1.1 	A bill for an act
1.2 	relating to education finance; extending funding opportunities for contract 
1.3 	alternative schools; appropriating money;amending Minnesota Statutes 2006, 
1.4 	section 124D.69, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 124D.69, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.Aid. (a) If a pupil enrolls in an alternative program, eligible under 
1.9 	section 124D.68, subdivision 3, paragraph (d), or subdivision 4, operated by a private 
1.10 	organization that has contracted with a school district to provide educational services for 
1.11 	eligible pupils under section 124D.68, subdivision 2, the district contracting with the 
1.12 	private organization must reimburse the provider an amount equal to the sum of (1) at 
1.13 	least 95 percent of the district's average general education less basic skills revenue per 
1.14 	pupil unit times the number of pupil units for pupils attending the program, and (2) the 
1.15 	amount of basic skills revenue generated by pupils attending the program according to 
1.16 	section 126C.10, subdivision 4. For a pupil attending the program part time, the revenue 
1.17 	paid to the program, excluding compensatory revenue, must be reduced proportionately, 
1.18 	according to the amount of time the pupil attends the program, and revenue paid to the 
1.19 	district shall be reduced accordingly. Pupils for whom a district provides reimbursement 
1.20 	may not be counted by the district for any purpose other than computation of general 
1.21 	education revenue. If payment is made to a district or program for a pupil under this 
1.22 	section, the department must not make a payment for the same pupil under section 
1.23 	124D.68, subdivision 9. Notwithstanding sections 125A.15, 125A.51, and 125A.515, 
2.1 	general education revenue for a student who receives educational services under this 
2.2 	section shall be paid according to this section.
2.3 	(b) A pupil enrolled in an alternative program under this section qualifies for 
2.4 	referendum equalization aid equal to the state average amount of referendum revenue per 
2.5 	pupil unit for that year. 
2.6 	(c) A pupil enrolled in an alternative program under this section qualifies for 
2.7 	building lease aid according to section 124D.11, subdivision 4. 
2.8 	(d) The department must pay the aids earned under paragraphs (b) and (c) directly to 
2.9 	the alternative program.

2.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

2.11 	Sec. 2. APPROPRIATIONS.
 2.12 	$....... in fiscal year 2008 and $....... in fiscal year 2009 are appropriated from 
2.13 	the general fund to the commissioner of education for payment of contract alternative 
2.14 	referendum aid and contract alternative lease aid under Minnesota Statutes, section 
2.15 	124D.69, subdivision 1.