1.1 	A bill for an act
1.2 	relating to education; repurposing compensatory and sparsity revenue as special 
1.3 	education, limited English proficiency, and basic revenue;amending Minnesota 
1.4 	Statutes 2008, sections 124D.65, subdivision 5; 125A.76, subdivision 5; 126C.05, 
1.5 	subdivision 17; 126C.10, subdivisions 2, 4; 126C.17, subdivision 5; repealing 
1.6 	Minnesota Statutes 2008, sections 126C.10, subdivisions 3, 7, 8; 126C.15.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to 
1.9 	read:
1.10 		Subd. 5.School district LEP revenue. (a) A district's limited English proficiency 
1.11 	programs revenue equals the product of (1) $700 in fiscal year 2004 $1,500 in fiscal 
1.12 	year 2010 and later times (2) the greater of 20 or the adjusted marginal cost average 
1.13 	daily membership of eligible pupils of limited English proficiency enrolled in the district 
1.14 	during the current fiscal year.
1.15 	(b) A pupil ceases to generate state limited English proficiency aid in the school 
1.16 	year following the school year in which the pupil attains the state cutoff score on a 
1.17 	commissioner-provided assessment that measures the pupil's emerging academic English.

1.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
1.19 	and later.

1.20 	Sec. 2. Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:
1.21 		Subd. 5.School district special education aid. A school district's special education 
1.22 	aid for fiscal year 2008 and later equals the state total special education aid times the ratio 
1.23 	of the district's its initial special education aid to the state total initial special education aid.

2.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
2.2 	and later.

2.3 	Sec. 3. Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read:
2.4 		Subd. 17.LEP pupil units. (a) Limited English proficiency pupil units for fiscal 
2.5 	year 2004 and thereafter shall be determined according to this subdivision.
2.6 	(b) The limited English proficiency concentration percentage for a district equals the 
2.7 	product of 100 times the ratio of:
2.8 	(1) means the number of eligible pupils of limited English proficiency in average 
2.9 	daily membership enrolled in the district during the current fiscal year; to.
2.10 	(2) the number of pupils in average daily membership enrolled in the district.
2.11 	(c) The limited English proficiency pupil units for each eligible pupil of limited 
2.12 	English proficiency in average daily membership equals the lesser of one or the quotient 
2.13 	obtained by dividing the limited English proficiency concentration percentage for the 
2.14 	pupil's district of enrollment by 11.5.
2.15 	(d) (b) Limited English proficiency pupil units shall be counted by the district of 
2.16 	enrollment.
2.17 	(e) (c) Notwithstanding paragraph (d) (b), for the purposes of this subdivision, 
2.18 	pupils enrolled in a cooperative or intermediate school district shall be counted by the 
2.19 	district of residence.
2.20 	(f) (d) For the purposes of this subdivision, the terms defined in section 124D.59
2.21 	have the same meaning. 

2.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
2.23 	and later.

2.24 	Sec. 4. Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read:
2.25 		Subd. 2.Basic revenue. The basic revenue for each district equals the formula 
2.26 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
2.27 	allowance for fiscal year 2007 is $4,974. The formula allowance for fiscal year 2008 is 
2.28 	$5,074 and the formula allowance for fiscal year 2009 and subsequent years is $5,124.
2.29 	The formula allowance for fiscal year 2010 and subsequent years is $5,332.

2.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
2.31 	and later.

2.32 	Sec. 5. Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read:
3.1 		Subd. 4.Basic skills revenue. A school district's basic skills revenue equals the 
3.2 	sum of:
3.3 	(1) compensatory revenue under subdivision 3; plus
3.4 	(2) limited English proficiency revenue under section 124D.65, subdivision 5; plus
3.5 	(3) $250 times the limited English proficiency pupil units under section 126C.05, 
3.6 	subdivision 17. 

3.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
3.8 	and later.

3.9 	Sec. 6. Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:
3.10 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later, 
3.11 	a district's referendum equalization revenue equals the sum of the first tier referendum 
3.12 	equalization revenue and the second tier referendum equalization revenue.
3.13 	(b) A district's first tier referendum equalization revenue equals the district's first 
3.14 	tier referendum equalization allowance times the district's resident marginal cost pupil 
3.15 	units for that year.
3.16 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
3.17 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
3.18 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
3.19 	of the district's referendum allowance under subdivision 1 or $600.
3.20 	For fiscal year 2008 and later, a district's first tier referendum equalization allowance 
3.21 	equals the lesser of the district's referendum allowance under subdivision 1 or $700.
3.22 	(d) A district's second tier referendum equalization revenue equals the district's 
3.23 	second tier referendum equalization allowance times the district's resident marginal cost 
3.24 	pupil units for that year.
3.25 	(e) For fiscal year 2006, a district's second tier referendum equalization allowance 
3.26 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
3.27 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
3.28 	For fiscal year 2007 and later, a district's second tier referendum equalization allowance 
3.29 	equals the lesser of the district's referendum allowance under subdivision 1 or 26 percent 
3.30 	of the formula allowance, minus the district's first tier referendum equalization allowance.
3.31 	(f) Notwithstanding paragraph (e), the second tier referendum allowance for a 
3.32 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
3.33 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
3.34 	referendum allowance under subdivision 1 minus the district's first tier referendum 
3.35 	equalization allowance.

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

4.2 	Sec. 7.  REPEALER.
 4.3 	Minnesota Statutes 2008, sections 126C.10, subdivisions 3, 7, and 8; and 126C.15,
4.4 	are repealed.

4.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
4.6 	and later.