1.1 	A bill for an act
1.2 	relating to education finance; modifying the allowed uses of student support 
1.3 	personnel aid for school districts and charter schools with declining enrollment;
1.4 	amending Minnesota Statutes 2024, section 124D.901, subdivision 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2024, section 124D.901, subdivision 4, is amended to read:
1.7 		Subd. 4.Allowed uses. (a) Aid under this section must be used to hire new positions 
1.8 	for student support services personnel or increase a current position that is less than 1.0 
1.9 	full-time equivalent to a greater number of service hours or make permanent a position hired 
1.10 	using onetime resources awarded through the federal Coronavirus Aid Relief and Economic 
1.11 	Security Act, the federal Consolidated Appropriations Act, the federal Division 
1.12 	M-Coronavirus Response and Relief Supplemental Appropriations Act, or the federal 
1.13 	American Rescue Plan Act, or to maintain a position that would otherwise be eliminated.
1.14 	(b) Cooperative student support personnel aid must be transferred to the intermediate 
1.15 	district or other cooperative unit of which the district is a member and used to hire new 
1.16 	positions for student support services personnel or increase a current position that is less 
1.17 	than 1.0 full-time equivalent to a greater number of service hours or make permanent a 
1.18 	position hired using onetime resources awarded through the American Rescue Plan Act at 
1.19 	the intermediate district or cooperative unit.
1.20 	(c) If a school district, charter school, or cooperative unit does not receive at least two 
1.21 	applications and is not able to hire a new full-time equivalent position with student support 
1.22 	personnel aid, the aid may be used for contracted services from individuals licensed to serve 
2.1 	as a school counselor, school psychologist, school social worker, school nurse, or chemical 
2.2 	dependency counselor in Minnesota.
2.3 	(d) Notwithstanding paragraphs (a) and (c), a declining enrollment district may use aid 
2.4 	under this section to maintain existing student support services personnel positions or 
2.5 	contracted services, including positions or contracted services established prior to the 
2.6 	2023-2024 school year. For purposes of this paragraph, "declining enrollment district" 
2.7 	means a school district or charter school for which the enrollment on October 1 of the 
2.8 	previous fiscal year is less than the enrollment on October 1 of the second previous fiscal 
2.9 	year. A school district or charter school that qualifies as a declining enrollment district under 
2.10 	this paragraph remains eligible to allocate aid as provided under this paragraph for each of 
2.11 	the next four fiscal years.

2.12 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2026 and later.