
 11.3   intellectual development, and provide counseling services, 
 11.4   guidance services, and social work services; 
 11.5      (8) bilingual programs, bicultural programs, and programs 
 11.6   for learners of limited English proficiency; 
 11.7      (9) all day kindergarten; 
 11.8      (10) extended school day and extended school year programs; 
 11.9   and 
 11.10     (11) substantial parent involvement in developing and 
 11.11  implementing remedial education or intervention plans for a 
 11.12  learner, including learning contracts between the school, the 
 11.13  learner, and the parent that establish achievement goals and 
 11.14  responsibilities of the learner and the learner's parent or 
 11.15  guardian. 
 11.16     Sec. 13.  Minnesota Statutes 2002, section 126C.15, 
 11.17  subdivision 2, is amended to read: 
 11.18     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 11.19  allocate its compensatory revenue to each school building in the 
 11.20  district where the children who have generated the revenue are 
 11.21  served unless the school district has received permission from 
 11.22  the commissioner under the test score pilot program to allocate 
 11.23  compensatory revenue according to test score results. 
 11.24     (b) Notwithstanding paragraph (a), a district may allocate 
 11.25  up to five percent of the amount of compensatory revenue that 
 11.26  the district received during the previous fiscal year receives 
 11.27  to school sites according to a plan adopted by the school board. 
 11.28     (c) Notwithstanding paragraph (a), a district may allocate 
 11.29  up to ten percent of the amount of compensatory revenue the 
 11.30  district receives to support prekindergarten programs under 
 11.31  subdivision 2a. 
 11.32     (d) For the purposes of this section and section 126C.05, 
 11.33  subdivision 3, "building" means education site as defined in 
 11.34  section 123B.04, subdivision 1. 
 11.35     (d) (e) If the pupil is served at a site other than one 
 11.36  owned and operated by the district, the revenue shall be paid to 
 12.1   the district and used for services for pupils who generate the 
 12.2   revenue.  
 12.3      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
 12.4   for revenue for fiscal year 2005. 
 12.5      Sec. 14.  Minnesota Statutes 2002, section 126C.15, is 
 12.6   amended by adding a subdivision to read: 
 12.7      Subd. 2a.  [PREKINDERGARTEN PROGRAMS.] Revenue allocated 
 12.8   under subdivision 2, paragraph (c), must be reserved and used 
 12.9   for programs and activities that prepare children ages 3-1/2 to 
 12.10  kindergarten entrance for kindergarten.  Programs may serve 
 12.11  resident and nonresident children.  Districts may contract with 
 12.12  private preschools and other providers of prekindergarten 
 12.13  programs. 
 12.14     Sec. 15.  Minnesota Statutes 2002, section 126C.15, 
 12.15  subdivision 3, is amended to read: 
 12.16     Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 12.17  team, as defined in section 123B.04, subdivision 2, paragraph 
 12.18  (a), or the instruction and curriculum advisory committee under 
 12.19  section 120B.11, if the school has no school site decision team, 
 12.20  shall recommend how the compensatory education revenue will be 
 12.21  used to carry out the purpose of this section.  A school 
 12.22  district that has received permission under the test score pilot 
 12.23  program to allocate compensatory revenue according to test 
 12.24  results shall share its plan for the distribution of 
 12.25  compensatory revenue with the school site decision team. 
 12.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
 12.27  for revenue for fiscal year 2005. 
 12.28     Sec. 16.  Minnesota Statutes 2002, section 126C.21, 
 12.29  subdivision 4, is amended to read: 
 12.30     Subd. 4.  [TACONITE DEDUCTIONS.] (1) Notwithstanding any 
 12.31  provisions of any other law to the contrary, the adjusted net 
 12.32  tax capacity used in calculating general education aid may 
 12.33  include only that property that is currently taxable in the 
 12.34  district.  
 12.35     (2) For districts that received payments have revenue under 
 12.36  sections 298.018; 298.225; 298.24 to 298.28, excluding 298.26, 
 13.1   and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 
 13.2   298.391 to 298.396; and 298.405,; and 477A.15; or any law 
 13.3   imposing a tax upon severed mineral values; or recognized 
 13.4   revenue under section 477A.15; the general education aid must be 
 13.5   reduced in the final adjustment payment by (i) the difference 
 13.6   between the dollar amount of the payments received revenue 
 13.7   recognized pursuant to those sections, or revenue recognized 
 13.8   under section 477A.15 in for the fiscal year to which the final 
 13.9   adjustment is attributable and, less (ii) the amount that was 
 13.10  calculated, pursuant to section 126C.48, subdivision 8, as a 
 13.11  reduction of the levy attributable to the fiscal year to which 
 13.12  the final adjustment is attributable.  If the final adjustment 
 13.13  of a district's general education aid for a fiscal year is a 
 13.14  negative amount because of this clause, the next fiscal year's 
 13.15  general education aid to that district must be reduced by this 
 13.16  negative amount in the following manner:  there must be withheld 
 13.17  from each scheduled general education aid payment due the 
 13.18  district in such fiscal year, 15 percent of the total negative 
 13.19  amount, until the total negative amount has been withheld.  The 
 13.20  amount reduced from general education aid pursuant to this 
 13.21  clause must be recognized as reduce revenue in the fiscal year 
 13.22  to which the final adjustment payment is attributable. 
 13.23     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
 13.24  July 1, 2003, for school district revenue for fiscal year 2004. 
 13.25     Sec. 17.  Minnesota Statutes 2002, section 126C.48, 
 13.26  subdivision 8, is amended to read: 
 13.27     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
 13.28  Reductions in levies pursuant to sections 126C.48, subdivision 
 13.29  1, and 273.138, must be made prior to the reductions in clause 
 13.30  (2). 
 13.31     (2) Notwithstanding any other law to the contrary, 
 13.32  districts which received payments that have revenue pursuant to 
 13.33  sections 298.018; 298.225; and 298.24 to 298.28, except an 
 13.34  amount distributed under section sections 298.26; 298.28, 
 13.35  subdivision 4, paragraph (c), clause (ii); 298.28, subdivision 
 13.36  4, paragraph (d); 298.34 to 298.39; 298.391 to 298.396; 298.405; 
 14.1   477A.15; and any law imposing a tax upon severed mineral values; 
 14.2   or recognized revenue under section 477A.15 must not include a 
 14.3   portion of these aids in their permissible levies pursuant to 
 14.4   those sections, but instead must reduce the permissible levies 
 14.5   authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
 14.6   124A, 124D, 125A, and 127A by the greater of the following: 
 14.7      (a) an amount equal to 50 percent of the total dollar 
 14.8   amount of the payments received pursuant to those sections or 
 14.9   revenue recognized under section 477A.15 in the previous fiscal 
 14.10  year; or 
 14.11     (b) an amount equal to the total dollar amount of the 
 14.12  payments received pursuant to those sections or revenue 
 14.13  recognized under section 477A.15 in the previous fiscal year 
 14.14  less the product of the same dollar amount of payments or 
 14.15  revenue times five percent. 
 14.16     For levy year 2002 only, 77 percent of the amounts 
 14.17  distributed under section 298.225 and 298.28, and 100 percent of 
 14.18  the amounts distributed under sections 298.018; 298.34 to 
 14.19  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
 14.20  upon severed mineral values, or recognized revenue under section 
 14.21  477A.15, shall be used for purposes of the calculations under 
 14.22  this paragraph.  For levy year 2003 only, the levy reductions 
 14.23  under this subdivision must be calculated as if section 298.28, 
 14.24  subdivision 4, paragraph (f), did not apply for the 2003 
 14.25  distribution 95 percent of the previous year's revenue specified 
 14.26  under this clause. 
 14.27     (3) The amount of any voter approved referendum, facilities 
 14.28  down payment, and debt levies shall not be reduced by more than 
 14.29  50 percent under this subdivision.  In administering this 
 14.30  paragraph, the commissioner shall first reduce the nonvoter 
 14.31  approved levies of a district; then, if any payments, severed 
 14.32  mineral value tax revenue or recognized revenue under paragraph 
 14.33  (2) remains, the commissioner shall reduce any voter approved 
 14.34  referendum levies authorized under section 126C.17; then, if any 
 14.35  payments, severed mineral value tax revenue or recognized 
 14.36  revenue under paragraph (2) remains, the commissioner shall 
 15.1   reduce any voter approved facilities down payment levies 
 15.2   authorized under section 123B.63 and then, if any payments, 
 15.3   severed mineral value tax revenue or recognized revenue under 
 15.4   paragraph (2) remains, the commissioner shall reduce any voter 
 15.5   approved debt levies.  
 15.6      (4) Before computing the reduction pursuant to this 
 15.7   subdivision of the health and safety levy authorized by sections 
 15.8   123B.57 and 126C.40, subdivision 5, the commissioner shall 
 15.9   ascertain from each affected school district the amount it 
 15.10  proposes to levy under each section or subdivision.  The 
 15.11  reduction shall be computed on the basis of the amount so 
 15.12  ascertained. 
 15.13     (5) To the extent the levy reduction calculated under 
 15.14  paragraph (2) exceeds the limitation in paragraph (3), an amount 
 15.15  equal to the excess must be distributed from the school 
 15.16  district's distribution under sections 298.225, 298.28, and 
 15.17  477A.15 in the following year to the cities and townships within 
 15.18  the school district in the proportion that their taxable net tax 
 15.19  capacity within the school district bears to the taxable net tax 
 15.20  capacity of the school district for property taxes payable in 
 15.21  the year prior to distribution.  No city or township shall 
 15.22  receive a distribution greater than its levy for taxes payable 
 15.23  in the year prior to distribution.  The commissioner of revenue 
 15.24  shall certify the distributions of cities and towns under this 
 15.25  paragraph to the county auditor by September 30 of the year 
 15.26  preceding distribution.  The county auditor shall reduce the 
 15.27  proposed and final levies of cities and towns receiving 
 15.28  distributions by the amount of their distribution.  
 15.29  Distributions to the cities and towns shall be made at the times 
 15.30  provided under section 298.27. 
 15.31     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 15.32  payable in 2005. 
 15.33     Sec. 18.  Minnesota Statutes 2003 Supplement, section 
 15.34  127A.47, subdivision 7, is amended to read: 
 15.35     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 15.36  education aid for districts must be adjusted for each pupil 
 16.1   attending a nonresident district under sections 123A.05 to 
 16.2   123A.08, 124D.03, 124D.06, 124D.08, and 124D.68.  The 
 16.3   adjustments must be made according to this subdivision. 
 16.4      (a) General education aid paid to a resident district must 
 16.5   be reduced by an amount equal to the referendum equalization aid 
 16.6   attributable to the pupil in the resident district. 
 16.7      (b) General education aid paid to a district serving a 
 16.8   pupil in programs listed in this subdivision must be increased 
 16.9   by an amount equal to the referendum equalization aid 
 16.10  attributable to the pupil in the nonresident district.  
 16.11     (c) If the amount of the reduction to be made from the 
 16.12  general education aid of the resident district is greater than 
 16.13  the amount of general education aid otherwise due the district, 
 16.14  the excess reduction must be made from other state aids due the 
 16.15  district. 
 16.16     (d) The district of residence must pay tuition to a 
 16.17  district or an area learning center, operated according to 
 16.18  paragraph (e), providing special instruction and services to a 
 16.19  pupil with a disability, as defined in section 125A.02, or a 
 16.20  pupil, as defined in section 125A.51, who is enrolled in a 
 16.21  program listed in this subdivision.  The tuition must be equal 
 16.22  to (1) the actual cost of providing special instruction and 
 16.23  services to the pupil, including a proportionate amount for debt 
 16.24  service and for capital expenditure facilities and equipment, 
 16.25  and debt service but not including any amount for 
 16.26  transportation, minus (2) the amount of general education 
 16.27  revenue and special education aid but not including any amount 
 16.28  for transportation, attributable to that pupil, that is received 
 16.29  by the district providing special instruction and services. 
 16.30     (e) An area learning center operated by a service 
 16.31  cooperative, intermediate district, education district, or a 
 16.32  joint powers cooperative may elect through the action of the 
 16.33  constituent boards to charge the resident district tuition for 
 16.34  pupils rather than to have the general education revenue paid to 
 16.35  a fiscal agent school district.  Except as provided in paragraph 
 16.36  (d), the district of residence must pay tuition equal to at 
 17.1   least 90 percent of the district average general education 
 17.2   revenue per pupil unit minus an amount equal to the product of 
 17.3   the formula allowance according to section 126C.10, subdivision 
 17.4   2, times .0485, calculated without basic skills revenue and 
 17.5   transportation sparsity revenue, times the number of pupil units 
 17.6   for pupils attending the area learning center, plus the amount 
 17.7   of compensatory basic skills revenue generated by pupils 
 17.8   attending the area learning center. 
 17.9      Sec. 19.  Laws 2003, First Special Session chapter 9, 
 17.10  article 1, section 53, subdivision 2, is amended to read: 
 17.11     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
 17.12  aid under Minnesota Statutes, section 126C.13, subdivision 4: 
 17.13       $4,764,384,000 $4,726,466,000     .....     2004
 17.14       $5,090,303,000 $5,020,210,000     .....     2005
 17.15     The 2004 appropriation includes $857,432,000 $860,552,000 
 17.16  for 2003 and $3,906,952,000 $3,865,914,000 for 2004. 
 17.17     The 2005 appropriation includes 
 17.18  $1,009,856,000 $1,009,822,000 for 2004 
 17.19  and $4,080,447,000 $4,010,388,000 for 2005.  
 17.20     Sec. 20.  [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 
 17.21  PILOT PROGRAM.] 
 17.22     Subdivision 1.  [PILOT PROGRAM CREATED.] A three-year pilot 
 17.23  program is created to allow school districts to allocate 
 17.24  compensatory revenue received under Minnesota Statutes, section 
 17.25  126C.10, subdivision 3, among its school buildings according to 
 17.26  each building's test scores. 
 17.27     Subd. 2.  [APPLICATION PROCESS.] A school district that 
 17.28  seeks to allocate its compensatory revenue to school sites based 
 17.29  on student performance may submit an application to the 
 17.30  commissioner of education by August 1, 2004.  The application 
 17.31  must include a written resolution approved by the school board 
 17.32  that:  (1) identifies the test results that will be used to 
 17.33  assess student performance; (2) describes the method for 
 17.34  distribution of compensatory revenue to the school sites; and 
 17.35  (3) summarizes the evaluation procedure the district will use to 
 17.36  determine if the redistribution of compensatory revenue improves 
 18.1   overall student performance.  The application must be submitted 
 18.2   in the form and manner specified by the commissioner. 
 18.3      Subd. 3.  [COMMISSIONER SELECTION.] The commissioner shall 
 18.4   select school districts to participate in the pilot program.  
 18.5   The commissioner must notify the selected school districts by 
 18.6   August 31, 2004. 
 18.7      Subd. 4.  [REPORT.] The commissioner of education must 
 18.8   submit a report by February 15, 2007, to the education 
 18.9   committees of the legislature evaluating the effectiveness of 
 18.10  the pilot program. 
 18.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 18.12  following final enactment. 
 18.13     Sec. 21.  [KINDERGARTEN REPORTING.] 
 18.14     Notwithstanding Minnesota Statutes, sections 120A.05, 
 18.15  subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 
 18.16  1, pupils four or five years of age on September 1 of the 
 18.17  calendar year in which the school year commences and enrolled in 
 18.18  a prekindergarten program implemented by the district before 
 18.19  July 1, 2003, may be reported as kindergarten pupils under 
 18.20  Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 
 18.21  year 2004 and earlier. 
 18.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 18.23  following final enactment and applies to fiscal year 2004 and 
 18.24  earlier. 
 18.25                             ARTICLE 2 
 18.26                        EDUCATION EXCELLENCE 
 18.27     Section 1.  [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 
 18.28     (a) The commissioner of education in consultation with the 
 18.29  Office of Educational Accountability must develop a value-added 
 18.30  assessment program to assist public schools to assess and report 
 18.31  growth in student academic achievement under section 120B.30, 
 18.32  subdivision 1a.  The program must utilize assessments that 
 18.33  measure growth in student academic achievement by making 
 18.34  longitudinal comparisons in individual student educational 
 18.35  progress over time.  School districts, schools, and charter 
 18.36  schools may apply to participate in the program on a form and in 
 19.1   a manner prescribed by the commissioner.  Program participants 
 19.2   must represent the urban, suburban, and rural geographic areas 
 19.3   of the state with no more than a total of 125,000 students 
 19.4   participating in the program.  
 19.5      (b) The commissioner may contract with an organization that 
 19.6   utilizes a "value-added" assessment model that reliably 
 19.7   estimates school and school district effects on student 
 19.8   achievement over time for classroom settings where a single 
 19.9   teacher teaches multiple subjects to the same group of students, 
 19.10  for team teaching arrangements, and for other teaching 
 19.11  circumstances.  The model the commissioner selects must 
 19.12  accommodate diverse data from various test sources and must use 
 19.13  each student's test data across grades and subjects even when 
 19.14  the data are incomplete. 
 19.15     Sec. 2.  [125B.30] [TECHNOLOGY INNOVATION GRANTS.] 
 19.16     Subdivision 1.  [SCHOOL DISTRICT TECHNOLOGY INNOVATION 
 19.17  GRANT.] (a) A school district, charter school, or a nonpublic 
 19.18  school may apply for a grant under this subdivision to provide a 
 19.19  wireless computing device for each student in a middle school, 
 19.20  junior high school, or high school.  Applicants receiving an 
 19.21  award under this section shall provide the opportunity for each 
 19.22  student to receive a wireless computing device that will remain 
 19.23  with the student for as long as the student is enrolled in the 
 19.24  school or district, or for the duration of the grant agreement 
 19.25  with the state or other contracted agreement. 
 19.26     (b) In order to receive a grant, the applicant must 
 19.27  demonstrate a local match, which may come from state, local, or 
 19.28  other eligible federal funds that have been allocated to the 
 19.29  district or the school.  Once awarded a grant, the applicant 
 19.30  shall receive a decreasing grant amount each year over a 
 19.31  three-year period as determined by the department.  The 
 19.32  applicant may also require a deposit to be paid by the student 
 19.33  or parent. 
 19.34     (c) An applicant may elect to purchase or lease wireless 
 19.35  computing devices from a vendor other than the statewide 
 19.36  partnership described in subdivision 3, paragraph (d), if the 
 20.1   department determines that the vendor selected by the applicant 
 20.2   meets the requirements of this section. 
 20.3      Subd. 2.  [APPLICATION.] To qualify for a grant under this 
 20.4   section, the applicant shall submit an application to the 
 20.5   department and to the Minnesota Education Telecommunications 
 20.6   Council.  The application shall include at least the following: 
 20.7      (1) how the applicant will provide the opportunity for each 
 20.8   pupil in the school to receive a wireless computing device; 
 20.9      (2) a plan demonstrating how the applicant will use the 
 20.10  wireless computing device to increase overall student 
 20.11  achievement, help improve adequate yearly progress as determined 
 20.12  by the department, and decrease the student achievement gap in 
 20.13  the school or district; 
 20.14     (3) a plan for teacher professional development on 
 20.15  technology integration, content and curriculum, and 
 20.16  communication with parents; 
 20.17     (4) a three-year to five-year plan for increasing the local 
 20.18  share of expenses for the wireless computer program; 
 20.19     (5) how the applicant will amend its local technology plan 
 20.20  as required under state and federal law to reflect the wireless 
 20.21  computer program; 
 20.22     (6) a plan to provide adequate insurance coverage for the 
 20.23  computer equipment; 
 20.24     (7) a policy for appropriate use of computer equipment for 
 20.25  students; 
 20.26     (8) a plan to provide ongoing technical support for the 
 20.27  computer equipment; and 
 20.28     (9) a plan for providing low-cost or free Internet access 
 20.29  to students. 
 20.30     Subd. 3.  [DEPARTMENT OF EDUCATION.] (a) The department, in 
 20.31  consultation with the Minnesota Education Telecommunications 
 20.32  Council, shall develop, implement, and operate the technology 
 20.33  innovation grant program and make program grants.  
 20.34     (b) The department, in consultation with the Minnesota 
 20.35  Education Telecommunications Council, shall award grants under 
 20.36  this section using at least $1,500,000 from the eligible funds 
 21.1   under the federal Department of Education, title II, part D, 
 21.2   educational technology grant funds.  The department shall 
 21.3   consider regional diversity in awarding grants. 
 21.4      (c) The department, in consultation with the Minnesota 
 21.5   Education Telecommunications Council, shall select a program 
 21.6   partner through a request for proposals process for a total 
 21.7   learning technology package that includes, but is not limited 
 21.8   to, a wireless computing device, software, professional 
 21.9   development, service and support, and for management for the 
 21.10  overall implementation of the technology innovation grant 
 21.11  program.  
 21.12     (d) The commissioner shall report annually by March 1 
 21.13  during the program, with a final report due by March 1, 2009, to 
 21.14  the house of representatives and senate committees having 
 21.15  jurisdiction over education on the progress of the program, 
 21.16  including at least:  improvement in student achievement, the 
 21.17  effect of integrating innovative technology resources on closing 
 21.18  the achievement gap, and the cost-benefits of using innovative 
 21.19  technology learning resources as compared to traditional 
 21.20  learning resources.  
 21.21     Sec. 3.  [127A.095] [IMPLEMENTATION OF NO CHILD LEFT BEHIND 
 21.22  ACT.] 
 21.23     Subdivision 1.  [CONTINUED IMPLEMENTATION.] The Department 
 21.24  of Education shall continue to implement the federal No Child 
 21.25  Left Behind Act, Public Law 107-110, without interruption until 
 21.26  June 30, 2005. 
 21.27     Subd. 2.  [NO CHILD LEFT BEHIND NULLIFICATION.] (a) The 
 21.28  consolidated state plan submitted by the state to the federal 
 21.29  Department of Education on implementing the No Child Left Behind 
 21.30  Act, Public Law 107-110, and any other Minnesota state contract 
 21.31  or agreement under the provisions of the No Child Left Behind 
 21.32  Act, shall be nullified and revoked by the commissioner of 
 21.33  education on July 1, 2005. 
 21.34     (b) The commissioner shall report to the education funding 
 21.35  divisions and the education policy committees of the house of 
 21.36  representatives and the senate by April 1, 2005, that the 
 22.1   following conditions have been met: 
 22.2      (1) the Department of Education has received approval from 
 22.3   the federal Department of Education to allow the state to use a 
 22.4   value-added measurement of student achievement for determining 
 22.5   adequate yearly progress; 
 22.6      (2) the Department of Education has developed a plan and 
 22.7   model legislation to ensure that if an adequate yearly progress 
 22.8   determination was made in error, that the error will not 
 22.9   adversely affect the school's or school district's sanction 
 22.10  status in subsequent years.  The Department of Education must 
 22.11  have a policy in place to correct errors to accountability 
 22.12  reports; 
 22.13     (3) the Department of Education shall report the additional 
 22.14  costs for state fiscal years 2005 to 2008 that the No Child Left 
 22.15  Behind Act imposes on the state, the state's school districts, 
 22.16  and charter schools, which are in excess of costs associated 
 22.17  with the Improving America's Schools Act of 1994, Public Law 
 22.18  103-382; 
 22.19     (4) the Department of Education shall identify new federal 
 22.20  funds provided by the No Child Left Behind Act, which are 
 22.21  sufficient to meet the additional mandates imposed by the act; 
 22.22     (5) the department has received approval from the federal 
 22.23  Department of Education to exclude from sanctions schools that 
 22.24  have not made adequate yearly progress solely due to a subgroup 
 22.25  of students with disabilities not testing at a proficient level; 
 22.26     (6) the Department of Education has received approval from 
 22.27  the federal Department of Education to exclude from sanctions a 
 22.28  school that is classified as not having made adequate yearly 
 22.29  progress solely due to different subgroups testing below 
 22.30  proficient levels for at least two consecutive years; 
 22.31     (7) the department has developed a plan and model 
 22.32  legislation to monitor the quality of results achieved by 
 22.33  supplemental service providers that have been approved by the 
 22.34  department; 
 22.35     (8) the department has implemented a uniform financial 
 22.36  reporting system for school districts to report costs related to 
 23.1   implementing No Child Left Behind Act requirements, including 
 23.2   the costs of complying with sanctions; and 
 23.3      (9) the department has developed a plan and model 
 23.4   legislation for imposing sanctions on school sites that have not 
 23.5   made adequate yearly progress for four or more consecutive 
 23.6   years, including the criteria used for imposing different 
 23.7   sanctions for different school sites. 
 23.8      (c) The state's continued implementation of the No Child 
 23.9   Left Behind Act shall be discontinued effective July 1, 2005, 
 23.10  unless the legislature passes a joint resolution during the 2005 
 23.11  regular legislative session establishing the legislature's 
 23.12  satisfaction that the requirements under paragraph (b) have been 
 23.13  met. 
 23.14     Subd. 3.  [DEPARTMENT OF FINANCE CERTIFICATION.] If the 
 23.15  legislature does not pass a joint resolution authorizing 
 23.16  continued implementation of the No Child Left Behind Act under 
 23.17  subdivision 2, paragraph (c), the commissioner of finance shall 
 23.18  certify and report to the legislature beginning January 1, 2006, 
 23.19  and each year thereafter the amount of federal revenue, if any, 
 23.20  that has been withheld by the federal government as a result of 
 23.21  the state's discontinued implementation of the No Child Left 
 23.22  Behind Act.  The report shall also specify the intended purpose 
 23.23  of the federal revenue and the amount of revenue withheld from 
 23.24  the state, each school district, and each charter school in each 
 23.25  fiscal year. 
 23.26     Subd. 4.  [ANNUAL CONTINGENT APPROPRIATION.] For fiscal 
 23.27  year 2006 and each fiscal year thereafter, an amount equal to 
 23.28  the federal funds withheld in the same fiscal year as a result 
 23.29  of the state's discontinued implementation of the No Child Left 
 23.30  Behind Act, as certified by the commissioner of finance under 
 23.31  subdivision 3, is appropriated from the general fund to the 
 23.32  commissioner of education.  The commissioner of education shall 
 23.33  allocate the appropriation under this section according to the 
 23.34  report from the commissioner of finance in subdivision 3. 
 23.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 23.36  following final enactment. 
 24.1      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 24.2   127A.47, subdivision 8, is amended to read: 
 24.3      Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
 24.4   for districts must be adjusted for each pupil attending a 
 24.5   charter school under section 124D.10.  The adjustments must be 
 24.6   made according to this subdivision. 
 24.7      (b) General education aid paid to a district in which a 
 24.8   charter school not providing transportation according to section 
 24.9   124D.10, subdivision 16, is located must be increased by an 
 24.10  amount equal to the sum of: 
 24.11     (1) the product of:  (1) (i) the sum of an amount equal to 
 24.12  the product of the formula allowance according to section 
 24.13  126C.10, subdivision 2, times .0485, plus the transportation 
 24.14  sparsity allowance for the district; times (2) (ii) the adjusted 
 24.15  marginal cost pupil units attributable to the pupil, plus 
 24.16     (2) the product of $223 times the extended time marginal 
 24.17  cost pupil units attributable to the pupil.  
 24.18     Sec. 5.  Laws 2003, First Special Session chapter 9, 
 24.19  article 2, section 55, subdivision 15, is amended to read: 
 24.20     Subd. 15.  [BEST PRACTICES SEMINARS.] For best practices 
 24.21  seminars and other professional development capacity building 
 24.22  activities that assure proficiency in teaching and 
 24.23  implementation of graduation rule standards: 
 24.24       $1,000,000     .....     2004
 24.25       $1,000,000     .....     2005
 24.26     $250,000 per year is for a grant to A Chance to Grow/New 
 24.27  Visions for the Minnesota learning resource center's 
 24.28  comprehensive training program for education professionals 
 24.29  charged with helping children acquire basic reading and math 
 24.30  skills.  In fiscal year 2005 only, $250,000 is for the Minnesota 
 24.31  Humanities Commission. 
 24.32     Sec. 6.  Laws 2003, First Special Session chapter 9, 
 24.33  article 2, section 55, subdivision 16, is amended to read: 
 24.34     Subd. 16.  [ALTERNATIVE TEACHER COMPENSATION.] For 
 24.35  alternative teacher compensation established under Minnesota 
 24.36  Statutes, sections 122A.413 to 122A.415: 
 25.1        $3,700,000     .....     2004
 25.2        $3,700,000     .....     2005
 25.3      If the appropriations under this subdivision are 
 25.4   insufficient to fund all program participants, a participant may 
 25.5   receive less than the maximum per pupil amount available under 
 25.6   Minnesota Statutes, section 122A.415, subdivision 1.  A 
 25.7   qualifying district or site receiving alternative teacher 
 25.8   compensation funding under this subdivision may use the funding 
 25.9   it receives to leverage additional funds from a national program 
 25.10  for enhancing teacher professionalism. 
 25.11     Any balance in the first year does not cancel but is 
 25.12  available in the second year.  The base appropriation for this 
 25.13  program is $2,600,000 for fiscal years 2006 and 2007. 
 25.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 25.15  following final enactment. 
 25.16     Sec. 7.  [GRANTS FOR SITE-BASED ACHIEVEMENT CONTRACTS.] 
 25.17     Subdivision 1.  [ELIGIBLE SCHOOLS.] (a) The commissioner of 
 25.18  education shall award grants to public school sites to increase 
 25.19  student achievement and eliminate the achievement gap at the 
 25.20  school site. 
 25.21     (b) The commissioner shall select sites that meet the 
 25.22  following criteria: 
 25.23     (1) have at least 75 percent of their enrollment eligible 
 25.24  for free or reduced-price lunch; 
 25.25     (2) have an enrollment where at least 75 percent of the 
 25.26  students are students of color; and 
 25.27     (3) have failed to meet adequate yearly progress for at 
 25.28  least two consecutive years. 
 25.29     (c) In order to be eligible for a grant under this section, 
 25.30  a public school site shall have an approved site decision-making 
 25.31  agreement under Minnesota Statutes, section 123B.04, including 
 25.32  an achievement contract under Minnesota Statutes, section 
 25.33  123B.04, subdivision 4.  The site decision-making team shall 
 25.34  include the principal of the school site. 
 25.35     (d) The site team shall have a plan approved by the school 
 25.36  board and shall also have an agreement with the exclusive 
 26.1   bargaining unit of the district to participate in this grant 
 26.2   program. 
 26.3      Subd. 2.  [APPLICATION.] (a) The applicant shall submit a 
 26.4   plan that will result in at least 80 percent of the students at 
 26.5   the site testing at a proficient level for their grade by the 
 26.6   end of the grant period of six years, with at least 60 percent 
 26.7   of the students testing at a proficient level for their grade at 
 26.8   the midpoint of the grant period. 
 26.9      (b) The site team shall include in its application a 
 26.10  detailed plan for using multiple objective and measurable 
 26.11  methods for tracking student achievement during the duration of 
 26.12  the grant and shall also include curriculum and academic 
 26.13  requirements that are rigorous and challenging for all 
 26.14  students.  The site shall have the ability to return timely test 
 26.15  data to teachers and have a plan that demonstrates that the 
 26.16  teachers at the site can use the data to help improve curriculum 
 26.17  as well as monitor student achievement. 
 26.18     (c) The applicant shall have in its site-based plan an 
 26.19  agreement between the district and the exclusive bargaining unit 
 26.20  of the district that would give the site-based team increased 
 26.21  stability in the placement of teachers at the site.  The 
 26.22  applicant shall include other innovative site-based personnel 
 26.23  decision-making items in its agreement that may include, but are 
 26.24  not limited to:  hiring bonuses, additional ongoing 
 26.25  collaborative preparation time, on-site staff development, 
 26.26  hiring additional staff, and performance-based incentives. 
 26.27     (d) The site team shall also include in its application a 
 26.28  plan for a greater involvement of parents and the community in 
 26.29  the school, a plan for ensuring that each student at the site 
 26.30  can develop a meaningful relationship with at least one teacher 
 26.31  at the school site, and a clear approach to school safety, 
 26.32  including promoting respect for students and teachers. 
 26.33     Subd. 3.  [GRANT AWARDS.] (a) The commissioner shall award 
 26.34  grants to a school site in three parts:  one-third of the total 
 26.35  grant amount is awarded at the beginning of the grant agreement; 
 26.36  one-third is awarded at the midpoint of the grant agreement if 
 27.1   the site has met the achievement goals established in 
 27.2   subdivision 2, paragraph (a); and one-third is awarded upon the 
 27.3   completion of the grant agreement if the site has met the 
 27.4   achievement goals established in subdivision 2, paragraph (a). 
 27.5      (b) The total grant award for a school site shall be at 
 27.6   least $150,000 and shall not exceed $500,000.  The commissioner 
 27.7   shall determine the grant amount based on the number of students 
 27.8   enrolled at the site. 
 27.9      (c) The commissioner shall determine all other aspects of 
 27.10  the application and grant award process consistent with this 
 27.11  section. 
 27.12     Subd. 4.  [REPORT.] The commissioner shall report annually 
 27.13  by March 1 during the program, with a final report due by 
 27.14  January 15, 2011, to the house of representatives and senate 
 27.15  committees having jurisdiction over education on the progress of 
 27.16  the program, including at least:  improvement in student 
 27.17  achievement, the effect of innovative personnel decision making 
 27.18  on closing the achievement gap, and the characteristics of 
 27.19  highly effective teachers.  
 27.20     Subd. 5.  [APPROPRIATION BASE.] The base appropriation for 
 27.21  this program is $500,000 for fiscal years 2006 and 2007.  
 27.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.23  following final enactment and applies to the 2005-2006 through 
 27.24  2009-2010 school years.  
 27.25     Sec. 8.  [APPROPRIATION.] 
 27.26     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 27.27  indicated in this section are appropriated from the general fund 
 27.28  to the Department of Education for the fiscal years designated. 
 27.29     Subd. 2.  [VALUE-ADDED ASSESSMENT.] For the value-added 
 27.30  assessment program: 
 27.31       $250,000     .....     2005
 27.32     This is a onetime appropriation. 
 27.33                             ARTICLE 3 
 27.34         FACILITIES; NUTRITION; ACCOUNTING; OTHER PROGRAMS 
 27.35     Section 1.  Minnesota Statutes 2003 Supplement, section 
 27.36  16A.152, subdivision 2, is amended to read: 
 28.1      Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 
 28.2   basis of a forecast of general fund revenues and expenditures, 
 28.3   the commissioner of finance determines that there will be a 
 28.4   positive unrestricted budgetary general fund balance at the 
 28.5   close of the biennium, the commissioner of finance must allocate 
 28.6   money to the following accounts and purposes in priority order: 
 28.7      (1) the cash flow account established in subdivision 1 
 28.8   until that account reaches $350,000,000; and 
 28.9      (2) the budget reserve account established in subdivision 
 28.10  1a until that account reaches $653,000,000; 
 28.11     (3) the amount necessary to increase the aid payment 
 28.12  schedule for school district aids and credits payments in 
 28.13  section 127A.45 to not more than 90 percent, excluding special 
 28.14  education excess cost aid under section 125A.79; and 
 28.15     (4) the amount necessary to eliminate all or a portion of 
 28.16  the property tax revenue recognition shift in section 123B.75, 
 28.17  subdivision 5. 
 28.18     (b) The amounts necessary to meet the requirements of this 
 28.19  section are appropriated from the general fund within two weeks 
 28.20  after the forecast is released or, in the case of transfers 
 28.21  under paragraph (a), clauses (3) and (4), as necessary to meet 
 28.22  the appropriations schedules otherwise established in statute. 
 28.23     (c) To the extent that a positive unrestricted budgetary 
 28.24  general fund balance is projected, appropriations under this 
 28.25  section must be made before any transfer is made under section 
 28.26  16A.1522. 
 28.27     (d) The commissioner of finance shall certify the total 
 28.28  dollar amount of the reductions under paragraph (a), clauses (3) 
 28.29  and (4), to the commissioner of education.  The commissioner of 
 28.30  education shall increase the aid payment percentage and reduce 
 28.31  the property tax shift percentage by these amounts and apply 
 28.32  those reductions to the current fiscal year and thereafter.  
 28.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 28.34  following final enactment. 
 28.35     Sec. 2.  Minnesota Statutes 2002, section 123B.12, is 
 28.36  amended to read: 
 29.1      123B.12 [INSUFFICIENT FUNDS TO PAY ORDERS.] 
 29.2      (a) In the event that a district or a cooperative unit 
 29.3   defined in section 123A.24, subdivision 2, has insufficient 
 29.4   funds to pay its usual lawful current obligations, subject to 
 29.5   section 471.69, the board may enter into agreements with banks 
 29.6   or any person to take its orders.  Any order drawn, after having 
 29.7   been presented to the treasurer for payment and not paid for 
 29.8   want of funds shall be endorsed by the treasurer by putting on 
 29.9   the back thereof the words "not paid for want of funds," giving 
 29.10  the date of endorsement and signed by the treasurer.  A record 
 29.11  of such presentment, nonpayment and endorsement shall be made by 
 29.12  the treasurer.  The treasurer shall serve a written notice upon 
 29.13  the payee or the payee's assignee, personally, or by mail, when 
 29.14  the treasurer is prepared to pay such orders.  The notice may be 
 29.15  directed to the payee or the payee's assignee at the address 
 29.16  given in writing by such payee or assignee to such treasurer, at 
 29.17  any time prior to the service of such notice.  No order shall 
 29.18  draw any interest if such address is not given when the same is 
 29.19  unknown to the treasurer, and no order shall draw any interest 
 29.20  after the service of such notice.  
 29.21     (b) A district may enter, subject to section 471.69, into a 
 29.22  line of credit agreement with a financial institution.  The 
 29.23  amount of credit available must not exceed 95 percent of average 
 29.24  expenditure per month of operating expenditures in the previous 
 29.25  fiscal year.  Any amount advanced must be repaid no later than 
 29.26  45 180 days after the day of advancement. 
 29.27     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
 29.28  123B.54, is amended to read: 
 29.29     123B.54 [DEBT SERVICE APPROPRIATION.] 
 29.30     (a) $25,987,000 in fiscal year 2002, $29,941,000 in fiscal 
 29.31  year 2003, $40,075,000 $35,598,000 in fiscal year 2004, and 
 29.32  $39,774,000 $31,220,000 in fiscal years year 2005, $27,830,000 
 29.33  in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 
 29.34  later are appropriated from the general fund to the commissioner 
 29.35  of education for payment of debt service equalization aid under 
 29.36  section 123B.53.  
 30.1      (b) The appropriations in paragraph (a) must be reduced by 
 30.2   the amount of any money specifically appropriated for the same 
 30.3   purpose in any year from any state fund. 
 30.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 30.5   following final enactment. 
 30.6      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 30.7   124D.1158, subdivision 3, is amended to read: 
 30.8      Subd. 3.  [PROGRAM REIMBURSEMENT.] Each school year, the 
 30.9   state must reimburse each participating school 30 cents for each 
 30.10  reduced price breakfast and 55 81 cents for each fully paid 
 30.11  breakfast. 
 30.12     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
 30.13  124D.118, subdivision 4, is amended to read: 
 30.14     Subd. 4.  [REIMBURSEMENT.] In accordance with program 
 30.15  guidelines, the commissioner shall reimburse each participating 
 30.16  public or nonpublic school nine 14 cents for each half-pint of 
 30.17  milk that is served to kindergarten students and is not part of 
 30.18  a school lunch or breakfast reimbursed under section 124D.111 or 
 30.19  124D.1158. 
 30.20     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 30.21  126C.63, subdivision 8, is amended to read: 
 30.22     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 
 30.23  effort debt service levy" means the lesser of: 
 30.24     (1) a levy in whichever of the following amounts is 
 30.25  applicable: 
 30.26     (i) in any district receiving a debt service loan for a 
 30.27  debt service levy payable in 2002 and thereafter, or granted a 
 30.28  capital loan after January 1, 2002, a levy in total dollar 
 30.29  amount computed at a rate of 40 percent of adjusted net tax 
 30.30  capacity for taxes payable in 2002 and thereafter; 
 30.31     (ii) in any district receiving a debt service loan for a 
 30.32  debt service levy payable in 2001 or earlier, or granted a 
 30.33  capital loan before January 2, 2001 2002, a levy in a total 
 30.34  dollar amount computed at a rate of 32 28 percent of adjusted 
 30.35  net tax capacity for taxes payable in 2002 and thereafter; or 
 30.36     (2) a levy in any district for which a capital loan was 
 31.1   approved prior to August 1, 1981, a levy in a total dollar 
 31.2   amount equal to the sum of the amount of the required debt 
 31.3   service levy and an amount which when levied annually will in 
 31.4   the opinion of the commissioner be sufficient to retire the 
 31.5   remaining interest and principal on any outstanding loans from 
 31.6   the state within 30 years of the original date when the capital 
 31.7   loan was granted.  
 31.8      (b) The board in any district affected by the provisions of 
 31.9   paragraph (a), clause (2), may elect instead to determine the 
 31.10  amount of its levy according to the provisions of paragraph (a), 
 31.11  clause (1).  If a district's capital loan is not paid within 30 
 31.12  years because it elects to determine the amount of its levy 
 31.13  according to the provisions of paragraph (a), clause (2), the 
 31.14  liability of the district for the amount of the difference 
 31.15  between the amount it levied under paragraph (a), clause (2), 
 31.16  and the amount it would have levied under paragraph (a), clause 
 31.17  (1), and for interest on the amount of that difference, must not 
 31.18  be satisfied and discharged pursuant to Minnesota Statutes 1988, 
 31.19  or an earlier edition of Minnesota Statutes if applicable, 
 31.20  section 124.43, subdivision 4. 
 31.21     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 31.22  payable in 2005. 
 31.23     Sec. 7.  Minnesota Statutes 2002, section 128D.11, 
 31.24  subdivision 9, is amended to read: 
 31.25     Subd. 9.  [NET DEBT DEFINED.] The net debt of the school 
 31.26  district for the purposes of this limitation is the amount of 
 31.27  bonds less the amount of all money and the face value of all 
 31.28  securities then held as a sinking fund for the payment of such 
 31.29  bonds, and shall not include school aid and tax anticipation 
 31.30  certificates of indebtedness not in default or bonds issued to 
 31.31  pay pension fund liabilities under section 475.52, subdivision 6.
 31.32     Sec. 8.  Laws 2003, First Special Session chapter 9, 
 31.33  article 4, section 29, is amended to read: 
 31.34     Sec. 29.  [GARAGE LEASE LEVY; SARTELL.] 
 31.35     For taxes payable in 2004, 2005, and 2006, independent 
 31.36  school district No. 740 748, Sartell, may levy up to $107,000 
 32.1   each year for the purpose of leasing a school bus storage 
 32.2   facility.  For taxes payable in 2007, Independent School 
 32.3   District No. 748, Sartell, may levy up to $115,000 for the 
 32.4   purpose of leasing a school bus storage facility.  The 
 32.5   department of education shall include this levy these levies in 
 32.6   the calculation of eligible building lease levy under Minnesota 
 32.7   Statutes, section 126C.40, subdivision 1.  This levy These 
 32.8   levies shall not allow the district to exceed the $100 per 
 32.9   resident marginal cost pupil unit cap in that section.  The 
 32.10  district is eligible to make this levy these levies only if it 
 32.11  sells its current school bus storage site to the city of Sartell 
 32.12  and the district may not use this levy these levies as part of a 
 32.13  lease purchase agreement to replace its current school bus 
 32.14  storage facility. 
 32.15     Sec. 9.  Laws 2003, First Special Session chapter 9, 
 32.16  article 5, section 35, subdivision 3, is amended to read: 
 32.17     Subd. 3.  [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 
 32.18  MILK.] For traditional school breakfast aid and kindergarten 
 32.19  milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 
 32.20       $3,088,000 $4,382,000    .....     2004 
 32.21       $3,217,000 $6,282,000    .....     2005 
 32.22     Sec. 10.  Laws 2003, First Special Session chapter 9, 
 32.23  article 6, section 4, is amended to read: 
 32.24     Sec. 4.  [APPROPRIATIONS.] 
 32.25     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 32.26  indicated in this section are appropriated from the general fund 
 32.27  to the department of education for the fiscal years designated.  
 32.28     Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
 32.29  grants under Minnesota Statutes, section 134.355: 
 32.30       $8,072,000 $8,312,000     .....     2004 
 32.31       $8,570,000     .....     2005 
 32.32     The 2004 appropriation includes $1,456,000 for 2003 and 
 32.33  $6,616,000 $6,856,000 for 2004. 
 32.34     The 2005 appropriation includes $1,654,000 $1,714,000 for 
 32.35  2004 and $6,916,000 $6,856,000 for 2005. 
 32.36     Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
 33.1   regional library telecommunications aid under Minnesota 
 33.2   Statutes, section 134.355: 
 33.3        $1,200,000 $960,000     .....     2004
 33.4        $1,200,000     .....     2005
 33.5      The 2004 appropriation includes $960,000 for 2004. 
 33.6      The 2005 appropriation includes $240,000 for 2004 and 
 33.7   $960,000 for 2005. 
 33.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.9   following final enactment. 
 33.10     Sec. 11.  [FORECASTING THE BASE BUDGET FOR EDUCATION.] 
 33.11     Notwithstanding Minnesota Statutes 2003 Supplement, section 
 33.12  16A.11, subdivision 3, paragraph (b), the appropriation base for 
 33.13  fiscal years 2006 and 2007 for each forecast program with an 
 33.14  appropriation in this act or in Laws 2003, First Special Session 
 33.15  chapter 9, is the forecast appropriation level needed to fully 
 33.16  fund that program. 
 33.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.18  following final enactment. 
 33.19     Sec. 12.  [FUND TRANSFERS.] 
 33.20     Subdivision 1.  [FUND TRANSFER, FOLEY.] Notwithstanding 
 33.21  Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 
 33.22  2004, Independent School District No. 51, Foley, may permanently 
 33.23  transfer up to $190,000 from its reserved operating capital 
 33.24  account in its general fund to the undesignated general fund 
 33.25  balance. 
 33.26     Subd. 2.  [FUND TRANSFER, KIMBALL.] Notwithstanding 
 33.27  Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 
 33.28  2004, Independent School District No. 739, Kimball, may 
 33.29  permanently transfer up to $150,000 from its reserved account 
 33.30  for bus purchase, or any successor account, to its undesignated 
 33.31  general fund balance. 
 33.32     Subd. 3.  [FUND TRANSFER, BUTTERFIELD.] Notwithstanding 
 33.33  Minnesota Statutes, section 123B.79 or 123B.80, for calendar 
 33.34  years 2004 through 2006, on June 30 of each year, Independent 
 33.35  School District No. 836, Butterfield, may permanently transfer 
 33.36  up to $50,000 from its reserved operating capital account in its 
 34.1   general fund to its undesignated general fund balance and 
 34.2   $60,000 from its reserved bus purchase account in its general 
 34.3   fund to its undesignated general fund balance.  The total amount 
 34.4   transferred for the three-year period must not total more than 
 34.5   $50,000 from the reserved operating capital account and $60,000 
 34.6   from the reserved bus purchase account. 
 34.7      Subd. 4.  [FUND TRANSFER, MCLEOD WEST.] Notwithstanding 
 34.8   Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 
 34.9   2004, Independent School District No. 2887, McLeod West, may 
 34.10  permanently transfer up to $200,000 from its reserved operating 
 34.11  capital account in its general fund to the undesignated general 
 34.12  fund balance. 
 34.13     Subd. 5.  [FUND TRANSFER, M.A.C.C.R.A.Y.] (a) 
 34.14  Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
 34.15  on June 30, 2004, upon approval of the commissioner of 
 34.16  education, Independent School District No. 2180, M.A.C.C.R.A.Y., 
 34.17  may permanently transfer up to $230,000 from its reserved 
 34.18  account for handicapped access to its undesignated general fund 
 34.19  balance. 
 34.20     (b) Prior to making the fund transfer, Independent School 
 34.21  District No. 2180, M.A.C.C.R.A.Y., must demonstrate to the 
 34.22  commissioner's satisfaction that the district's school buildings 
 34.23  are accessible to students and employees with disabilities. 
 34.24     Subd. 6.  [FUND TRANSFER, NORTHEAST METRO.] Notwithstanding 
 34.25  Minnesota Statutes, sections 123B.79; 123B.80; and 475.61, 
 34.26  subdivision 4, on June 30, 2004, Intermediate School District 
 34.27  No. 916, Northeast Metro, may permanently transfer up to 
 34.28  $240,000 from its debt redemption fund to its capital account in 
 34.29  its general fund without making a levy reduction. 
 34.30     Subd. 7.  [FUND TRANSFER, PILLAGER.] Notwithstanding 
 34.31  Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 
 34.32  subdivision 4, Independent School District No. 116, Pillager, on 
 34.33  June 30, 2004, may permanently transfer up to $100,000 from its 
 34.34  debt redemption fund to its general fund without making a levy 
 34.35  reduction. 
 34.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.1   following final enactment. 
 35.2      Sec. 13.  [MAXIMUM EFFORT CAPITAL LOAN FORGIVEN; EAST 
 35.3   CENTRAL.] 
 35.4      Subdivision 1.  [SALE REQUIREMENTS.] Independent School 
 35.5   District No. 2580, East Central, may sell its middle school 
 35.6   building in accordance with Minnesota Statutes, section 
 35.7   16A.695.  The net proceeds from the sale of the property must be 
 35.8   paid to the commissioner of finance and deposited in the state 
 35.9   bond fund. 
 35.10     Subd. 2.  [OUTSTANDING LOAN BALANCE FORGIVEN.] Any 
 35.11  remaining outstanding balance on the maximum effort capital loan 
 35.12  issued in January 1982 to former Independent School District No. 
 35.13  566, Askov, after the application of the sale proceeds according 
 35.14  to subdivision 1, is forgiven. 
 35.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.16  following final enactment. 
 35.17     Sec. 14.  [SCHOOL BUS LOAN; CARPENTER SCHOOL BUSES.] 
 35.18     Subdivision 1.  [BUS LOAN REVENUE.] In fiscal year 2005, 
 35.19  only a school district may receive bus loan revenue equal to up 
 35.20  to $30,000 times the number of Carpenter school buses in its 
 35.21  fleet between March 30, 2003, and March 30, 2004, that have been 
 35.22  determined to have potentially defective welds and are subject 
 35.23  to the limitations imposed by the Department of Public Safety.  
 35.24  A school district that is eligible to receive revenue under this 
 35.25  subdivision must approve a board resolution to receive revenue 
 35.26  according to this section. 
 35.27     Subd. 2.  [LEVY.] For taxes payable in 2005 through 2008, a 
 35.28  school district that received revenue under subdivision 1 must 
 35.29  levy an amount equal to its bus loan revenue times .25. 
 35.30     Subd. 3.  [GENERAL EDUCATION REVENUE WITHHOLDING.] For 
 35.31  fiscal years 2006 through 2009, the Department of Education 
 35.32  shall reduce the general education aid under Minnesota Statutes, 
 35.33  section 126C.13, subdivision 4, for each district that received 
 35.34  revenue under subdivision 1 in an amount equal to the district's 
 35.35  bus loan revenue times .25. 
 35.36     Sec. 15.  [SUPPLEMENTARY LEVY AUTHORITY.] 
 36.1      (a) For taxes payable in 2005, 2006, and 2007 only, each 
 36.2   school district, upon approval of a school board resolution, may 
 36.3   levy up to $12 times the adjusted marginal cost pupil units 
 36.4   annually for one or more of the following uses: 
 36.5      (1) outstanding disability access projects; 
 36.6      (2) onetime health- and safety-related projects that are 
 36.7   not eligible for health and safety revenue under Minnesota 
 36.8   Statutes, section 123B.57; 
 36.9      (3) outstanding construction deficit costs of school 
 36.10  facilities shared with the community; 
 36.11     (4) utility and other costs of operating a district-owned 
 36.12  community center where the district colocates services with 
 36.13  other local units of government, in proportion to the amount of 
 36.14  time the district uses the facility; 
 36.15     (5) the district's share of the costs of building 
 36.16  noninstructional facilities that will be operated in cooperation 
 36.17  with other local units of government; 
 36.18     (6) the cost of leasing school-related storage facilities; 
 36.19     (7) the costs associated with leases of administrative and 
 36.20  classroom space shared with other school districts or higher 
 36.21  education institutions; 
 36.22     (8) outstanding building lease levy amounts under Minnesota 
 36.23  Statutes, section 126C.40, subdivision 1; outstanding 
 36.24  unemployment insurance amounts under Minnesota Statutes, section 
 36.25  126C.43, subdivision 2; outstanding amounts necessary for 
 36.26  judgments against the district under Minnesota Statutes, section 
 36.27  126C.43, subdivision 3; and additional costs under the safe 
 36.28  schools levy under Minnesota Statutes, section 126C.44; 
 36.29     (9) a school district whose total concentration of free and 
 36.30  reduced-price lunch students increased between fiscal years 2003 
 36.31  and 2004, may utilize the revenue under this section, according 
 36.32  to Minnesota Statutes, section 126C.13, subdivision 5; 
 36.33     (10) retired employee health benefits; or 
 36.34     (11) other district deferred maintenance projects or 
 36.35  capital projects eligible under Minnesota Statutes, section 
 36.36  126C.10, subdivision 14. 
 37.1      (b) In a form and manner determined by the Department of 
 37.2   Education, each district shall submit to the department the 
 37.3   amounts levied under this section for each category in paragraph 
 37.4   (a). 
 37.5      (c) The Department of Education shall not include the 
 37.6   district levy amounts under this section in the calculation of 
 37.7   eligible building lease levies under Minnesota Statutes, section 
 37.8   126C.40, subdivision 1. 
 37.9      <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 37.10  payable in 2005, 2006, and 2007. 
 37.11     Sec. 16.  [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 
 37.12     (a) The commissioner of education, when making offsetting 
 37.13  levy adjustments between levy categories to ensure that each 
 37.14  levy category is positive for Independent School District No. 
 37.15  599, Fertile-Beltrami, shall make such adjustments first between 
 37.16  levy categories that are imposed on identical tax bases before 
 37.17  making such adjustments between levy categories that are imposed 
 37.18  on different tax bases.  The commissioner may make offsetting 
 37.19  levy adjustments between the general fund and the debt service 
 37.20  fund, if necessary. 
 37.21     (b) The commissioner of education must make the offsetting 
 37.22  levy adjustments according to the process in paragraph (a) until 
 37.23  Independent School District No. 599, Fertile-Beltrami's current 
 37.24  referendum authority, under Minnesota Statutes, section 126C.17, 
 37.25  expires. 
 37.26     Sec. 17.  [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.] 
 37.27     Subdivision 1.  [COSTS TO BE SUBMITTED.] (a) A district or 
 37.28  charter school shall submit its actual 
 37.29  telecommunications/Internet access costs for the previous fiscal 
 37.30  year, adjusted for any e-rate revenue received, to the 
 37.31  department by August 15 of each year as prescribed by the 
 37.32  commissioner.  Costs eligible for reimbursement under this 
 37.33  program are limited to the following: 
 37.34     (1) ongoing or recurring telecommunications/Internet access 
 37.35  costs associated with Internet access, data lines, and video 
 37.36  links providing: 
 38.1      (i) the equivalent of one data line, video link, or 
 38.2   integrated data/video link that relies on a transport medium 
 38.3   that operates at a speed of 1.544 megabytes per second (T1) for 
 38.4   each elementary school, middle school, or high school under 
 38.5   Minnesota Statutes, section 120A.05, subdivisions 9, 11, and 13; 
 38.6   including the recurring telecommunications line lease costs and 
 38.7   ongoing Internet access service fees; or 
 38.8      (ii) the equivalent of one data line or video circuit, or 
 38.9   integrated data/video link that relies on a transport medium 
 38.10  that operates at a minimum speed of 1.544 megabytes per second 
 38.11  (T1) for each district; including recurring telecommunications 
 38.12  line lease costs and ongoing Internet access service fees; 
 38.13     (2) recurring costs of contractual or vendor-provided 
 38.14  maintenance on the school district's wide area network to the 
 38.15  point of presence at the school building up to the router, 
 38.16  codec, or other service delivery equipment located at the point 
 38.17  of presence termination at the school or school district; 
 38.18     (3) recurring costs of cooperative, shared arrangements for 
 38.19  regional delivery of telecommunications/Internet access between 
 38.20  school districts, postsecondary institutions, and public 
 38.21  libraries including network gateways, peering points, regional 
 38.22  network infrastructure, Internet2 access, and network support, 
 38.23  maintenance, and coordination; and 
 38.24     (4) service provider installation fees for installation of 
 38.25  new telecommunications lines or increased bandwidth. 
 38.26     (b) Costs not eligible for reimbursement under this program 
 38.27  include: 
 38.28     (1) recurring costs of school district staff providing 
 38.29  network infrastructure support; 
 38.30     (2) recurring costs associated with voice and standard 
 38.31  telephone service; 
 38.32     (3) costs associated with purchase of network hardware, 
 38.33  telephones, computers, or other peripheral equipment needed to 
 38.34  deliver telecommunications access to the school or school 
 38.35  district; 
 38.36     (4) costs associated with laying fiber for 
 39.1   telecommunications access; 
 39.2      (5) costs associated with wiring school or school district 
 39.3   buildings; 
 39.4      (6) costs associated with purchase and/or installation of 
 39.5   Internet filtering; and 
 39.6      (7) costs associated with digital content, including 
 39.7   on-line learning or distance learning programming, and 
 39.8   information databases. 
 39.9      Subd. 2.  [E-RATES.] To be eligible for aid under this 
 39.10  section, a district or charter school is required to file an 
 39.11  e-rate application either separately or through its 
 39.12  telecommunications access cluster and to have a current 
 39.13  technology plan on file with the Department of Education.  
 39.14  Discounts received on telecommunications expenditures shall be 
 39.15  reflected in the costs submitted to the department for aid under 
 39.16  this section. 
 39.17     Subd. 3.  [REIMBURSEMENT CRITERIA.] The commissioner shall 
 39.18  develop criteria for approving costs submitted by school 
 39.19  districts and charter schools under subdivision 1. 
 39.20     Subd. 4.  [DISTRICT AID.] For fiscal year 2005 and later, a 
 39.21  district's or charter school's Internet access equity aid equals 
 39.22  90 percent of the district's or charter school's approved cost 
 39.23  for the previous fiscal year according to subdivision 1 
 39.24  exceeding $15 times the district's adjusted marginal cost pupil 
 39.25  units for the previous fiscal year. 
 39.26     Subd. 5.  [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 
 39.27  NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 
 39.28  formal request by or on behalf of a nonpublic school, not 
 39.29  including home schools, located in that district or area, 
 39.30  ongoing or recurring telecommunications access services to the 
 39.31  nonpublic school either through existing district providers or 
 39.32  through separate providers. 
 39.33     (b) The amount of district aid for telecommunications 
 39.34  access services for each nonpublic school under this subdivision 
 39.35  equals the lesser of: 
 39.36     (1) 90 percent of the nonpublic school's approved cost for 
 40.1   the previous fiscal year according to subdivision 1 exceeding 
 40.2   $10 times the number of weighted pupils enrolled at the 
 40.3   nonpublic school as of October 1 of the previous school year; or 
 40.4      (2) the product of the district's aid per adjusted marginal 
 40.5   cost pupil unit according to subdivision 4 times the number of 
 40.6   weighted pupils enrolled at the nonpublic school as of October 1 
 40.7   of the previous school year. 
 40.8      (c) For purposes of this subdivision, nonpublic school 
 40.9   pupils shall be weighted by grade level using the weighing 
 40.10  factors defined in Minnesota Statutes, section 126C.05, 
 40.11  subdivision 1. 
 40.12     (d) Each year, a district providing services under 
 40.13  paragraph (a) may claim up to five percent of the aid determined 
 40.14  in paragraph (b) for costs of administering this subdivision.  
 40.15  No district may expend an amount for these telecommunications 
 40.16  access services which exceeds the amount allocated under this 
 40.17  subdivision.  The nonpublic school is responsible for the 
 40.18  Internet access costs not covered by this section. 
 40.19     (e) At the request of a nonpublic school, districts may 
 40.20  allocate the amount determined in paragraph (b) directly to the 
 40.21  nonpublic school to pay for or offset the nonpublic school's 
 40.22  costs for telecommunications access services, however, the 
 40.23  amount allocated directly to the nonpublic school may not exceed 
 40.24  the actual amount of the school's ongoing or recurring 
 40.25  telecommunications access costs. 
 40.26     Subd. 6.  [SEVERABILITY.] If any portion of this section is 
 40.27  found by a court to be unconstitutional, the remaining portions 
 40.28  of the section shall remain in effect. 
 40.29     Sec. 18.  [APPROPRIATIONS.] 
 40.30     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sum 
 40.31  indicated in this section is appropriated from the general fund 
 40.32  to the Department of Education for the fiscal year designated. 
 40.33     Subd. 2.  [INTERNET ACCESS EQUITY AID.] For 
 40.34  telecommunications/Internet access cost equity aid: 
 40.35       $3,100,000     .....     2005 
 40.36     If the appropriation for fiscal year 2005 is insufficient, 
 41.1   the aid for that year shall be prorated among participating 
 41.2   schools and districts so as not to exceed the total authorized 
 41.3   appropriation for that year.  This is a onetime appropriation. 
 41.4      Subd. 3.  [SCHOOL BUS LOAN REVENUE.] For school bus loan 
 41.5   revenue under section 14: 
 41.6        $3,630,000     .....     2005 
 41.7                              ARTICLE 4 
 41.8                               AGENCIES 
 41.9      Section 1.  [GOVERNOR'S 2006-2007 PROPOSED BUDGET.] 
 41.10     The governor shall include in the 2006-2007 budget 
 41.11  recommendation to the legislature a proposal for permanently 
 41.12  funding a voluntary full-day, everyday kindergarten program 
 41.13  available to all school districts and charter schools.  The 
 41.14  proposal should identify the funding sources for the program. 
 41.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 41.16  following final enactment. 
 41.17     Sec. 2.  Laws 2003, First Special Session chapter 9, 
 41.18  article 10, section 10, subdivision 2, is amended to read: 
 41.19     Subd. 2.  [DEPARTMENT.] (a) For the department of education:
 41.20       $23,653,000    .....     2004 
 41.21       $23,653,000 $21,621,000   .....     2005 
 41.22     Any balance in the first year does not cancel but is 
 41.23  available in the second year. 
 41.24     (b) $260,000 each year is for the Minnesota children's 
 41.25  museum. 
 41.26     (c) $41,000 each year is for the Minnesota academy of 
 41.27  science. 
 41.28     (d) $237,000 of the balance in the state education 
 41.29  courseware development account in the state government special 
 41.30  revenue fund as of July 1, 2004, is canceled to the general fund.
 41.31     (e) $160,000 of the balance in the state item bank 
 41.32  revolving account in the state government special revenue fund 
 41.33  as of July 1, 2004, is canceled to the general fund. 
 41.34     (f) $621,000 each year is for the board of teaching. 
 41.35     (g) $165,000 each year is for the board of school 
 41.36  administrators.  
 42.1      (h) The commissioner is encouraged to give priority 
 42.2   consideration to the Minnesota humanities commission when 
 42.3   issuing grants for professional development of teachers or 
 42.4   content development from best practices, Federal Title II, Part 
 42.5   A, Federal Title V, Part A, or other appropriate grant resources 
 42.6   that have a stated objective of improvement of teacher 
 42.7   performance. 
 42.8      (i) An additional $96,000 in fiscal year 2004 and $96,000 
 42.9   in fiscal year 2005 are appropriated from the special revenue 
 42.10  fund under Minnesota Statutes, section 517.08, subdivision 1c, 
 42.11  for family visitation centers.  Any balance in the first year 
 42.12  does not cancel but is available for the second year. 
 42.13     (j) The department may not use any amount of this 
 42.14  appropriation for agency dues or fees for membership in 
 42.15  professional organizations.  
 42.16     (k) The appropriation base for the Department of Education 
 42.17  is $21,147,000 for fiscal years 2006 and 2007. 
 42.18     Sec. 3.  Laws 2003, First Special Session chapter 9, 
 42.19  article 10, section 11, is amended to read: 
 42.20     Sec. 11.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
 42.21     The sums indicated in this section are appropriated from 
 42.22  the general fund to the Minnesota state academies for the deaf 
 42.23  and the blind for the fiscal years designated:  
 42.24       $10,466,000    .....     2004 
 42.25       $10,466,000    .....     2005 
 42.26     Any balance in the first year does not cancel but is 
 42.27  available in the second year.  The appropriation base for the 
 42.28  Minnesota State Academies for the Deaf and Blind is $10,435,000 
 42.29  for fiscal years 2006 and 2007.  
 42.30     Sec. 4.  Laws 2003, First Special Session chapter 9, 
 42.31  article 10, section 12, is amended to read: 
 42.32     Sec. 12.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
 42.33  EDUCATION.] 
 42.34     The sums indicated in this section are appropriated from 
 42.35  the general fund to the Perpich center for arts education for 
 42.36  the fiscal years designated: 
 43.1        $6,864,000     .....     2004 
 43.2        $6,423,000     .....     2005 
 43.3      Any balance in the first year does not cancel but is 
 43.4   available in the second year.  The appropriation base for the 
 43.5   Perpich center for arts education is $6,393,000 for fiscal years 
 43.6   2006 and 2007. 
 43.7      Sec. 5.  [ELECTION OF UNEMPLOYMENT INSURANCE COVERAGE; 
 43.8   PERPICH CENTER FOR ARTS EDUCATION.] 
 43.9      The director of the Perpich Center for Arts Education must 
 43.10  file with the commissioner of employment and economic 
 43.11  development under Minnesota Statutes, section 268.042, a written 
 43.12  election to make employment in a position authorized by 
 43.13  Minnesota Statutes, section 43A.08, subdivision 1a, covered 
 43.14  employment for the years 2002 and 2003.  The commissioner is 
 43.15  authorized to and must give approval to the application 
 43.16  retroactive for the years 2002 and 2003.  
 43.17     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
 43.18  from January 1, 2002. 
 43.19                             ARTICLE 5 
 43.20              KINDERGARTEN THROUGH GRADE 12 EDUCATION 
 43.21                        FORECAST ADJUSTMENTS 
 43.22                        A. GENERAL EDUCATION 
 43.23     Section 1.  Laws 2003, First Special Session chapter 9, 
 43.24  article 1, section 53, subdivision 3, is amended to read: 
 43.25     Subd. 3.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
 43.26  referendum tax base replacement aid under Minnesota Statutes, 
 43.27  section 126C.17, subdivision 7a: 
 43.28       $ 7,841,000 $8,096,000     .....     2004 
 43.29       $ 8,543,000 $8,596,000     .....     2005 
 43.30     The 2004 appropriation includes $1,419,000 for 2003 and 
 43.31  $6,422,000 $6,677,000 for 2004.  
 43.32     The 2005 appropriation includes $1,605,000 $1,669,000 for 
 43.33  2004 and $6,938,000 $6,927,000 for 2005. 
 43.34     Sec. 2.  Laws 2003, First Special Session chapter 9, 
 43.35  article 1, section 53, subdivision 5, is amended to read: 
 43.36     Subd. 5.  [ABATEMENT REVENUE.] For abatement aid under 
 44.1   Minnesota Statutes, section 127A.49:  
 44.2        $2,680,000 $2,436,000     .....     2004 
 44.3        $2,937,000 $1,559,000     .....     2005 
 44.4      The 2004 appropriation includes $472,000 for 2003 and 
 44.5   $2,208,000 $1,964,000 for 2004.  
 44.6      The 2005 appropriation includes $551,000 $491,000 for 2004 
 44.7   and $2,386,000 $1,068,000 for 2005.  
 44.8      Sec. 3.  Laws 2003, First Special Session chapter 9, 
 44.9   article 1, section 53, subdivision 6, is amended to read: 
 44.10     Subd. 6.  [CONSOLIDATION TRANSITION.] For districts 
 44.11  consolidating under Minnesota Statutes, section 123A.485: 
 44.12       $207,000 $ 35,000     .....     2004 
 44.13       $607,000 $145,000     .....     2005 
 44.14     The 2004 appropriation includes $35,000 for 2003 and 
 44.15  $172,000 $0 for 2004. 
 44.16     The 2005 appropriation includes $42,000 $0 for 2004 and 
 44.17  $565,000 $145,000 for 2005. 
 44.18     Sec. 4.  Laws 2003, First Special Session chapter 9, 
 44.19  article 1, section 53, subdivision 11, is amended to read: 
 44.20     Subd. 11.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 44.21  education aid under Minnesota Statutes, sections 123B.40 to 
 44.22  123B.43 and 123B.87: 
 44.23       $14,626,000 $14,411,000     .....     2004 
 44.24       $15,594,000 $15,072,000     .....     2005 
 44.25     The 2004 appropriation includes $2,715,000 for 2003 and 
 44.26  $11,911,000 $11,696,000 for 2004. 
 44.27     The 2005 appropriation includes $2,977,000 $2,923,000 for 
 44.28  2004 and $12,617,000 $12,149,000 for 2005. 
 44.29     Sec. 5.  Laws 2003, First Special Session chapter 9, 
 44.30  article 1, section 53, subdivision 12, is amended to read: 
 44.31     Subd. 12.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 44.32  pupil transportation aid under Minnesota Statutes, section 
 44.33  123B.92, subdivision 9: 
 44.34       $21,477,000 $20,471,000     .....     2004 
 44.35       $21,982,000 $21,421,000     .....     2005 
 44.36     The 2004 appropriation includes $3,990,000 for 2003 and 
 45.1   $17,487,000 $16,481,000 for 2004. 
 45.2      The 2005 appropriation includes $4,371,000 $4,120,000 for 
 45.3   2004 and $17,611,000 $17,301,000 for 2005. 
 45.4                       B.  EDUCATION EXCELLENCE
 45.5      Sec. 6.  Laws 2003, First Special Session chapter 9, 
 45.6   article 2, section 55, subdivision 2, is amended to read: 
 45.7      Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 45.8   lease aid under Minnesota Statutes, section 124D.11, subdivision 
 45.9   4: 
 45.10       $17,140,000 $16,753,000     .....     2004 
 45.11       $21,018,000 $21,347,000     .....     2005 
 45.12     The 2004 appropriation includes $2,524,000 for 2003 and 
 45.13  $14,616,000 $14,229,000 for 2004. 
 45.14     The 2005 appropriation includes $3,654,000 $3,557,000 for 
 45.15  2004 and $17,364,000 $17,790,000 for 2005.  
 45.16     Sec. 7.  Laws 2003, First Special Session chapter 9, 
 45.17  article 2, section 55, subdivision 3, is amended to read: 
 45.18     Subd. 3.  [CHARTER SCHOOL STARTUP AID.] For charter school 
 45.19  startup cost aid under Minnesota Statutes, section 124D.11: 
 45.20       $824,000 $844,000     .....     2004 
 45.21       $151,000 $156,000     .....     2005 
 45.22     The 2004 appropriation includes $220,000 for 2003 and 
 45.23  $604,000 $624,000 for 2004.  
 45.24     The 2005 appropriation includes $151,000 $156,000 for 2004 
 45.25  and $0 for 2005. 
 45.26     Sec. 8.  Laws 2003, First Special Session chapter 9, 
 45.27  article 2, section 55, subdivision 4, is amended to read: 
 45.28     Subd. 4.  [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 
 45.29  to charter schools to promote integration and desegregation 
 45.30  under Minnesota Statutes, section 124D.11, subdivision 6, 
 45.31  paragraph (e): 
 45.32       $8,000 $7,000     .....     2004 
 45.33     This appropriation includes $8,000 $7,000 for 2003 and $0 
 45.34  for 2004. 
 45.35     Sec. 9.  Laws 2003, First Special Session chapter 9, 
 45.36  article 2, section 55, subdivision 5, is amended to read: 
 46.1      Subd. 5.  [INTEGRATION AID.] For integration aid under 
 46.2   Minnesota Statutes, section 124D.86, subdivision 5: 
 46.3        $56,869,000 $55,911,000     .....     2004 
 46.4        $56,092,000 $55,893,000     .....     2005 
 46.5      The 2004 appropriation includes $8,428,000 for 2003 and 
 46.6   $48,441,000 $47,483,000 for 2004. 
 46.7      The 2005 appropriation includes $12,110,000 $11,870,000 for 
 46.8   2004 and $43,982,000 $44,023,000 for 2005.  
 46.9      Sec. 10.  Laws 2003, First Special Session chapter 9, 
 46.10  article 2, section 55, subdivision 7, is amended to read: 
 46.11     Subd. 7.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 46.12  startup aid under Minnesota Statutes, section 124D.88: 
 46.13       $ 37,000     .....     2004 
 46.14       $454,000 $ 40,000     .....     2005 
 46.15     The 2004 appropriation includes $37,000 for 2003 and $0 for 
 46.16  2004.  
 46.17     The 2005 appropriation includes $0 for 2004 and $437,000 
 46.18  $40,000 for 2005. 
 46.19     Sec. 11.  Laws 2003, First Special Session chapter 9, 
 46.20  article 2, section 55, subdivision 9, is amended to read: 
 46.21     Subd. 9.  [SUCCESS FOR THE FUTURE.] For American Indian 
 46.22  success for the future grants under Minnesota Statutes, section 
 46.23  124D.81: 
 46.24       $2,073,000 $2,061,000     .....     2004
 46.25       $2,137,000     .....     2005
 46.26     The 2004 appropriation includes $363,000 $351,000 for 2003 
 46.27  and $1,710,000 for 2004. 
 46.28     The 2005 appropriation includes $427,000 for 2004 and 
 46.29  $1,710,000 for 2005. 
 46.30     Sec. 12.  Laws 2003, First Special Session chapter 9, 
 46.31  article 2, section 55, subdivision 12, is amended to read:  
 46.32     Subd. 12.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 46.33  school aid under Minnesota Statutes, section 124D.83: 
 46.34       $2,135,000 $1,617,000     .....     2004
 46.35       $2,336,000 $2,185,000     .....     2005
 46.36     The 2004 appropriation includes $285,000 for 2003 and 
 47.1   $1,850,000 $1,332,000 for 2004. 
 47.2      The 2005 appropriation includes $462,000 $333,000 for 2004 
 47.3   and $1,874,000 $1,852,000 for 2005. 
 47.4                         C.  SPECIAL PROGRAMS
 47.5      Sec. 13.  Laws 2003, First Special Session chapter 9, 
 47.6   article 3, section 20, subdivision 4, is amended to read: 
 47.7      Subd. 4.  [AID FOR CHILDREN WITH DISABILITIES.] For aid 
 47.8   under Minnesota Statutes, section 125A.75, subdivision 3, for 
 47.9   children with disabilities placed in residential facilities 
 47.10  within the district boundaries for whom no district of residence 
 47.11  can be determined: 
 47.12       $2,177,000 $2,311,000     .....     2004 
 47.13       $2,244,000 $2,550,000     .....     2005 
 47.14     If the appropriation for either year is insufficient, the 
 47.15  appropriation for the other year is available.  
 47.16     Sec. 14.  Laws 2003, First Special Session chapter 9, 
 47.17  article 3, section 20, subdivision 5, is amended to read: 
 47.18     Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 47.19  teacher travel for home-based services under Minnesota Statutes, 
 47.20  section 125A.75, subdivision 1: 
 47.21       $220,000 $173,000     .....     2004 
 47.22       $261,000 $178,000     .....     2005 
 47.23     The 2004 appropriation includes $34,000 for 2003 and 
 47.24  $186,000 $139,000 for 2004. 
 47.25     The 2005 appropriation includes $46,000 $34,000 for 2004 
 47.26  and $215,000 $144,000 for 2005. 
 47.27     Sec. 15.  Laws 2003, First Special Session chapter 9, 
 47.28  article 3, section 20, subdivision 6, is amended to read: 
 47.29     Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
 47.30  cost aid under Minnesota Statutes, section 125A.79, subdivision 
 47.31  7: 
 47.32       $92,606,000 $92,605,000     .....     2004 
 47.33       $92,984,000 $92,799,000     .....     2005 
 47.34     The 2004 appropriation includes $41,754,000 for 2003 and 
 47.35  $50,852,000 $50,851,000 for 2004. 
 47.36     The 2005 appropriation includes $41,215,000 $41,216,000 for 
 48.1   2004 and $51,769,000 $51,583,000 for 2005.  
 48.2      Sec. 16.  Laws 2003, First Special Session chapter 9, 
 48.3   article 3, section 20, subdivision 7, is amended to read: 
 48.4      Subd. 7.  [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 
 48.5   paying the costs a district incurs under Minnesota Statutes, 
 48.6   section 125A.75, subdivision 8: 
 48.7        $346,000 $201,000     .....     2004 
 48.8        $ 17,000 $150,000     .....     2005 
 48.9      Sec. 17.  Laws 2003, First Special Session chapter 9, 
 48.10  article 3, section 20, subdivision 8, is amended to read: 
 48.11     Subd. 8.  [TRANSITION FOR DISABLED STUDENTS.] For aid for 
 48.12  transition programs for children with disabilities under 
 48.13  Minnesota Statutes, section 124D.454: 
 48.14       $8,625,000 $8,570,000     .....     2004 
 48.15       $8,867,000 $8,760,000     .....     2005 
 48.16     The 2004 appropriation includes $1,516,000 for 2003 and 
 48.17  $7,109,000 $7,054,000 for 2004.  
 48.18     The 2005 appropriation includes $1,777,000 $1,763,000 for 
 48.19  2004 and $7,090,000 $6,997,000 for 2005.  
 48.20     Sec. 18.  Laws 2003, First Special Session chapter 9, 
 48.21  article 3, section 20, subdivision 9, is amended to read: 
 48.22     Subd. 9.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 48.23  reimbursing serving school districts for unreimbursed eligible 
 48.24  expenditures attributable to children placed in the serving 
 48.25  school district by court action under Minnesota Statutes, 
 48.26  section 125A.79, subdivision 4: 
 48.27       $152,000 $36,000     .....     2004 
 48.28       $160,000 $61,000     .....     2005 
 48.29                   D.  FACILITIES AND TECHNOLOGY
 48.30     Sec. 19.  Laws 2003, First Special Session chapter 9, 
 48.31  article 4, section 31, subdivision 2, is amended to read: 
 48.32     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
 48.33  safety aid according to Minnesota Statutes, section 123B.57, 
 48.34  subdivision 5: 
 48.35       $7,839,000 $5,356,000     .....     2004 
 48.36       $6,068,000 $1,920,000     .....     2005 
 49.1      The 2004 appropriation includes $1,516,000 for 2003 and 
 49.2   $6,323,000 $3,840,000 for 2004. 
 49.3      The 2005 appropriation includes $1,580,000 $960,000 for 
 49.4   2004 and $4,488,000 $960,000 for 2005. 
 49.5      Sec. 20.  Laws 2003, First Special Session chapter 9, 
 49.6   article 4, section 31, subdivision 3, is amended to read: 
 49.7      Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
 49.8   according to Minnesota Statutes, section 123B.53, subdivision 6: 
 49.9        $34,500,000 $35,598,000     .....     2004 
 49.10       $37,575,000 $31,220,000     .....     2005 
 49.11     The 2004 appropriation includes $5,586,000 for 2003 and 
 49.12  $28,914,000 $30,012,000 for 2004. 
 49.13     The 2005 appropriation includes $7,228,000 $7,503,000 for 
 49.14  2004 and $30,347,000 $23,717,000 for 2005. 
 49.15          E.  NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS
 49.16     Sec. 21.  Laws 2003, First Special Session chapter 9, 
 49.17  article 5, section 35, subdivision 2, is amended to read: 
 49.18     Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
 49.19  according to Minnesota Statutes, section 124D.111, and Code of 
 49.20  Federal Regulations, title 7, section 210.17:  
 49.21       $7,800,000 $7,650,000     .....     2004 
 49.22       $7,950,000 $7,760,000     .....     2005 
 49.23     Sec. 22.  [APPROPRIATIONS IN OTHER BILLS.] 
 49.24     Appropriations for forecast programs in this act supersede 
 49.25  appropriations for the same forecast programs in 2004 S.F. No. 
 49.26  2732, if enacted, or any other similarly styled bill.