1.1 	A bill for an act
1.2 	relating to education finance; providing funding for prekindergarten through 
1.3 	grade 12 education; appropriating money;amending Minnesota Statutes 2006, 
1.4 	sections 121A.19; 122A.21; 122A.415, by adding subdivisions; 123B.59, 
1.5 	subdivision 1; 123B.62; 124D.04, subdivisions 3, 6, 8, 9; 124D.05, by adding 
1.6 	a subdivision; 124D.118, subdivision 4; 124D.55; 125A.65, by adding a 
1.7 	subdivision; 125A.76, by adding a subdivision; 126C.10, subdivisions 1, 31, 35, 
1.8 	36, by adding a subdivision; 126C.17, subdivision 9; 126C.40, subdivision 1; 
1.9 	126C.45; 126C.51; 126C.52, subdivision 2, by adding a subdivision; 126C.53; 
1.10 	126C.55; 127A.45, subdivision 16; Minnesota Statutes 2007 Supplement, 
1.11 	sections 123B.54; 124D.531, subdivision 1; 126C.10, subdivision 34; 126C.44; 
1.12 	127A.49, subdivisions 2, 3; Laws 2007, chapter 146, article 1, section 24, 
1.13 	subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 
1.14 	11, 13, 14, 19, 20; article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; 
1.15 	article 4, section 16, subdivisions 2, 3, 6, 8; article 5, sections 11, subdivision 1; 
1.16 	13, subdivisions 2, 3, 4; article 7, section 4; article 9, section 17, subdivisions 2, 
1.17 	3, 4, 8, 9, 13; Laws 2007, First Special Session chapter 2, article 1, section 11, 
1.18 	subdivisions 1, 2, 6; proposing coding for new law in Minnesota Statutes, chapter 
1.19 	124D; repealing Minnesota Statutes 2006, sections 126C.10, subdivisions 35, 
1.20 	36; 126C.21, subdivision 1; 127A.45, subdivision 7a; Minnesota Statutes 2007 
1.21 	Supplement, section 126C.10, subdivision 34; Laws 2007, First Special Session 
1.22 	chapter 2, article 1, section 11, subdivisions 3, 4.
1.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.24 	ARTICLE 1
1.25 	E-12 EDUCATION

1.26 	Section 1. Minnesota Statutes 2006, section 121A.19, is amended to read:
1.27 	121A.19 DEVELOPMENTAL SCREENING AID.
1.28 	Each school year, the state must pay a district for each child or student screened by 
1.29 	the district according to the requirements of section 121A.17. The amount of state aid 
1.30 	for each child or student screened shall be: (1) $50 $75 for a child screened at age three; 
1.31 	(2) $40 $50 for a child screened at age four; (3) $30 $40 for a child screened at age five 
2.1 	or six prior to kindergarten; and (4) $30 for a student screened within 30 days after first 
2.2 	enrolling in a public school kindergarten if the student has not previously been screened 
2.3 	according to the requirements of section 121A.17. If this amount of aid is insufficient, 
2.4 	the district may permanently transfer from the general fund an amount that, when added 
2.5 	to the aid, is sufficient. Developmental screening aid shall not be paid for any student 
2.6 	who is screened more than 30 days after the first day of attendance at a public school 
2.7 	kindergarten, except if a student transfers to another public school kindergarten within 
2.8 	30 days after first enrolling in a Minnesota public school kindergarten program. In this 
2.9 	case, if the student has not been screened, the district to which the student transfers may 
2.10 	receive developmental screening aid for screening that student when the screening is 
2.11 	performed within 30 days of the transfer date.

2.12 	Sec. 2. Minnesota Statutes 2006, section 122A.21, is amended to read:
2.13 	122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.
2.14 		Subdivision 1.Licensure applications. Each application for the issuance, renewal, 
2.15 	or extension of a license to teach, including applications for licensure via portfolio under 
2.16 	subdivision 2, must be accompanied by a processing fee of $57. Each application for 
2.17 	issuing, renewing, or extending the license of a school administrator or supervisor must 
2.18 	be accompanied by a processing fee in the amount set by the Board of Teaching. The 
2.19 	processing fee for a teacher's license and for the licenses of supervisory personnel must 
2.20 	be paid to the executive secretary of the appropriate board. The executive secretary of 
2.21 	the board shall deposit the fees with the commissioner of finance. The fees as set by the 
2.22 	board are nonrefundable for applicants not qualifying for a license. However, a fee must 
2.23 	be refunded by the commissioner of finance in any case in which the applicant already 
2.24 	holds a valid unexpired license. The board may waive or reduce fees for applicants who 
2.25 	apply at the same time for more than one license.
2.26 		Subd. 2.Licensure via portfolio. (a) An eligible candidate may use licensure 
2.27 	via portfolio to obtain an initial licensure or to add a licensure field, consistent with the 
2.28 	applicable Board of Teaching licensure rules.
2.29 	(b) A candidate for initial licensure must submit to the Educator Licensing Division 
2.30 	at the department one portfolio demonstrating pedagogical competence and one portfolio 
2.31 	demonstrating content competence.
2.32 	(c) A candidate seeking to add a licensure field must submit to the Educator 
2.33 	Licensing Division at the department one portfolio demonstrating content competence.
2.34 	(d) A candidate must pay to the executive secretary of the Board of Teaching a 
2.35 	$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio 
3.1 	submitted subsequently. The fees must be paid to the executive secretary of the Board of 
3.2 	Teaching. The revenue generated from the fee must be deposited in an education licensure 
3.3 	portfolio account in the special revenue fund. The fees set by the Board of Teaching are 
3.4 	nonrefundable for applicants not qualifying for a license. The Board of Teaching may 
3.5 	waive or reduce fees for candidates based on financial need.

3.6 	Sec. 3. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
3.7 	subdivision to read:
3.8 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal year 2010 
3.9 	and later, the basic alternative teacher compensation aid for a school district with a plan 
3.10 	approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative 
3.11 	teacher compensation revenue under subdivision 1. The basic alternative teacher 
3.12 	compensation aid for an intermediate school district or charter school with a plan approved 
3.13 	under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals 
3.14 	$260 times the number of pupils enrolled in the school on October 1 of the previous 
3.15 	fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 
3.16 	of operation, times the ratio of the sum of the alternative teacher compensation aid and 
3.17 	alternative teacher compensation levy for all participating school districts to the maximum 
3.18 	alternative teacher compensation revenue for those districts under subdivision 1.
3.19 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
3.20 	teacher compensation aid entitlement must not exceed $47,485,000 for fiscal year 2010 
3.21 	and $76,067,000 for fiscal year 2011 and later. The commissioner must limit the amount 
3.22 	of alternative teacher compensation aid approved under this section so as not to exceed 
3.23 	these limits.

3.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
3.25 	and later.

3.26 	Sec. 4. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
3.27 	subdivision to read:
3.28 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2010 and later, 
3.29 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
3.30 	compensation aid equals the product of: (1) the difference between the district's alternative 
3.31 	teacher compensation revenue, under subdivision 1, and the district's basic alternative 
3.32 	teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of 
3.33 	the district's adjusted net tax capacity per adjusted pupil unit to $5,913.

4.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
4.2 	and later.

4.3 	Sec. 5. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
4.4 	subdivision to read:
4.5 		Subd. 6.Alternative teacher compensation aid. (a) For fiscal year 2010 and 
4.6 	later, a district's alternative teacher compensation equalization aid equals the district's 
4.7 	alternative teacher compensation revenue, minus the district's basic alternative teacher 
4.8 	compensation aid, minus the district's alternative teacher compensation levy. If a district 
4.9 	does not levy the entire amount permitted under subdivision 5, the alternative teacher 
4.10 	compensation equalization aid must be reduced in proportion to the actual amount levied.
4.11 	(b) A district's alternative teacher compensation aid equals the sum of the 
4.12 	district's basic alternative teacher compensation aid and the district's alternative teacher 
4.13 	compensation equalization aid.

4.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
4.15 	and later.

4.16 	Sec. 6. Minnesota Statutes 2007 Supplement, section 123B.54, is amended to read:
4.17 	123B.54 DEBT SERVICE APPROPRIATION.
4.18 	(a) $14,813,000 $14,814,000 in fiscal year 2008, $11,124,000 $9,109,000 in fiscal 
4.19 	year 2009, $8,866,000 $7,286,000 in fiscal year 2010, and $6,631,000 $6,878,000 in 
4.20 	fiscal year 2011 and later are appropriated from the general fund to the commissioner of 
4.21 	education for payment of debt service equalization aid under section 123B.53.
4.22 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
4.23 	money specifically appropriated for the same purpose in any year from any state fund.

4.24 	Sec. 7. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:
4.25 		Subdivision 1.To qualify. (a) An independent or special school district qualifies to 
4.26 	participate in the alternative facilities bonding and levy program if the district has:
4.27 	(1) more than 66 students per grade;
4.28 	(2) over 1,850,000 square feet of space and the average age of building space is 15 
4.29 	years or older or over 1,500,000 square feet and the average age of building space is 
4.30 	35 years or older;
5.1 	(3) insufficient funds from projected health and safety revenue and capital facilities 
5.2 	revenue to meet the requirements for deferred maintenance, to make accessibility 
5.3 	improvements, or to make fire, safety, or health repairs; and
5.4 	(4) a ten-year facility plan approved by the commissioner according to subdivision 2.
5.5 	(b) An independent or special school district not eligible to participate in the 
5.6 	alternative facilities bonding and levy program under paragraph (a) qualifies for limited 
5.7 	participation in the program if the district has:
5.8 	(1) one or more health and safety projects with an estimated cost of $500,000 or 
5.9 	more per site that would qualify for health and safety revenue except for the project size 
5.10 	limitation in section 123B.57, subdivision 1, paragraph (b); and 
5.11 	(2) insufficient funds from capital facilities revenue to fund those projects.
5.12 	(c) Notwithstanding the square footage limitation in paragraph (a), clause (2), 
5.13 	a school district that qualified for eligibility under paragraph (a) as of July 1, 2007, 
5.14 	remains eligible for funding under this section as long as the district continues to meet 
5.15 	the requirements of paragraph (a), clauses (1), (3), and (4).

5.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.17 	Sec. 8. Minnesota Statutes 2006, section 123B.62, is amended to read:
5.18 	123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
5.19 	(a) In addition to other bonding authority, with approval of the commissioner, a 
5.20 	district may issue general obligation bonds for certain capital projects under this section. 
5.21 	The bonds must be used only to make capital improvements including:
5.22 	(1) under section 126C.10, subdivision 14, total operating capital revenue uses 
5.23 	specified in clauses (4), (6), (7), (8), (9), and (10); 
5.24 	(2) the cost of energy modifications;
5.25 	(3) improving disability accessibility to school buildings; and
5.26 	(4) bringing school buildings into compliance with life and safety codes and fire 
5.27 	codes; and
5.28 	(5) modifying buildings and equipment for security.
5.29 	(b) Before a district issues bonds under this subdivision, it must publish notice 
5.30 	of the intended projects, the amount of the bond issue, and the total amount of district 
5.31 	indebtedness.
5.32 	(c) A bond issue tentatively authorized by the board under this subdivision becomes 
5.33 	finally authorized unless a petition signed by more than 15 percent of the registered voters 
5.34 	of the district is filed with the school board within 30 days of the board's adoption of a 
6.1 	resolution stating the board's intention to issue bonds. The percentage is to be determined 
6.2 	with reference to the number of registered voters in the district on the last day before the 
6.3 	petition is filed with the board. The petition must call for a referendum on the question of 
6.4 	whether to issue the bonds for the projects under this section. The approval of 50 percent 
6.5 	plus one of those voting on the question is required to pass a referendum authorized 
6.6 	by this section.
6.7 	(d) The bonds must be paid off within ten15 years of issuance. The bonds must be 
6.8 	issued in compliance with chapter 475, except as otherwise provided in this section. A tax 
6.9 	levy must be made for the payment of principal and interest on the bonds in accordance 
6.10 	with section 475.61. The sum of the tax levies under this section and section 123B.61 for 
6.11 	each year must not exceed the limit specified in section 123B.61. The levy for each year 
6.12 	must be reduced as provided in section 123B.61. A district using an excess amount in the 
6.13 	debt redemption fund to retire the bonds shall report the amount used for this purpose to 
6.14 	the commissioner by July 15 of the following fiscal year. A district having an outstanding 
6.15 	capital loan under section 126C.69 or an outstanding debt service loan under section 
6.16 	126C.68 must not use an excess amount in the debt redemption fund to retire the bonds. 
6.17 	(e) Notwithstanding paragraph (d), bonds issued by a district within the first 
6.18 	five years following voter approval of a combination according to section 123A.37, 
6.19 	subdivision 2, must be paid off within 20 years of issuance. All the other provisions and 
6.20 	limitation of paragraph (d) apply. 

6.21 	Sec. 9. Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:
6.22 		Subd. 3.Pupils in adjoining states. Except as provided under an agreement with 
6.23 	an adjoining state under section 124D.041, a non-Minnesota pupil who resides in an 
6.24 	adjoining state in a district that borders Minnesota may enroll in a Minnesota district if 
6.25 	either the board of the district in which the pupil resides or state in which the pupil resides 
6.26 	pays tuition to the district in which the pupil is enrolled.

6.27 	Sec. 10. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
6.28 		Subd. 6.Tuition payments. (a) In each odd-numbered year, before March 1, the 
6.29 	commissioner must agree to rates of tuition for Minnesota elementary and secondary 
6.30 	pupils attending in other states for the next two fiscal years when the other state agrees to 
6.31 	negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the 
6.32 	designated authority in each state for pupils who reside in an adjoining state and enroll in 
6.33 	a Minnesota district. The rates must be at least equal to the tuition specified in section 
6.34 	124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate, 
7.1 	a Minnesota school district may negotiate a tuition rate with the school district in the other 
7.2 	state that sends a pupil to or receives a pupil from the Minnesota school district. The 
7.3 	tuition rate for a pupil with a disability must be equal to the actual cost of instruction and 
7.4 	services provided. The resident district of a Minnesota pupil attending in another state 
7.5 	under this section must pay the amount of tuition agreed upon in this section to the district 
7.6 	of attendance, prorated on the basis of the proportion of the school year attended. 
7.7 	(b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached 
7.8 	between the state of Minnesota and an adjoining state pursuant to section 124D.041, 
7.9 	the provisions of section 124D.041 and the agreement shall apply to all enrollment 
7.10 	transfers between Minnesota and the adjoining state, and provisions of paragraph (a) 
7.11 	and subdivision 9 shall not apply.

7.12 	Sec. 11. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
7.13 		Subd. 8.Effective if reciprocal. This section is effective with respect to South 
7.14 	Dakota upon enactment of provisions by South Dakota that the commissioner determines 
7.15 	are essentially similar to the provisions for Minnesota pupils in this section. This section 
7.16 	is effective with respect to any other bordering state upon enactment of provisions by the 
7.17 	bordering state that the commissioner determines are essentially similar to the provisions 
7.18 	for Minnesota pupils in this section.

7.19 	Sec. 12. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
7.20 		Subd. 9.Appeal to the commissioner. If a Minnesota school district cannot agree 
7.21 	with an adjoining state on a tuition rate for a Minnesota student attending school in that 
7.22 	state and that state has met the requirements in subdivision 8, then the student's parent or 
7.23 	guardian may request that the commissioner agree on set a tuition rate for the student. The 
7.24 	Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

7.25 	Sec. 13. [124D.041] RECIPROCITY WITH ADJOINING STATES.
7.26 		Subdivision 1.Agreements. (a) The commissioner may enter into an agreement 
7.27 	with the designated authority from an adjoining state to establish an enrollment options 
7.28 	program between Minnesota and the adjoining state. Any agreement entered into pursuant 
7.29 	to this section must specify the following:
7.30 	(1) for students who are not residents of Minnesota, the enrollment options program 
7.31 	applies only to a student whose resident school district borders Minnesota;
7.32 	(2) the commissioner must negotiate equal, reciprocal rates with the designated 
7.33 	authority from the adjoining state;
8.1 	(3) if the adjoining state sends more students to Minnesota than Minnesota sends to 
8.2 	the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed 
8.3 	upon under clause (2) for the excess number of students sent to Minnesota;
8.4 	(4) if Minnesota sends more students to the adjoining state than the adjoining state 
8.5 	sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed 
8.6 	upon under clause (2) for the excess number of students sent to the adjoining state;
8.7 	(5) the application procedures for the enrollment options program between 
8.8 	Minnesota and the adjoining state;
8.9 	(6) the reasons for which an application for the enrollment options program between 
8.10 	Minnesota and the adjoining may be denied; and
8.11 	(7) that a Minnesota school district is not responsible for transportation for any 
8.12 	resident student attending school in an adjoining state under the provisions of this section. 
8.13 	A Minnesota school district may, at its discretion, provide transportation services for 
8.14 	such a student.
8.15 	(b) Any agreement entered into pursuant to this section may specify additional terms 
8.16 	relating to any student in need of special education and related services pursuant to chapter 
8.17 	125A. Any additional terms must apply equally to both states.
8.18 		Subd. 2.Pupil accounting. (a) Any student from an adjoining state enrolled in 
8.19 	Minnesota pursuant to this section is included in the receiving school district's average 
8.20 	daily membership and pupil units according to section 126C.05 as if the student were 
8.21 	a resident of another Minnesota school district attending the receiving school district 
8.22 	under section 124D.03.
8.23 	(b) Any Minnesota resident student enrolled in an adjoining state pursuant to this 
8.24 	section is included in the resident school district's average daily membership and pupil 
8.25 	units according to section 126C.05 as if the student were a resident of the district attending 
8.26 	another Minnesota school district under section 124D.03.
8.27 		Subd. 3.Procedures. (a) The Department of Education must establish procedures 
8.28 	relating to the application process, the collection or payment of funds under the provisions 
8.29 	of any agreement established pursuant to this section, and the collection of data necessary 
8.30 	to implement any agreement established pursuant to this section.
8.31 	(b) Notwithstanding sections 124A.04 and 124A.05, if an agreement is established 
8.32 	between Minnesota and an adjoining state pursuant to this section, the provisions of this 
8.33 	section and the agreement shall apply to all enrollment transfers between Minnesota and 
8.34 	the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary, 
8.35 	including provisions relating to tuition payments, shall not apply.
9.1 	(c) Notwithstanding paragraph (a), any payments to adjoining states under this 
9.2 	section shall be made according to section 127A.45, subdivision 16.
9.3 	(d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b), 
9.4 	and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not 
9.5 	apply to: (i) enrollment transfers between Minnesota and a school district in an adjoining 
9.6 	state enrolling fewer than 150 pupils that is exempted from participation in the program 
9.7 	under the laws of the adjoining state; or (ii) enrollment transfers between Minnesota and a 
9.8 	school district in an adjoining state under a board agreement initiated in fiscal year 2009 to 
9.9 	serve students in grade levels discontinued by the resident district.

9.10 	Sec. 14. Minnesota Statutes 2006, section 124D.05, is amended by adding a 
9.11 	subdivision to read:
9.12 		Subd. 2a.Exception. Notwithstanding subdivisions 1 and 2, if an agreement 
9.13 	is reached between the state of Minnesota and an adjoining state pursuant to section 
9.14 	124D.041, the provisions of section 124D.041 and the agreement shall apply to all 
9.15 	enrollment transfers between Minnesota and the adjoining state, and provisions of 
9.16 	subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments, 
9.17 	shall not apply.

9.18 	Sec. 15. Minnesota Statutes 2006, section 124D.118, subdivision 4, is amended to read:
9.19 		Subd. 4.Reimbursement. In accordance with program guidelines, the 
9.20 	commissioner shall reimburse each participating public or nonpublic school 1420 cents 
9.21 	for each half-pint of milk that is served to kindergarten students and is not part of a school 
9.22 	lunch or breakfast reimbursed under section 124D.111 or 124D.1158.

9.23 	Sec. 16. [124D.141] STATE ADVISORY COUNCIL ON EARLY CHILDHOOD 
9.24 	EDUCATION AND CARE.
9.25 		Subdivision 1.Membership; Duties. Two members of the house of representatives, 
9.26 	one appointed by the speaker and one appointed by the minority leader; and two members 
9.27 	of the senate appointed by the Subcommittee on Committees of the Committee on Rules 
9.28 	and Administration, including one member of the minority; and two parents with a 
9.29 	child under age six, shall be added to the membership of the State Advisory Council on 
9.30 	Early Education and Care. The council must fulfill the duties required under the federal 
9.31 	Improving Head Start for School Readiness Act of 2007 as provided in Public Law 
9.32 	110-134.
10.1 		Subd. 2.Additional duties. The following duties are added to those assigned 
10.2 	to the council under federal law:
10.3 	(1) make recommendations on the most efficient and effective way to leverage state 
10.4 	and federal funding streams for early childhood and child care programs;
10.5 	(2) make recommendations on how to coordinate or colocate early childhood and 
10.6 	child care programs in one state Office of Early Learning;
10.7 	(3) review program evaluations regarding high-quality early childhood programs; 
10.8 	and
10.9 	(4) make recommendations to the governor and legislature, including proposed 
10.10 	legislation on how to most effectively create a high quality early childhood system in 
10.11 	Minnesota in order to improve the educational outcomes of children so that all children 
10.12 	are school-ready by 2020.
10.13 		Subd. 3.Administration. An amount up to $12,500 from federal child care 
10.14 	and development fund administrative funds and up to $12,500 from prekindergarten 
10.15 	exploratory project funds appropriated under Laws 2007, chapter 147, article 19, section 
10.16 	3, may be used to reimburse the parents on the council and for technical assistance and 
10.17 	administrative support of the State Advisory Council on Early Childhood Education and 
10.18 	Care. This funding stream is for fiscal year 2009. The council may pursue additional 
10.19 	funds from state, federal, and private sources. If additional operational funds are received, 
10.20 	the council must reduce the amount of prekindergarten exploratory project funds used 
10.21 	in an equal amount.

10.22 	Sec. 17. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, 
10.23 	is amended to read:
10.24 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
10.25 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
10.26 	aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during 
10.27 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
10.28 	section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 
10.29 	2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 
10.30 	year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, 
10.31 	subdivision 3. The state total adult basic education aid for fiscal year 2008 equals 
10.32 	$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 
10.33 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
10.34 	state total adult basic education aid for later fiscal years equals:
11.1 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
11.2 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
11.3 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
11.4 	(2) the lesser of:
11.5 	(i) 1.03; or
11.6 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
11.7 	program year to the state total contact hours in the second prior program year the average 
11.8 	growth in state total contact hours over the prior 10 program years.
11.9 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
11.10 	aid must be set aside for adult basic education supplemental service grants under section 
11.11 	124D.522.
11.12 	(b) The state total adult basic education aid, excluding basic population aid, equals 
11.13 	the difference between the amount computed in paragraph (a), and the state total basic 
11.14 	population aid under subdivision 2.

11.15 	Sec. 18. Minnesota Statutes 2006, section 124D.55, is amended to read:
11.16 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
11.17 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
11.18 	individual for the full battery of a general education development (GED) test, but not 
11.19 	more than $20$40 for an eligible individual.

11.20 	Sec. 19. Minnesota Statutes 2006, section 125A.65, is amended by adding a 
11.21 	subdivision to read:
11.22 		Subd. 11.Third-party reimbursement. The Minnesota State Academies must seek 
11.23 	reimbursement under section 125A.21 from third parties for the cost of services provided 
11.24 	by the Minnesota State Academies whenever the services provided are otherwise covered 
11.25 	by a child's public or private health plan.

11.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
11.27 	for revenue in fiscal years 2008 and later.

11.28 	Sec. 20. Minnesota Statutes 2006, section 125A.76, is amended by adding a 
11.29 	subdivision to read:
11.30 		Subd. 4a.Adjustments for tuition reciprocity with adjoining states. (a) If an 
11.31 	agreement is reached between the state of Minnesota and an adjoining state pursuant to 
11.32 	section 124D.041 that requires a special education tuition payment from the state of 
12.1 	Minnesota to the adjoining state, the tuition payment shall be made from the special 
12.2 	education aid appropriation for that year, and the state total special education aid under 
12.3 	subdivision 4 shall be reduced by the amount of the payment.
12.4 	(b) If an agreement is reached between the state of Minnesota and an adjoining state 
12.5 	pursuant to section 124D.041 that requires a special education tuition payment from 
12.6 	an adjoining state to the state of Minnesota, the special education aid appropriation for 
12.7 	that year and the state total special education aid under subdivision 4 shall be increased 
12.8 	by the amount of the payment.
12.9 	(c) If an agreement is reached between the state of Minnesota and an adjoining state 
12.10 	pursuant to section 124D.041 that requires special education tuition payments to be made 
12.11 	between the two states and not between districts in the two states, the special education aid 
12.12 	for a Minnesota school district serving a student with a disability from the adjoining state 
12.13 	shall be calculated according to section 127A.47, subdivision 7, except that no reduction 
12.14 	shall be made in the special education aid paid to the resident district.

12.15 	Sec. 21. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:
12.16 		Subdivision 1.General education revenue. (a) For fiscal year 2006 and later years 
12.17 	2008 and 2009, the general education revenue for each district equals the sum of the 
12.18 	district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 
12.19 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
12.20 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
12.21 	alternative teacher compensation revenue under section 122A.415, and transition revenue.
12.22 	(b) For fiscal year 2010 and later, the general education revenue for each district 
12.23 	equals the sum of the district's basic revenue, extended time revenue, gifted and talented 
12.24 	revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, 
12.25 	elementary sparsity revenue, transportation sparsity revenue, total operating capital 
12.26 	revenue, equity revenue, and transition revenue.

12.27 	Sec. 22. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
12.28 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
12.29 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
12.30 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
12.31 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
12.32 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
12.33 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
12.34 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
13.1 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
13.2 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
13.3 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
13.4 	(b) A district's transition revenue for fiscal year years 2006 and later through 2009
13.5 	equals the sum of the product of the district's transition allowance times the district's 
13.6 	adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue 
13.7 	under subdivision 31a.
13.8 	(c) A district's transition revenue for fiscal year 2010 and later equals the sum of 
13.9 	the product of the district's transition allowance times the district's adjusted marginal cost 
13.10 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a 
13.11 	plus the district's transition for tuition reciprocity revenue under subdivision 31c.

13.12 	Sec. 23. Minnesota Statutes 2006, section 126C.10, is amended by adding a 
13.13 	subdivision to read:
13.14 		Subd. 31c.Transition for tuition reciprocity revenue. For the first year that a 
13.15 	tuition reciprocity agreement with an adjoining state is in effect under section 124D.041 
13.16 	and later, a school district's transition for tuition reciprocity revenue equals the greater of 
13.17 	zero or the difference between the sum of the general education revenue and net tuition 
13.18 	revenue the district would have received for pupils enrolled under section 124D.041 for 
13.19 	the first year the agreement is in effect if the agreement had not been in effect, and the 
13.20 	sum of the district's general education revenue and net tuition revenue for the first year 
13.21 	the agreement is in effect.

13.22 	Sec. 24. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, 
13.23 	is amended to read:
13.24 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 
13.25 	2007 and later 2008 and 2009, the basic alternative teacher compensation aid for a 
13.26 	school district with a plan approved under section 122A.414, subdivision 2b, equals 65
13.27 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
13.28 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
13.29 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
13.30 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
13.31 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
13.32 	year for a charter school in the first year of operation, times the ratio of the sum of the 
13.33 	alternative teacher compensation aid and alternative teacher compensation levy for all 
14.1 	participating school districts to the maximum alternative teacher compensation revenue 
14.2 	for those districts under section 122A.415, subdivision 1.
14.3 	(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
14.4 	the state total basic alternative teacher compensation aid entitlement must not exceed 
14.5 	$75,636,000$48,060,000 for fiscal year 2007 2008, and later $53,267,000 for fiscal year 
14.6 	2009. The commissioner must limit the amount of alternative teacher compensation aid 
14.7 	approved under section 122A.415 so as not to exceed these limits.

14.8 	Sec. 25. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:
14.9 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 and later
14.10 	years 2008 and 2009, the alternative teacher compensation levy for a district receiving 
14.11 	basic alternative teacher compensation aid equals the product of (1) the difference between 
14.12 	the district's alternative teacher compensation revenue and the district's basic alternative 
14.13 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
14.14 	net tax capacity per adjusted pupil unit to $5,913.

14.15 	Sec. 26. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:
14.16 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year 2007 and later
14.17 	years 2008 and 2009, a district's alternative teacher compensation equalization aid equals 
14.18 	the district's alternative teacher compensation revenue minus the district's basic alternative 
14.19 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
14.20 	district does not levy the entire amount permitted, the alternative teacher compensation 
14.21 	equalization aid must be reduced in proportion to the actual amount levied.
14.22 	(b) A district's alternative teacher compensation aid equals the sum of the 
14.23 	district's basic alternative teacher compensation aid and the district's alternative teacher 
14.24 	compensation equalization aid.

14.25 	Sec. 27. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
14.26 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
14.27 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
14.28 	referendum called for the purpose. The referendum may be called by the board or shall be 
14.29 	called by the board upon written petition of qualified voters of the district. The referendum 
14.30 	must be conducted one or two calendar years before the increased levy authority, if 
14.31 	approved, first becomes payable. Only one election to approve an increase may be held 
14.32 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
14.33 	referendum must be held on the first Tuesday after the first Monday in November. The 
15.1 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
15.2 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
15.3 	per resident marginal cost pupil unit that differs from year to year over the number of 
15.4 	years for which the increased revenue is authorized or may state that the amount shall 
15.5 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be 
15.6 	the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot 
15.7 	may state that existing referendum levy authority is expiring. In this case, the ballot may 
15.8 	also compare the proposed levy authority to the existing expiring levy authority, and 
15.9 	express the proposed increase as the amount, if any, over the expiring referendum levy 
15.10 	authority. The ballot must designate the specific number of years, not to exceed ten, for 
15.11 	which the referendum authorization applies. The ballot, including a ballot on the question 
15.12 	to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate 
15.13 	the term "per resident marginal cost pupil unit" as "per pupil." The notice required under 
15.14 	section 275.60 may be modified to read, in cases of renewing existing levies at the same 
15.15 	amount per pupil as in the previous year:
15.16 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
15.17 	FOR A PROPERTY TAX INCREASE ARE VOTING TO EXTEND AN EXISTING 
15.18 	PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIRE."
15.19 	The ballot may contain a textual portion with the information required in this 
15.20 	subdivision and a question stating substantially the following:
15.21 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
15.22 	School District No. .., be approved?"
15.23 	If approved, an amount equal to the approved revenue per resident marginal cost 
15.24 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
15.25 	the year after the levy is certified shall be authorized for certification for the number of 
15.26 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
15.27 	subsequent referendum.
15.28 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
15.29 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
15.30 	and the proposed revenue increase. The board need not mail more than one notice to any 
15.31 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
15.32 	those shown to be owners on the records of the county auditor or, in any county where 
15.33 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
15.34 	Every property owner whose name does not appear on the records of the county auditor 
15.35 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
15.36 	has requested in writing that the county auditor or county treasurer, as the case may be, 
16.1 	include the name on the records for this purpose. The notice must project the anticipated 
16.2 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
16.3 	homesteads, apartments, and commercial-industrial property within the school district.
16.4 	The notice for a referendum may state that an existing referendum levy is expiring 
16.5 	and project the anticipated amount of increase over the existing referendum levy in 
16.6 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
16.7 	homesteads, apartments, and commercial-industrial property within the district.
16.8 	The notice must include the following statement: "Passage of this referendum will 
16.9 	result in an increase in your property taxes." However, in cases of renewing existing 
16.10 	levies, the notice may include the following statement: "Passage of this referendum may 
16.11 	result in an increase in your property taxes extends an existing operating referendum at the 
16.12 	same amount per pupil as in the previous year." 
16.13 	(c) A referendum on the question of revoking or reducing the increased revenue 
16.14 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
16.15 	by the board upon the written petition of qualified voters of the district. A referendum to 
16.16 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
16.17 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
16.18 	voters of the district pursuant to paragraph (a) must be available to the school district at 
16.19 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
16.20 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
16.21 	referendum revenue for any specific year and for years thereafter.
16.22 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
16.23 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
16.24 	the petition is filed with the board. A referendum invoked by petition must be held on the 
16.25 	date specified in paragraph (a).
16.26 	(e) The approval of 50 percent plus one of those voting on the question is required to 
16.27 	pass a referendum authorized by this subdivision.
16.28 	(f) At least 15 days before the day of the referendum, the district must submit a 
16.29 	copy of the notice required under paragraph (b) to the commissioner and to the county 
16.30 	auditor of each county in which the district is located. Within 15 days after the results 
16.31 	of the referendum have been certified by the board, or in the case of a recount, the 
16.32 	certification of the results of the recount by the canvassing board, the district must notify 
16.33 	the commissioner of the results of the referendum.

16.34 	EFFECTIVE DATE. This section is effective for elections conducted on or after 
16.35 	July 1, 2008.

17.1 	Sec. 28. Minnesota Statutes 2006, section 126C.40, subdivision 1, is amended to read:
17.2 		Subdivision 1.To lease building or land. (a) When an independent or a special 
17.3 	school district or a group of independent or special school districts finds it economically 
17.4 	advantageous to rent or lease a building or land for any instructional purposes or for 
17.5 	school storage or furniture repair, and it determines that the operating capital revenue 
17.6 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
17.7 	apply to the commissioner for permission to make an additional capital expenditure levy 
17.8 	for this purpose. An application for permission to levy under this subdivision must contain 
17.9 	financial justification for the proposed levy, the terms and conditions of the proposed 
17.10 	lease, and a description of the space to be leased and its proposed use.
17.11 	(b) The criteria for approval of applications to levy under this subdivision must 
17.12 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
17.13 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
17.14 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
17.15 	the proposed lease to the space needs and the financial condition of the district. The 
17.16 	commissioner must not authorize a levy under this subdivision in an amount greater than 
17.17 	the cost to the district of renting or leasing a building or land for approved purposes. 
17.18 	The proceeds of this levy must not be used for custodial or other maintenance services. 
17.19 	A district may not levy under this subdivision for the purpose of leasing or renting a 
17.20 	district-owned building or site to itself.
17.21 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
17.22 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
17.23 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
17.24 	building addition or additions used primarily for regular kindergarten, elementary, or 
17.25 	secondary instruction that contains more than 20 percent of the square footage of the 
17.26 	previously existing building.
17.27 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
17.28 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
17.29 	is needed by the district to make payments required by a lease purchase agreement, 
17.30 	installment purchase agreement, or other deferred payments agreement authorized by law, 
17.31 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
17.32 	the commissioner under this paragraph may be in the amount needed by the district to 
17.33 	make payments required by a lease purchase agreement, installment purchase agreement, 
17.34 	or other deferred payments agreement authorized by law, provided that any agreement 
17.35 	include a provision giving the school districts the right to terminate the agreement 
17.36 	annually without penalty.
18.1 	(e) The total levy under this subdivision for a district for any year must not exceed 
18.2 	$100$150 times the resident pupil units for the fiscal year to which the levy is attributable.
18.3 	(f) For agreements for which a review and comment have been submitted to the 
18.4 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
18.5 	this subdivision excludes expenditures on stadiums.
18.6 	(g) The commissioner of education may authorize a school district to exceed the 
18.7 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
18.8 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
18.9 	for not more than five years if the district meets the following criteria:
18.10 	(1) the school district has been experiencing pupil enrollment growth in the 
18.11 	preceding five years;
18.12 	(2) the purpose of the increased levy is in the long-term public interest;
18.13 	(3) the purpose of the increased levy promotes colocation of government services; 
18.14 	and
18.15 	(4) the purpose of the increased levy is in the long-term interest of the district by 
18.16 	avoiding over construction of school facilities.
18.17 	(h) A school district that is a member of an intermediate school district may include 
18.18 	in its authority under this section the costs associated with leases of administrative and 
18.19 	classroom space for intermediate school district programs. This authority must not 
18.20 	exceed $25$43  times the adjusted marginal cost pupil units of the member districts. This 
18.21 	authority is in addition to any other authority authorized under this section.
18.22 	(i) In addition to the allowable capital levies in paragraph (a), a district that is a 
18.23 	member of the "Technology and Information Education Systems" data processing joint 
18.24 	board, that finds it economically advantageous to enter into a lease purchase agreement for 
18.25 	a building for a group of school districts or special school districts for staff development 
18.26 	purposes, may levy for its portion of lease costs attributed to the district within the total 
18.27 	levy limit in paragraph (e).

18.28 	Sec. 29. Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:
18.29 	126C.44 SAFE SCHOOLS LEVY.
18.30 	(a) Each district may make a levy on all taxable property located within the district 
18.31 	for the purposes specified in this section. The maximum amount which may be levied 
18.32 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
18.33 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
18.34 	used for directly funding the following purposes or for reimbursing the cities and counties 
18.35 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
19.1 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
19.2 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
19.3 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
19.4 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
19.5 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
19.6 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
19.7 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
19.8 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
19.9 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
19.10 	dependency counselors to help provide early responses to problems. For expenditures 
19.11 	under clause (1), the district must initially attempt to contract for services to be provided 
19.12 	by peace officers or sheriffs with the police department of each city or the sheriff's 
19.13 	department of the county within the district containing the school receiving the services. If 
19.14 	a local police department or a county sheriff's department does not wish to provide the 
19.15 	necessary services, the district may contract for these services with any other police or 
19.16 	sheriff's department located entirely or partially within the school district's boundaries. 
19.17 	(b) A school district that is a member of an intermediate school district may 
19.18 	include in its authority under this section the costs associated with safe schools activities 
19.19 	authorized under paragraph (a) for intermediate school district programs. This authority 
19.20 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
19.21 	This authority is in addition to any other authority authorized under this section. Revenue 
19.22 	raised under this paragraph must be transferred to the intermediate school district.
19.23 	(c) If A school district spendsmust set aside at least $3 per adjusted marginal cost 
19.24 	pupil unit of the safe schools levy proceeds for the purposes authorized under paragraph 
19.25 	(a), clause (6),. The district must annually certify that its total spending on services 
19.26 	provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 
19.27 	its expenditures for these purposes, excluding amounts spent under this section, in the 
19.28 	previous year plus the amount spent under this section.

19.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010.

19.30 	Sec. 30. Minnesota Statutes 2006, section 126C.45, is amended to read:
19.31 	126C.45 ICE ARENA LEVY.
19.32 	(a) Each year, an independent school district operating and maintaining an ice arena, 
19.33 	may levy for the net operational costs of the ice arena. The levy may not exceed 90 
20.1 	percent of the net actual costs of operation of the arena for the previous year. Net actual 
20.2 	costs are defined as operating costs less any operating revenues.
20.3 	(b) Any district operating and maintaining an ice arena must demonstrate to the 
20.4 	satisfaction of the Office of Monitoring in the department that the district will offer equal 
20.5 	sports opportunities for male and female students to use its ice arena, particularly in areas 
20.6 	of access to prime practice time, team support, and providing junior varsity and younger 
20.7 	level teams for girls' ice sports and ice sports offerings.

20.8 	Sec. 31. Minnesota Statutes 2006, section 126C.51, is amended to read:
20.9 	126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
20.10 	Notwithstanding the provisions of section 471.69 or 471.75, or of any other 
20.11 	provision of law which by per capita limitation, local tax rate limitation, or otherwise, 
20.12 	limits the power of a district to incur any debt or to issue any warrant or order, a school 
20.13 	district or intermediate school district has the powers in sections 126C.50 to 126C.56
20.14 	specifically conferred upon it and all powers incident and necessary to carrying out the 
20.15 	purposes of sections 126C.50 to 126C.56. 

20.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.17 	Sec. 32. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
20.18 		Subd. 2.Limitations. The board of any school district may also borrow money 
20.19 	in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in 
20.20 	anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of 
20.21 	federal school aids to be distributed by or through the department. The aggregate of such 
20.22 	borrowings under this subdivision shall never exceed 75 percent of such aids which are 
20.23 	receivable by said school district in the schoolfiscal year (from July 1 to June 30) in which 
20.24 	the money is borrowed, as estimated and certified by the commissioner. 

20.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.26 	Sec. 33. Minnesota Statutes 2006, section 126C.52, is amended by adding a 
20.27 	subdivision to read:
20.28 		Subd. 3.Intermediate school districts. (a) The board of an intermediate school 
20.29 	district may borrow money in the manner and subject to the limitations set forth in 
20.30 	sections 126C.50 to 126C.56 in anticipation of the receipt of:
20.31 	(1) state aids for schools as defined in Minnesota Statutes;
20.32 	(2) federal school aids to be distributed by or through the department; and
21.1 	(3) membership fees and tuition payments from its member school districts.
21.2 	The aggregate of such borrowings under this subdivision shall never exceed 75 
21.3 	percent of such aids, fees, and tuition payments which are receivable by the intermediate 
21.4 	school district in the fiscal year in which the money is borrowed, as estimated and certified 
21.5 	by the commissioner.
21.6 	(b) The board of an intermediate school district may, upon receipt of a written 
21.7 	resolution by each of its member school districts, pledge the member district's full faith 
21.8 	and credit and unlimited taxing powers to repay each member district's pro rata share of 
21.9 	any certificates issued or the amount paid by the state under section 126C.55, subdivision 
21.10 	2, plus interest, if the revenues specified in paragraph (a) and any other revenues of the 
21.11 	intermediate school district are insufficient to do so.

21.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.13 	Sec. 34. Minnesota Statutes 2006, section 126C.53, is amended to read:
21.14 	126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF 
21.15 	INDEBTEDNESS.
21.16 	The board of a school district or intermediate school district may authorize and 
21.17 	effect such borrowing, and may issue such certificates of indebtedness upon passage of 
21.18 	a resolution specifying the amount and purposes for which it deems such borrowing is 
21.19 	necessary. The resolution must be adopted by a vote of at least two-thirds of its members. 
21.20 	The board must fix the amount, date, maturity, form, denomination, and other details of 
21.21 	the certificates of indebtedness, not inconsistent with this chapter. The board must fix the 
21.22 	date and place for receipt of bids for the purchase of the certificates when bids are required 
21.23 	and direct the clerk to give notice of the date and place for bidding.

21.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.25 	Sec. 35. Minnesota Statutes 2006, section 126C.55, is amended to read:
21.26 	126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL 
21.27 	DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
21.28 		Subdivision 1.Definitions. For the purposes of this section, the term "debt 
21.29 	obligation" means:
21.30 	(1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
21.31 	(2) a certificate of participation issued under section 126C.40, subdivision 6; or 
21.32 	(3) a general obligation bond.
22.1 		Subd. 2.Notifications; payment; appropriation. (a) If a school district or 
22.2 	intermediate school district believes that it may be unable to make a principal or interest 
22.3 	payment on any outstanding debt obligation on the date that payment is due, it must 
22.4 	notify the commissioner as soon as possible, but not less than 15 working days before the 
22.5 	date that principal or interest payment is due. The notice must include the name of the 
22.6 	school district or intermediate school district, an identification of the debt obligation issue 
22.7 	in question, the date the payment is due, the amount of principal and interest due on the 
22.8 	payment date, the amount of principal or interest that the school district or intermediate 
22.9 	school district will be unable to repay on that date, the paying agent for the debt obligation, 
22.10 	the wire transfer instructions to transfer funds to that paying agent, and an indication as to 
22.11 	whether a payment is being requested by the school district or intermediate school district 
22.12 	under this section. If a paying agent becomes aware of a potential default, it shall inform 
22.13 	the commissioner of that fact. After receipt of a notice which requests a payment under 
22.14 	this section, after consultation with the school district or intermediate school district and 
22.15 	the paying agent, and after verification of the accuracy of the information provided, the 
22.16 	commissioner shall notify the commissioner of finance of the potential default. The notice 
22.17 	must include a final figure as to the amount due that the school district or intermediate 
22.18 	school district will be unable to repay on the date due.
22.19 	(b) Except as provided in subdivision 9, upon receipt of this notice from the 
22.20 	commissioner, the commissioner of finance shall issue a warrant and authorize the 
22.21 	commissioner of education to pay to the paying agent for the debt obligation the specified 
22.22 	amount on or before the date due. The amounts needed for the purposes of this subdivision 
22.23 	are annually appropriated to the department from the state general fund.
22.24 	(c) The Departments of Education and Finance must jointly develop detailed 
22.25 	procedures for school districts and intermediate school districts to notify the state that 
22.26 	they have obligated themselves to be bound by the provisions of this section, procedures 
22.27 	for school districts or intermediate school districts and paying agents to notify the state 
22.28 	of potential defaults and to request state payment under this section, and procedures 
22.29 	for the state to expedite payments to prevent defaults. The procedures are not subject 
22.30 	to chapter 14.
22.31 		Subd. 3.School district bound; interest rate on state paid amount. If, at the 
22.32 	request of a school district or intermediate school district, the state has paid part or all of 
22.33 	the principal or interest due on a district's debt obligation on a specific date, the school 
22.34 	district or intermediate school district is bound by all provisions of this section and the 
22.35 	amount paid shall bear taxable interest from the date paid until the date of repayment at 
22.36 	the invested cash rate as it is certified by the commissioner of finance. Interest shall only 
23.1 	accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4 
23.2 	and other payments received from the district.
23.3 		Subd. 4.Pledge of district's full faith and credit. If, at the request of a school 
23.4 	district or intermediate school district, the state has paid part or all of the principal or 
23.5 	interest due on a district's debt obligation on a specific date, the pledge of the full faith 
23.6 	and credit and unlimited taxing powers of the school district or the member districts of 
23.7 	the intermediate district to repay the principal and interest due on those debt obligations 
23.8 	shall also, without an election or the requirement of a further authorization, become a 
23.9 	pledge of the full faith and credit and unlimited taxing powers of the school district or 
23.10 	the member districts of the intermediate district to repay to the state the amount paid, 
23.11 	with interest. Amounts paid by the state must be repaid in the order in which the state 
23.12 	payments were made.
23.13 		Subd. 4a.Aid reduction for repayment. (a) Except as provided in this subdivision, 
23.14 	the state must reduce the state aid payable to the school district or intermediate school 
23.15 	district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273 
23.16 	by the amount paid by the state under this section on behalf of the district, plus the interest 
23.17 	due on it, and the amount reduced must revert from the appropriate account to the state 
23.18 	general fund. Payments from the school district endowment fund or any federal aid 
23.19 	payments shall not be reduced.
23.20 	(b) For an intermediate school district, the state aid payable to the intermediate 
23.21 	school district must first be reduced, before any reduction is made to the state aids payable 
23.22 	to the member districts. If the state aid payable to the intermediate school district is 
23.23 	not sufficient to repay the state, state aid payable to member districts may be reduced 
23.24 	proportionately based on the ratio of each member district's adjusted net tax capacity to 
23.25 	the total adjusted net tax capacity of all member districts.
23.26 	(c) If, after review of the financial situation of the school district or intermediate 
23.27 	school district, the commissioner advises the commissioner of finance that a total reduction 
23.28 	of aids would cause an undue hardship on or an undue disruption of the educational 
23.29 	program of the district, the commissioner, with the approval of the commissioner of 
23.30 	finance, may establish a different schedule for reduction of aids to repay the state. The 
23.31 	amount of aids to be reduced is decreased by any amounts repaid to the state by the district 
23.32 	from other revenue sources.
23.33 		Subd. 6.Tax levy for repayment. (a) With the approval of the commissioner, a 
23.34 	district may levy in the year the state makes a payment under this section an amount up to 
23.35 	the amount necessary to provide funds for the repayment of the amount paid by the state 
23.36 	plus interest through the date of estimated repayment by the district. The proceeds of this 
24.1 	levy may be used only for this purpose unless they are in excess of the amount actually 
24.2 	due, in which case the excess shall be used to repay other state payments made under this 
24.3 	section or shall be deposited in the debt redemption fund of the school district. This levy 
24.4 	shall be an increase in the levy limits of the district for purposes of section 275.065, 
24.5 	subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by 
24.6 	the amount levied. This levy by the district is not eligible for debt service equalization 
24.7 	under section 123B.53. 
24.8 	(b) If the state is not repaid in full for a payment made under this section by 
24.9 	November 30 of the calendar year following the year in which the state makes the 
24.10 	payment, the commissioner shall require the district to certify a property tax levy in an 
24.11 	amount up to the amount necessary to provide funds for repayment of the amount paid by 
24.12 	the state plus interest through the date of estimated repayment by the school district. To 
24.13 	prevent undue hardship, the commissioner may allow the district to certify the levy over a 
24.14 	five-year period. The proceeds of the levy may be used only for this purpose unless they 
24.15 	are in excess of the amount actually due, in which case the excess shall be used to repay 
24.16 	other state payments made under this section or shall be deposited in the debt redemption 
24.17 	fund of the district. This levy shall be an increase in the levy limits of the school district 
24.18 	for purposes of section 275.065, subdivision 6. If the commissioner orders the district 
24.19 	to levy, the amount of aids reduced to repay the state shall be decreased by the amount 
24.20 	levied. This levy by the district is not eligible for debt service equalization under section 
24.21 	123B.53 or any successor provision. A levy under this subdivision must be explained as a 
24.22 	specific increase at the meeting required under section 275.065, subdivision 6. 
24.23 	(c) For an intermediate district, a levy made by a member district under paragraph (a) 
24.24 	or (b) to pay its pro rata share must be spread by the commissioner as a tax rate based on 
24.25 	the total adjusted net tax capacity of the member school districts. The proceeds of the levy 
24.26 	must be remitted by the member school district to the intermediate school district and must 
24.27 	be used by the intermediate district only to repay the state amounts owed. Any amount in 
24.28 	excess of the amount owed to the state must be repaid to the member school districts and 
24.29 	the commissioner shall adjust each member district's property tax levy in the next year.
24.30 		Subd. 7.Election as to mandatory application. A school district or intermediate 
24.31 	school district may covenant and obligate itself, prior to the issuance of an issue of debt 
24.32 	obligations, to notify the commissioner of a potential default and to use the provisions of 
24.33 	this section to guarantee payment of the principal and interest on those debt obligations 
24.34 	when due. If the district obligates itself to be bound by this section, it must covenant in the 
24.35 	resolution that authorizes the issuance of the debt obligations to deposit with the paying 
24.36 	agent three business days prior to the date on which a payment is due an amount sufficient 
25.1 	to make that payment or to notify the commissioner under subdivision 1 that it will be 
25.2 	unable to make all or a portion of that payment. A district that has obligated itself must 
25.3 	include a provision in its agreement with the paying agent for that issue that requires 
25.4 	the paying agent to inform the commissioner if it becomes aware of a potential default 
25.5 	in the payment of principal or interest on that issue or if, on the day two business days 
25.6 	prior to the date a payment is due on that issue, there are insufficient funds to make the 
25.7 	payment on deposit with the paying agent. Funds invested in a refunding escrow account 
25.8 	established under section 475.67 that are to become available to the paying agent on a 
25.9 	principal or interest payment date are deemed to be on deposit with the paying agent three 
25.10 	business days before the payment date. If a district either covenants to be bound by this 
25.11 	section or accepts state payments under this section to prevent a default of a particular 
25.12 	issue of debt obligations, the provisions of this section shall be binding as to that issue 
25.13 	as long as any debt obligation of that issue remain outstanding. If the provisions of this 
25.14 	section are or become binding for more than one issue of debt obligations and a district is 
25.15 	unable to make payments on one or more of those issues, the district must continue to 
25.16 	make payments on the remaining issues. 
25.17 		Subd. 8.Mandatory plan; technical assistance. If the state makes payments on 
25.18 	behalf of a school district or intermediate school district under this section or the district 
25.19 	defaults in the payment of principal or interest on an outstanding debt obligation, it must 
25.20 	submit a plan to the commissioner for approval specifying the measures it intends to 
25.21 	implement to resolve the issues which led to its inability to make the payment and to 
25.22 	prevent further defaults. The department must provide technical assistance to the district 
25.23 	in preparing its plan. If the commissioner determines that a district's plan is not adequate, 
25.24 	the commissioner shall notify the district that the plan has been disapproved, the reasons 
25.25 	for the disapproval, and that the state shall not make future payments under this section for 
25.26 	debt obligations issued after the date specified in that notice until its plan is approved. The 
25.27 	commissioner may also notify the district that until its plan is approved, other aids due the 
25.28 	district will be withheld after a date specified in the notice.
25.29 		Subd. 9.State bond rating. If the commissioner of finance determines that the 
25.30 	credit rating of the state would be adversely affected thereby, the commissioner of finance 
25.31 	shall not issue warrants under subdivision 2 for the payment of principal or interest on any 
25.32 	debt obligations for which a district did not, prior to their issuance, obligate itself to be 
25.33 	bound by the provisions of this section.
25.34 		Subd. 10.Continuing disclosure agreements. The commissioner of finance 
25.35 	may enter into written agreements or contracts relating to the continuing disclosure of 
25.36 	information needed to facilitate the ability of school districts or intermediate school 
26.1 	districts to issue debt obligations according to federal securities laws, rules, and 
26.2 	regulations, including securities and exchange commission rules and regulations, section 
26.3 	240.15c2-12. Such agreements or contracts may be in any form the commissioner of 
26.4 	finance deems reasonable and in the state's best interests.

26.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.6 	Sec. 36. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
26.7 		Subd. 16.Payments to third parties. Notwithstanding subdivision 3, the current 
26.8 	year aid payment percentage of the amounts under section 123A.26, subdivision 3 and 
26.9 	section 124D.041, shall be paid in equal installments on August 30, December 30, and 
26.10 	March 30, with a final adjustment payment on October 30 of the next fiscal year of the 
26.11 	remaining amount.

26.12 	Sec. 37. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is 
26.13 	amended to read:
26.14 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
26.15 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
26.16 	any taxable year is changed after the taxes for that year have been spread by the county 
26.17 	auditor and the local tax rate as determined by the county auditor based upon the original 
26.18 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
26.19 	prior to February 1 of each year, certify to the commissioner of education the amount of 
26.20 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
26.21 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
26.22 	calculated according to the provisions of this subdivision. This amount shall be deducted 
26.23 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
26.24 	adjustment must be the product of:
26.25 	(1) the net revenue loss as certified by the county auditor, times
26.26 	(2) the ratio of:
26.27 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
26.28 	according to the following:
26.29 	(A) section 123B.57, if the district received health and safety aid according to that 
26.30 	section for the second preceding year;
26.31 	(B) section 124D.20, if the district received aid for community education programs 
26.32 	according to that section for the second preceding year;
26.33 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
26.34 	education aid according to section 124D.135 for the second preceding year; 
27.1 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
27.2 	aid according to that section for the second preceding year; 
27.3 	(E) section 126C.13, if the district received general education aid according to 
27.4 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
27.5 	preceding year;
27.6 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
27.7 	according to section 126C.10, subdivision 13b, in the second preceding year;
27.8 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
27.9 	to section 126C.10, subdivision 30, in the second preceding year;
27.10 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
27.11 	according to section 126C.10, subdivision 33, in the second preceding year;
27.12 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
27.13 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
27.14 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
27.15 	according to section 124D.22, subdivision 4, in the second preceding year;
27.16 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
27.17 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
27.18 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
27.19 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
27.20 	(a), in the second preceding year; to
27.21 	(ii) the total amount of the district's certified levy in the third preceding December, 
27.22 	plus or minus auditor's adjustments.

27.23 	Sec. 38. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is 
27.24 	amended to read:
27.25 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
27.26 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
27.27 	decertification of a tax increment district, the school district's aid and levy limitations 
27.28 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
27.29 	provisions of this subdivision.
27.30 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
27.31 	equal to the product of:
27.32 	(1) the amount of the payment of excess tax increment to the district, times
27.33 	(2) the ratio of:
27.34 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
27.35 	the excess tax increment is paid according to the following:
28.1 	(A) section 123B.57, if the district received health and safety aid according to that 
28.2 	section for the second preceding year;
28.3 	(B) section 124D.20, if the district received aid for community education programs 
28.4 	according to that section for the second preceding year;
28.5 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
28.6 	education aid according to section 124D.135 for the second preceding year; 
28.7 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
28.8 	aid according to that section for the second preceding year; 
28.9 	(E) section 126C.13, if the district received general education aid according to 
28.10 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
28.11 	preceding year;
28.12 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
28.13 	according to section 126C.10, subdivision 13b, in the second preceding year;
28.14 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
28.15 	to section 126C.10, subdivision 30, in the second preceding year;
28.16 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
28.17 	according to section 126C.10, subdivision 33, in the second preceding year;
28.18 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
28.19 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
28.20 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
28.21 	according to section 124D.22, subdivision 4, in the second preceding year;
28.22 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
28.23 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
28.24 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
28.25 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
28.26 	(a), in the second preceding year; to
28.27 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
28.28 	auditor's adjustments.
28.29 	(c) An amount must be subtracted from the school district's levy limitation for the 
28.30 	next levy certified equal to the difference between:
28.31 	(1) the amount of the distribution of excess increment; and
28.32 	(2) the amount subtracted from aid pursuant to clause (a).
28.33 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
28.34 	for the fiscal year specified or to the levy specified, the reductions must be made from 
28.35 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
29.1 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
29.2 	this subdivision.
29.3 	(d) This subdivision applies only to the total amount of excess increments received 
29.4 	by a district for a calendar year that exceeds $25,000.

29.5 	Sec. 39. Laws 2007, chapter 146, article 2, section 46, subdivision 11, is amended to 
29.6 	read:
29.7 		Subd. 11. Statewide testing and reporting system. For the statewide testing and 
29.8 	reporting system under Minnesota Statutes, section 120B.30: 

29.9		$ 
	15,150,000
	..... 
	2008 
	
29.10
29.11		$ 
	15,150,000
12,900,000
	..... 
	2009 
	
29.12 	Any testing contracts awarded by the commissioner using appropriations in this 
29.13 	subdivision must include as part of that testing contract a method to vertically link testing 
29.14 	questions across grade levels for the purposes of working towards a statewide growth 
29.15 	model. 
29.16 	Up to $1,150,000 each year is for the value-added index assessment model. 
29.17 	Any balance in the first year does not cancel but is available in the second year. 
29.18 	The base for fiscal year 2010 and later is $13,000,000.

29.19 	Sec. 40. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to 
29.20 	read:
29.21 		Subd. 13. Preadvanced placement, advanced placement, international 
29.22 	baccalaureate, and concurrent enrollment programs. For preadvanced placement, 
29.23 	advanced placement, international baccalaureate, and concurrent enrollment programs 
29.24 	under Minnesota Statutes, sections 120B.132 and 124D.091: 

29.25		$ 
	6,500,000
	..... 
	2008 
	
29.26		$ 
	6,500,000
	..... 
	2009 
	
29.27 	Of this amount, $2,500,000 each year is for concurrent enrollment program aid 
29.28 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
29.29 	commissioner must proportionately reduce the aid payment to each district. Any balance 
29.30 	in the first year does not cancel but is available in the second year.
29.31 	The base appropriation for fiscal year 2010 and later is $2,000,000.

29.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.1 	Sec. 41. Laws 2007, chapter 146, article 2, section 46, subdivision 14, is amended to 
30.2 	read:
30.3 		Subd. 14. Collaborative urban educator. For the collaborative urban educator 
30.4 	grants under Minnesota Statutes, section 122A.641 program: 

30.5		$ 
	528,000
	..... 
	2008 
	
30.6		$ 
	528,000
	..... 
	2009 
	
30.7 	$210,000 each year is for the Southeast Asian teacher program at Concordia 
30.8 	University, St. Paul; $159,000 each year is for the collaborative urban educator program at 
30.9 	the University of St. Thomas; and $159,000 each year is for the Center for Excellence in 
30.10 	Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 
30.11 	nonurban school districts. 
30.12 	Any balance in the first year does not cancel but is available in the second year. 

30.13 	Sec. 42. Laws 2007, chapter 146, article 2, section 46, subdivision 19, is amended to 
30.14 	read:
30.15 		Subd. 19. Educational Planning and Assessment System (EPAS) program. For 
30.16 	the Educational Planning and Assessment System (EPAS) program under Minnesota 
30.17 	Statutes, section 120B.128: 

30.18		$ 
	829,000600,000
	..... 
	2008 
	
30.19		$ 
	829,000400,000
	..... 
	2009 
	
30.20 	Any balance in the first year does not cancel but is available in the second year. 
30.21 	This is a onetime appropriation.

30.22 	Sec. 43. Laws 2007, chapter 146, article 2, section 46, subdivision 20, is amended to 
30.23 	read:
30.24 		Subd. 20. College-level examination program (CLEP). For the college-level 
30.25 	examination program (CLEP) under Minnesota Statutes, section 120B.131: 

30.26
30.27		$ 
	1,650,000
850,000
	..... 
	2008 
	
30.28
30.29		$ 
	1,650,000
500,000
	..... 
	2009 
	
30.30 	Any balance in the first year does not cancel but is available in the second year. 
30.31 	This is a onetime appropriation.

30.32 	Sec. 44. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to 
30.33 	read:
31.1 		Subd. 2. Report. (a) The task force must submit to the education policy and finance 
31.2 	committees of the legislature by February 15, 2008 2009, a report that identifies and 
31.3 	clearly and concisely explains each provision in state law or rule that exceeds or expands 
31.4 	upon a minimum federal requirement contained in law or regulation for providing special 
31.5 	education programs and services to eligible students. The report also must recommend 
31.6 	which state provisions statutes and rules that exceed or expand upon a minimum federal 
31.7 	requirement may be amended to conform with minimum federal requirements or made 
31.8 	more effective as determined by a majority of the task force members. The task force must 
31.9 	recommend rules governing the use of aversive and deprivation procedures by school 
31.10 	district employees or persons under contract with a school district. The task force expires 
31.11 	when it submits its report to the legislature. 
31.12 	(b) Consistent with subdivision 1, the Department of Education member of the 
31.13 	task force representing regulators shall be replaced with a parent advocate selected by a 
31.14 	statewide organization that advocates on behalf of families with children with disabilities.
31.15 	(c) The Department of Education must provide technical assistance at the request of 
31.16 	the task force.

31.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.18 	Sec. 45. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to 
31.19 	read:
31.20 		Subd. 9. Special Education Task Force. For the task force to compare federal 
31.21 	and state special education requirements: 

31.22		$ 
	20,000 40,000
	..... 
	2008 
	
31.23 	Any balance in the first year does not cancel but is available in the second year.
31.24 	This is a onetime appropriation.

31.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.26 	Sec. 46. Laws 2007, chapter 146, article 5, section 11, subdivision 1, is amended to 
31.27 	read:
31.28 		Subdivision 1. Fiscal year 2007 replacement aid.  Independent School District No. 
31.29 	2899, Plainview-Elgin-Millville, is eligible for replacement aidrevenue to offset its excess 
31.30 	fund balance penalty for fiscal year 2007. The aid adjustment must be made under Laws 
31.31 	2007, chapter 146, article 5, section 13, subdivision 5. The levy adjustment of $6,600 
31.32 	must be included as part of the district's property taxes for taxes payable in 2009.

32.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.2 	Sec. 47. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to 
32.3 	read:
32.4 		Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school 
32.5 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
32.6 	124D.118: 

32.7
32.8		$ 
	5,460,000
5,583,000
	..... 
	2008 
	
32.932.10
		$ 
	5,695,000
6,396,000
	..... 
	2009 

32.11 	Sec. 48. Laws 2007, chapter 146, article 7, section 4, is amended to read:
32.12 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 32.13 		Subdivision 1. Department of Education. Unless otherwise indicated, the sums 
32.14 	indicated in this section are appropriated from the general fund to the Department of 
32.15 	Education for the fiscal years designated. 
32.16 		Subd. 2. Department. (a) For the Department of Education: 

32.17		$ 
	22,169,000
	..... 
	2008 
	
32.18
32.19		$ 
	22,653,000
 21,999,000
	..... 
	2009 
	
32.20 	Any balance in the first year does not cancel but is available in the second year. 
32.21 	(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking. 
32.22 	(c) $7,000 in fiscal year 2008 is for rulemaking under section 3. 
32.23 	(d) $40,000 each year is for an early hearing loss intervention coordinator under 
32.24 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
32.25 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
32.26 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
32.27 	employing a world languages coordinator. 
32.28 	(e) $260,000 each year is for the Minnesota Children's Museum. 
32.29 	(f) $41,000 each year is for the Minnesota Academy of Science. 
32.30 	(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 
32.31 	of Teaching. 
32.32 	(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 
32.33 	of School Administrators. 
32.34 	(i) $50,000 each year is for the Duluth Children's Museum. 
33.1 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
33.2 	document and its supplements are approved and appropriated and shall be spent as 
33.3 	indicated. 
33.4 	(k) None of the amounts appropriated under this subdivision may be used for 
33.5 	Minnesota's Washington, D.C., office.
33.6 	(1) $50,000 in fiscal year 2009 is for an advisory task force for determining how 
33.7 	the educational achievement of low-income students and students of color is impacted by 
33.8 	education issues related to rigorous preparation and coursework, educators' professional 
33.9 	development, English language learners, special education, GRAD tests, and the use of 
33.10 	valid and reliable data on student preparation for postsecondary academic and career 
33.11 	opportunities. This amount is not added to the base appropriation for fiscal year 2010 and 
33.12 	later. The department shall not expend any funds unless a match of an equal amount of 
33.13 	nonstate funds has been received for this purpose.
33.14 	(m) $188,000 in fiscal year 2009 is for the administration of the school performance 
33.15 	report card.
33.16 	(n) The base for fiscal year 2010 and later is $21,761,000.

33.17 	Sec. 49. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to 
33.18 	read:
33.19 		Subd. 4. Health and developmental screening aid. For health and developmental 
33.20 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19: 

33.21
33.22		$ 
	3,159,000
2,624,000
	..... 
	2008 
	
33.23
33.24		$ 
	3,330,000
3,592,000
	..... 
	2009 
	
33.25 	The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
33.26 	for 2008. 
33.27 	The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
33.28 	$3,333,000 for 2009. 

33.29 	Sec. 50. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
33.30 	1, is amended to read:

33.31	Subdivision 1. Total Appropriation
 			$ 
	584,000 148,000
	
33.32 	The appropriations in this section are from 
33.33 	the general fund. The amounts that may be 
34.1 	spent for each purpose are specified in the 
34.2 	following subdivisions. 

34.3 	Sec. 51. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
34.4 	2, is amended to read:

34.5
34.6	Subd. 2. Independent School District No. 239, 
Rushford-Peterson

34.7	(a) Flood Enrollment Impact Aid
 				89,000 
	
34.8 	The commissioner of education shall pay to 
34.9 	the school district flood enrollment impact 
34.10 	aid equal to $5,394 times the number of 
34.11 	pupils lost as a result of the floods of August 
34.12 	2007. The district must provide to the 
34.13 	commissioner of education documentation 
34.14 	of the number of pupils in average daily 
34.15 	membership lost as a result of the flood. 

34.16	(b) Disaster Relief Facilities Grant
 				250,000
	
34.17 	For facilities cleanup, repair, and replacement 
34.18 	costs related to the floods of August 2007 not 
34.19 	covered by the district's insurance settlement 
34.20 	or through Federal Emergency Management 
34.21 	Agency payments. The commissioner of 
34.22 	education may request the school district 
34.23 	to provide necessary information before 
34.24 	awarding a grant. 

34.25	(c)Pupil Transportation Aid
 				40,000 
	
34.26 	For increased costs associated with 
34.27 	transporting students as a result of the floods 
34.28 	of August 2007. 

34.29 	Sec. 52. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
34.30 	6, is amended to read:

34.31
34.32	Subd. 6. Disaster Relief Facilities Grants to 
Other Districts
 				90,00014,000
	
35.1 	For facilities cleanup, repair, and replacement 
35.2 	costs related to the floods of August 2007 not 
35.3 	covered by the district's insurance settlement 
35.4 	or through Federal Emergency Management 
35.5 	Agency payments. The commissioner of 
35.6 	education may request the school district 
35.7 	to provide necessary information before 
35.8 	awarding a grant. School districts not 
35.9 	included in subdivisions 2 to 5 must be given 
35.10 	priority in the allocation of this appropriation.

35.11 	Sec. 53. FUND TRANSFERS.
 35.12 		Subdivision 1.Capital account transfers. Notwithstanding any law to the contrary, 
35.13 	on June 30, 2008, a school district may transfer money from its reserved for operating 
35.14 	capital account to its undesignated balance in the general fund. The amount transferred 
35.15 	by any school district must not exceed $51 times the district's adjusted marginal cost 
35.16 	pupil units for fiscal year 2007. This transfer may occur only after the school board has 
35.17 	adopted a written resolution stating the amount of the transfer and declaring that the 
35.18 	school district's operating capital needs are being met.
35.19 		Subd. 2.Balaton school district. Notwithstanding Minnesota Statutes, section 
35.20 	123B.79 or 123B.80, or subdivision 1, on June 30, 2008, Independent School District No. 
35.21 	411, Balaton, may transfer up to $70,000 from its reserved for operating capital account 
35.22 	to its undesignated general fund balance.
35.23 		Subd. 3.East Central school district. Notwithstanding Minnesota Statutes, section 
35.24 	123B.79 or 123B.80, or subdivision 1, on June 30, 2008, Independent School District No. 
35.25 	2580, East Central, may transfer up to $300,000 from its reserved for operating capital 
35.26 	account to its undesignated general fund balance.
35.27 		Subd. 4.Hills-Beaver Creek school district. (a) Notwithstanding Minnesota 
35.28 	Statutes, section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 
35.29 	671, Hills-Beaver Creek, may transfer up to $260,000 from its reserved for disabled 
35.30 	accessibility account to its undesignated general fund balance without making a levy 
35.31 	reduction.
35.32 	(b) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 
35.33 	30, 2008, Independent School District No. 671, Hills-Beaver Creek, may transfer up to 
35.34 	$100,000 from its reserved for operating capital account to its undesignated general fund 
35.35 	balance without making a levy reduction.
36.1 		Subd. 5.Rocori school district. Notwithstanding Minnesota Statutes, section 
36.2 	123B.79 or 123B.80, on June 30, 2008, Independent School District No. 750, Rocori, 
36.3 	may transfer up to $82,000 from its reserved for disabled accessibility account to its 
36.4 	undesignated general fund balance without making a levy reduction.

36.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.6 	Sec. 54. ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL 
36.7 	YEAR 2009 ONLY.
 36.8 	A school district's general education revenue under Minnesota Statutes, section 
36.9 	126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the 
36.10 	district's adjusted marginal cost pupil units for that year.

36.11 	Sec. 55. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL 
36.12 	DISTRICTS AND CHARTER SCHOOLS, FISCAL YEARS 2009 TO 2010.
 36.13 	Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 
36.14 	122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education 
36.15 	must limit the participation in the alternative teacher pay program to those district sites 
36.16 	and charter schools that received alternative compensation revenue in fiscal year 2008 
36.17 	or those district sites and charter schools that have submitted an application, under 
36.18 	Minnesota Statutes, section 122A.414, by March 20, 2008, for fiscal year 2009 alternative 
36.19 	compensation participation. This limitation applies for fiscal years 2009 and 2010.

36.20 	Sec. 56. VIRGINIA SCHOOL DISTRICT; EMERGENCY REPAIRS.
 36.21 	Independent School District No 701, Virginia may levy up to $100,000 for 
36.22 	emergency facilities repairs. This authority is in addition to any other levy authority 
36.23 	granted to the district. The levy proceeds received under this section must be recognized 
36.24 	in fiscal year 2009.

36.25 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 only.

36.26 	Sec. 57. EQUALIZING FACTORS.
 36.27 	The commissioner shall adjust each referendum market value equalizing factor 
36.28 	established under Minnesota Statutes, chapter 126C, by dividing the equalizing factor by 
36.29 	the ratio of the statewide referendum market value as calculated using the class rates 
36.30 	in effect for assessment year 2007 to the statewide referendum market value using the 
36.31 	class rates for that assessment year. 

37.1 	Sec. 58. APPROPRIATIONS.
 37.2 		Subdivision 1.Department of Education. The sums indicated in this section are 
37.3 	appropriated from the general fund, unless otherwise indicated, to the Department of 
37.4 	Education for the fiscal years designated.
37.5 		Subd. 2.Additional general education revenue. For additional general education 
37.6 	aid:

37.7		$
	16,547,000
	.....
	2009
	
37.8 	This appropriation is in addition to any other appropriation for this purpose.
37.9 	This 2009 appropriation includes $0 for 2008 and $16,547,000 for 2009.
37.10 		Subd. 3.Independent School District No. 239, Rushford-Peterson. For school 
37.11 	district flood enrollment impact aid as a result of the floods of August 2007.

37.12		$
	158,000
	.....
	2009
	
37.13 	The base appropriation for fiscal year 2010 is $158,000. The base appropriation for 
37.14 	later years is zero.
37.15 	The district must provide to the commissioner of education documentation of 
37.16 	the additional pupil transportation costs and the number of pupils in average daily 
37.17 	membership lost as a result of the flood.
37.18 	Up to $40,000 is for increased costs associated with transporting students as a result 
37.19 	of the floods of August 2007.
37.20 		Subd. 4.Lancaster. For a grant to Independent School District No. 356, Lancaster, 
37.21 	to replace the loss of sparsity revenue:

37.22		$
	100,000
	.....
	2009
	
37.23 	The base appropriation for fiscal years 2010 and 2011 is $100,000 per year. The 
37.24 	base appropriation for later fiscal years is zero.
37.25 		Subd. 5.Principal's Leadership Institute. For a grant to the Principal's Leadership 
37.26 	Institute under Minnesota Statutes, section 122A.74:

37.27		$
	275,000
	.....
	2009
	
37.28 	This is a onetime appropriation.
37.29 		Subd. 6.Board of Teaching; licensure by portfolio. For the Board of Teaching 
37.30 	for licensure by portfolio:

37.31		$
	17,000
	.....
	2009
	
38.1 	This appropriation is from the educator licensure portfolio account of the special 
38.2 	revenue fund.
38.3 		Subd. 7.Minnesota Humanities Commission. For a grant to the Minnesota 
38.4 	Humanities Commission.

38.5		$
	275,000
	.....
	2009
	
38.6 	This is a onetime appropriation.

38.7 	Sec. 59.  REPEALER.
 38.8 	(a) Minnesota Statutes 2006, section 126C.10, subdivisions 35 and 36, are repealed 
38.9 	for revenue for fiscal year 2010 and later.
38.10 	(b) Minnesota Statutes 2006, section 126C.21, subdivision 1, is repealed for revenue 
38.11 	for fiscal year 2010 and later.
38.12 	(c) Minnesota Statutes 2006, section 127A.45, subdivision 7a, is repealed.
38.13 	(d) Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, is 
38.14 	repealed for revenue for fiscal year 2010 and later.
38.15 	(e) Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3, 
38.16 	and 4, are repealed.

38.17 	ARTICLE 2
38.18 	EDUCATION FORECAST ADJUSTMENTS

38.19 	Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to 
38.20 	read:
38.21 		Subd. 2. General education aid. For general education aid under Minnesota 
38.22 	Statutes, section 126C.13, subdivision 4:

38.23
38.24		$ 
	5,618,342,000
5,600,647,000
	..... 
	2008 
	
38.25
38.26		$ 
	5,618,342,000
5,649,098,000
	..... 
	2009 
	
38.27 	The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and 
38.28 	$5,073,250,000 $5,064,396,000 for 2008.
38.29 	The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and 
38.30 	$5,072,028,000$5,105,346,000 for 2009.

38.31 	Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:
38.32 		Subd. 3. Referendum tax base replacement aid. For referendum tax base 
38.33 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

39.1		$ 
	870,000861,000
	..... 
	2008 
	
39.2 	The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

39.3 	Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
39.4 		Subd. 4. Enrollment options transportation. For transportation of pupils attending 
39.5 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
39.6 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

39.7		$ 
	95,00048,000
	..... 
	2008 
	
39.8		$ 
	97,00050,000
	..... 
	2009 

39.9 	Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
39.10 		Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section 
39.11 	127A.49:

39.12
39.13		$ 
	1,343,000
1,333,000
	..... 
	2008 
	
39.14
39.15		$ 
	1,347,000
1,629,000
	..... 
	2009 
	
39.16 	The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
39.17 	for 2008.
39.18 	The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
39.19 	$1,490,000 for 2009.

39.20 	Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
39.21 		Subd. 6. Consolidation transition. For districts consolidating under Minnesota 
39.22 	Statutes, section 123A.485:

39.23		$ 
	565,000240,000
	..... 
	2008 
	
39.24		$ 
	212,000339,000
	..... 
	2009 
	
39.25 	The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
39.26 	The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
39.27 	for 2009.

39.28 	Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
39.29 		Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under 
39.30 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

40.1
40.2		$ 
	16,290,000
15,601,000
	..... 
	2008 
	
40.3
40.4		$ 
	16,620,000
16,608,000
	..... 
	2009 
	
40.5 	The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
40.6 	$14,387,000 for 2008.
40.7 	The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
40.8 	$15,010,000 for 2009.

40.9 	Sec. 7. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
40.10 		Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid 
40.11 	under Minnesota Statutes, section 123B.92, subdivision 9:

40.12
40.13		$ 
	21,551,000
20,755,000
	..... 
	2008 
	
40.14
40.15		$ 
	21,392,000
21,007,000
	..... 
	2009 
	
40.16 	The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
40.17 	for 2008.
40.18 	The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
40.19 	$18,937,000 for 2009.
40.20 	B. EDUCATION EXCELLENCE

40.21 	Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
40.22 		Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 
40.23 	Statutes, section 124D.11, subdivision 4: 

40.24
40.25		$ 
	31,875,000
32,817,000
	..... 
	2008 
	
40.26
40.27		$ 
	36,193,000
37,527,000
	..... 
	2009 
	
40.28 	The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
40.29 	for 2008. 
40.30 	The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
40.31 	$34,194,000 for 2009. 

40.32 	Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
40.33 		Subd. 3. Charter school startup cost aid. For charter school startup cost aid 
40.34 	under Minnesota Statutes, section 124D.11: 

41.1
41.2		$ 
	1,896,000
1,801,000
	..... 
	2008 
	
41.3
41.4		$ 
	2,161,000
1,987,000
	..... 
	2009 
	
41.5 	The 2008 appropriation includes $241,000$239,000 for 2007 and $1,655,000
41.6 	$1,562,000 for 2008. 
41.7 	The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
41.8 	$1,814,000 for 2009. 

41.9 	Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to 
41.10 	read:
41.11 		Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section 
41.12 	124D.86, subdivision 5: 

41.13
41.14		$ 
	61,769,000
59,036,000
	..... 
	2008 
	
41.15
41.16		$ 
	61,000,000
62,448,000
	..... 
	2009 
	
41.17 	The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
41.18 	for 2008. 
41.19 	The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
41.20 	$56,536,000 for 2009. 

41.21 	Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to 
41.22 	read:
41.23 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
41.24 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
41.25 	section 124D.87: 

41.26
41.27		$ 
	9,639,000
9,901,000
	..... 
	2008 
	
41.28
41.29		$ 
	11,567,000
11,881,000
	..... 
	2009 

41.30 	Sec. 12. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to 
41.31 	read:
41.32 		Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota 
41.33 	Statutes, section 124D.83: 

42.1
42.2		$ 
	2,238,000
2,207,000
	..... 
	2008 
	
42.3
42.4		$ 
	2,422,000
2,392,000
	..... 
	2009 
	
42.5 	The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
42.6 	for 2008. 
42.7 	The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
42.8 	$2,170,000 for 2009. 
42.9 	C. SPECIAL PROGRAMS

42.10 	Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to 
42.11 	read:
42.12 		Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 
42.13 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
42.14 	within the district boundaries for whom no district of residence can be determined: 

42.15
42.16		$ 
	1,538,000
2,086,000
	..... 
	2008 
	
42.17
42.18		$ 
	1,729,000
2,282,000
	..... 
	2009 
	
42.19 	If the appropriation for either year is insufficient, the appropriation for the other 
42.20 	year is available. 

42.21 	Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to 
42.22 	read:
42.23 		Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 
42.24 	services under Minnesota Statutes, section 125A.75, subdivision 1: 

42.25		$ 
	254,000207,000
	..... 
	2008 
	
42.26		$ 
	284,000227,000
	..... 
	2009 
	
42.27 	The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008. 
42.28 	The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
42.29 	for 2009. 
42.30 	D. FACILITIES AND TECHNOLOGY

42.31 	Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to 
42.32 	read:
43.1 		Subd. 2. Health and safety revenue. For health and safety aid according to 
43.2 	Minnesota Statutes, section 123B.57, subdivision 5: 

43.3		$ 
	190,000254,000
	..... 
	2008 
	
43.4		$ 
	179,000103,000
	..... 
	2009 
	
43.5 	The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008. 
43.6 	The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
43.7 	for 2009. 

43.8 	Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to 
43.9 	read:
43.10 		Subd. 3. Debt service equalization. For debt service aid according to Minnesota 
43.11 	Statutes, section 123B.53, subdivision 6: 

43.12
43.13		$ 
	14,813,000
14,814,000
	..... 
	2008 
	
43.14
43.15		$ 
	11,124,000
9,109,000
	..... 
	2009 
	
43.16 	The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
43.17 	$13,048,000 for 2008. 
43.18 	The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
43.19 	$7,660,000 for 2009. 

43.20 	Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to 
43.21 	read:
43.22 		Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 
43.23 	Minnesota Statutes, section 123B.591, subdivision 4: 

43.24
43.25		$ 
	3,290,000
3,232,000
	..... 
	2008 
	
43.26
43.27		$ 
	2,667,000
2,627,000
	..... 
	2009 
	
43.28 	The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008. 
43.29 	The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
43.30 	$2,268,000 for 2009. 

43.31 	Sec. 18. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to 
43.32 	read:
43.33 		Subd. 8. School technology and operating capital aid grants. For school 
43.34 	technology and operating capital grants under section 11: 

44.1
44.2		$ 
	38,145,000
38,236,000
	..... 
	2008 
	
44.3
44.4		$ 
	52,676,000
52,454,000
	..... 
	2009 
	
44.5 	This is a onetime appropriation. 
44.6 	E. NUTRITION AND ACCOUNTING

44.7 	Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to 
44.8 	read:
44.9 		Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 
44.10 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17: 

44.11
44.12		$ 
	12,022,000
12,094,000
	..... 
	2008 
	
44.13
44.14		$ 
	12,166,000
12,394,000
	..... 
	2009 

44.15 	Sec. 20. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to 
44.16 	read:
44.17 		Subd. 4. Summer food service replacement aid. For summer food service 
44.18 	replacement aid under Minnesota Statutes, section 124D.119: 

44.19		$ 
	150,000127,000
	..... 
	2008 
	
44.20		$ 
	150,000
	..... 
	2009 
	
44.21 	F. EARLY CHILDHOOD AND ADULT PROGRAMS

44.22 	Sec. 21. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to 
44.23 	read:
44.24 		Subd. 2. Early childhood family education aid. For early childhood family 
44.25 	education aid under Minnesota Statutes, section 124D.135: 

44.26
44.27		$ 
	21,106,000
21,092,000
	..... 
	2008 
	
44.28
44.29		$ 
	29,601,000
29,324,000
	..... 
	2009 
	
44.30 	The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
44.31 	for 2008. 
44.32 	The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
44.33 	$27,180,000 for 2009. 

45.1 	Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to 
45.2 	read:
45.3 		Subd. 3. School readiness. For revenue for school readiness programs under 
45.4 	Minnesota Statutes, sections 124D.15 and 124D.16: 

45.5
45.6		$ 
	9,995,000
9,987,000
	..... 
	2008 
	
45.7		$ 
	10,095,000
	..... 
	2009 
	
45.8 	The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for 
45.9 	2008. 
45.10 	The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009. 

45.11 	Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to 
45.12 	read:
45.13 		Subd. 8. Community education aid. For community education aid under 
45.14 	Minnesota Statutes, section 124D.20: 

45.15
45.16		$ 
	1,307,000
1,299,000
	..... 
	2008 
	
45.17		$ 
	816,000796,000
	..... 
	2009 
	
45.18 	The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
45.19 	for 2008. 
45.20 	The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
45.21 	$674,000 for 2009. 

45.22 	Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to 
45.23 	read:
45.24 		Subd. 9. Adults with disabilities program aid. For adults with disabilities 
45.25 	programs under Minnesota Statutes, section 124D.56: 

45.26		$ 
	710,000709,000
	..... 
	2008 
	
45.27		$ 
	710,000
	..... 
	2009 
	
45.28 	The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008. 
45.29 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. 
45.30 	School districts operating existing adults with disabilities programs that are not fully 
45.31 	funded shall receive full funding for the program beginning in fiscal year 2008 before the 
45.32 	commissioner awards grants to other districts. 

45.33 	Sec. 25. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to 
45.34 	read:
46.1 		Subd. 13. Adult basic education aid. For adult basic education aid under 
46.2 	Minnesota Statutes, section 124D.531: 

46.3
46.4		$ 
	40,347,000
40,344,000
	..... 
	2008 
	
46.5
46.6		$ 
	41,745,000
41,712,000
	..... 
	2009 
	
46.7 	The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
46.8 	for 2008. 
46.9 	The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
46.10 	for 2009.