HF 142

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education finance; modifying and reducing 
  1.3             appropriations for certain education programs; 
  1.4             amending Minnesota Statutes 2002, sections 124D.135, 
  1.5             subdivision 8; 124D.16, subdivision 6; 124D.20, by 
  1.6             adding subdivisions; 124D.52, subdivision 1; 124D.531, 
  1.7             subdivisions 1, 5. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9   Section 1.  [EDUCATION APPROPRIATIONS AND REDUCTIONS.] 
  1.10     The dollar amounts in the columns under "APPROPRIATION 
  1.11  CHANGE" are added to or, if shown in parentheses, are subtracted 
  1.12  from the appropriations in Laws 2001, First Special Session 
  1.13  chapter 3 or 6, as amended, by Laws 2002, chapter 220 or 374, as 
  1.14  amended, or other law to the specified agencies.  The 
  1.15  appropriations are from the general fund or other named fund and 
  1.16  are available for the fiscal years indicated for each purpose.  
  1.17  The figure "2003" means that the addition to or subtraction from 
  1.18  the appropriations listed under the figure is for the fiscal 
  1.19  year ending June 30, 2003. 
  1.20                                                         2003 
  1.21  APPROPRIATION REDUCTIONS                          $  (7,500,000)
  1.22                                             APPROPRIATION CHANGE
  1.23  Sec. 2.  APPROPRIATIONS; DEPARTMENT OF
  1.24  CHILDREN, FAMILIES, AND LEARNING 
  1.25  Subdivision 1.  Department Operating Budget          (1,044,000) 
  1.26  The sums in this subdivision are 
  1.27  subtracted from the general fund 
  1.28  appropriations to the department of 
  2.1   children, families, and learning for 
  2.2   operating purposes.  
  2.3   Subd. 2. Department Aid and Grants                    (223,000) 
  2.4   The sums in this subdivision are 
  2.5   subtracted from the general fund 
  2.6   appropriation to the department of 
  2.7   children, families, and learning for 
  2.8   aids and grants. 
  2.9   Subd. 3.  School Readiness                            (791,000) 
  2.10  Subd. 4.  Early Childhood  
  2.11  Family Education                                      (769,000)
  2.12  Subd. 5.  Community Education                       (1,807,000) 
  2.13  Subd. 6.  Adult Basic Education Aid                 (1,622,000) 
  2.14  Subd. 7.  State Revenue for American Indian 
  2.15  Tribal Contract or Grant Schools                      (500,000)
  2.16  If the appropriation for this program 
  2.17  is insufficient, state aid must be 
  2.18  proportionately reduced. 
  2.19  Subd. 8.  Best Practice Grants                        (363,000) 
  2.20  Subd. 9.  Magnet School Start-Up Grants                (50,000) 
  2.21  If the appropriation for this program 
  2.22  is insufficient, state aid must be 
  2.23  proportionately reduced.  
  2.24  Sec. 3.  APPROPRIATIONS; PERPICH CENTER 
  2.25  FOR ARTS EDUCATION                                    (331,000)
  2.26     Sec. 4.  Minnesota Statutes 2002, section 124D.135, 
  2.27  subdivision 8, is amended to read: 
  2.28     Subd. 8.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  2.29  the average balance, during the most recent three-year period in 
  2.30  a district's early childhood family education reserve account on 
  2.31  June 30 of each year, adjusted for any prior reductions under 
  2.32  this subdivision, must not be greater than 25 percent of the sum 
  2.33  of the district's maximum early childhood family education 
  2.34  annual revenue under subdivision 1, excluding adjustments under 
  2.35  this subdivision, plus any fees, grants, or other revenue 
  2.36  received by the district for early childhood family education 
  2.37  programs for the prior year. 
  2.38     (b) If a district's adjusted average early childhood family 
  2.39  education reserve over the three-year period is in excess of 25 
  2.40  percent of the prior year annual revenue the limit under 
  2.41  paragraph (a), the district's early childhood family education 
  2.42  state aid and levy authority for the current school year must be 
  3.1   reduced by the lesser of the current year revenue under 
  3.2   subdivision 1 or the excess reserve amount.  The aid reduction 
  3.3   equals the product of the lesser of the excess reserve amount or 
  3.4   the current year revenue under subdivision 1 times the ratio of 
  3.5   the district's aid for the prior current year under subdivision 
  3.6   4 to the district's revenue for the prior current year under 
  3.7   subdivision 1.  The levy reduction equals the excess reserve 
  3.8   amount minus the aid reduction.  The commissioner must 
  3.9   reallocate aid and levy reduced under this subdivision to other 
  3.10  eligible early childhood family education programs in proportion 
  3.11  to each district's revenue for the prior year under subdivision 
  3.12  1.  For purposes of this paragraph, if a district does not levy 
  3.13  the entire amount permitted under subdivision 3, the revenue 
  3.14  under subdivision 1 must be reduced in proportion to the actual 
  3.15  amount levied.  
  3.16     (b) (c) Notwithstanding paragraph (a), for fiscal year 
  3.17  2003, the excess reserve amount shall be computed using the 
  3.18  balance in a district's early childhood family education reserve 
  3.19  account on June 30, 2002.  For fiscal year 2004, the excess 
  3.20  reserve amount shall be computed using the adjusted average 
  3.21  balance in a district's early childhood family education reserve 
  3.22  account on June 30, 2002, and June 30, 2003. 
  3.23     [EFFECTIVE DATE.] This section is effective for revenue for 
  3.24  fiscal year 2003. 
  3.25     Sec. 5.  Minnesota Statutes 2002, section 124D.16, 
  3.26  subdivision 6, is amended to read: 
  3.27     Subd. 6.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  3.28  the average balance, during the most recent three-year period, 
  3.29  in a district's school readiness reserve account on June 30 of 
  3.30  each year, adjusted for any prior reductions under this 
  3.31  subdivision, must not be greater than 25 percent of the 
  3.32  district's school readiness annual revenue for the prior year, 
  3.33  excluding adjustments under this subdivision.  
  3.34     (b) If a district's adjusted average school readiness 
  3.35  reserve over the three-year period is in excess of 25 percent of 
  3.36  the prior year annual revenue the limit under paragraph (a), the 
  4.1   district's current year school readiness state aid must be 
  4.2   reduced by the lesser of the excess reserve amount or the 
  4.3   current year aid.  The commissioner must reallocate aid reduced 
  4.4   under this subdivision to other eligible school readiness 
  4.5   programs in proportion to each district's aid for the prior year 
  4.6   under subdivision 2.  
  4.7      (b) (c) Notwithstanding paragraph (a), for fiscal year 
  4.8   2003, the excess reserve amount shall be computed using the 
  4.9   balance in a district's school readiness reserve account on June 
  4.10  30, 2002.  For fiscal year 2004, the excess reserve amount shall 
  4.11  be computed using the adjusted average balance in a district's 
  4.12  school readiness reserve account on June 30, 2002, and June 30, 
  4.13  2003. 
  4.14     [EFFECTIVE DATE.] This section is effective for revenue for 
  4.15  fiscal year 2003. 
  4.16     Sec. 6.  Minnesota Statutes 2002, section 124D.20, is 
  4.17  amended by adding a subdivision to read: 
  4.18     Subd. 11.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  4.19  the sum of the average balances during the most recent 
  4.20  three-year period in a district's community education reserve 
  4.21  account and unreserved/undesignated community service fund 
  4.22  account on June 30 of each year, adjusted for any prior 
  4.23  reductions under this subdivision, must not be greater than 25 
  4.24  percent of the sum of the district's maximum total community 
  4.25  education revenue under subdivision 1, excluding adjustments 
  4.26  under this subdivision, plus the district's additional community 
  4.27  education levy under section 124D.21, plus any fees, grants, or 
  4.28  other revenue received by the district for community education 
  4.29  programs for the prior year.  For purposes of this paragraph, 
  4.30  "community education programs" means programs according to 
  4.31  subdivisions 8, paragraph (a), and 9, and section 124D.19, 
  4.32  subdivision 12, excluding early childhood family education 
  4.33  programs under section 124D.13, school readiness programs under 
  4.34  sections 124D.15 and 124D.17, and adult basic education programs 
  4.35  under section 124D.52. 
  4.36     (b) If the sum of the average balances during the most 
  5.1   recent three-year period in a district's community education 
  5.2   reserve account and unreserved/undesignated community service 
  5.3   fund account on June 30 of each year, adjusted for any prior 
  5.4   reductions under this subdivision, is in excess of the limit 
  5.5   under paragraph (a), the district's community education state 
  5.6   aid and levy authority for the current school year must be 
  5.7   reduced by the lesser of the current year revenue under 
  5.8   subdivision 1 or the excess reserve amount.  The aid reduction 
  5.9   equals the product of the lesser of the excess reserve amount or 
  5.10  the current year revenue under subdivision 1 times the ratio of 
  5.11  the district's aid for the current year under subdivision 7 to 
  5.12  the district's revenue for the current year under subdivision 
  5.13  1.  The levy reduction equals the excess reserve amount minus 
  5.14  the aid reduction.  For purposes of this paragraph, if a 
  5.15  district does not levy the entire amount permitted under 
  5.16  subdivision 5 or 6, the revenue under subdivision 1 must be 
  5.17  reduced in proportion to the actual amount levied. 
  5.18     (c) Notwithstanding paragraph (a), for fiscal year 2003, 
  5.19  the excess reserve amount shall be computed using the balances 
  5.20  in a district's community education reserve account and 
  5.21  unreserved/undesignated community service fund account on June 
  5.22  30, 2002.  For fiscal year 2004, the excess reserve amount shall 
  5.23  be computed using the adjusted average balances in a district's 
  5.24  community education reserve account and unreserved/undesignated 
  5.25  community service fund account on June 30, 2002, and June 30, 
  5.26  2003. 
  5.27     [EFFECTIVE DATE.] This section is effective for revenue for 
  5.28  fiscal year 2003. 
  5.29     Sec. 7.  Minnesota Statutes 2002, section 124D.20, is 
  5.30  amended by adding a subdivision to read: 
  5.31     Subd. 12.  [WAIVER.] (a) If a district anticipates that the 
  5.32  reserve account may exceed the 25 percent limit established 
  5.33  under subdivision 11 because of extenuating circumstances, prior 
  5.34  approval to exceed the limit must be obtained in writing from 
  5.35  the commissioner. 
  5.36     (b) Notwithstanding paragraph (a), for fiscal year 2003, a 
  6.1   district may submit a waiver request within 30 days of the date 
  6.2   of final enactment. 
  6.3      Sec. 8.  Minnesota Statutes 2002, section 124D.52, 
  6.4   subdivision 1, is amended to read: 
  6.5      Subdivision 1.  [PROGRAM REQUIREMENTS.] (a) An adult basic 
  6.6   education program is a day or evening program offered by a 
  6.7   district that is for people over 16 years of age who do not 
  6.8   attend an elementary or secondary school.  The program offers 
  6.9   academic instruction necessary to earn a high school diploma or 
  6.10  equivalency certificate.  Tuition and fees may not be charged to 
  6.11  a learner for instruction paid under this section, except for 
  6.12     (b) Notwithstanding any law to the contrary, a school board 
  6.13  or the governing body of a consortium offering an adult basic 
  6.14  education program may adopt a sliding fee schedule based on a 
  6.15  family's income, but must waive the fee for participants who are 
  6.16  under the age of 21 or unable to pay.  The fees charged must be 
  6.17  designed to enable individuals of all socioeconomic levels to 
  6.18  participate in the program.  A program may charge a security 
  6.19  deposit to assure return of materials, supplies, and equipment. 
  6.20     (c) Each approved adult basic education program must 
  6.21  develop a memorandum of understanding with the local workforce 
  6.22  development centers located in the approved program's service 
  6.23  delivery area.  The memorandum of understanding must describe 
  6.24  how the adult basic education program and the workforce 
  6.25  development centers will cooperate and coordinate services to 
  6.26  provide unduplicated, efficient, and effective services to 
  6.27  clients.  
  6.28     (d) Adult basic education aid must be spent for adult basic 
  6.29  education purposes as specified in sections 124D.518 to 124D.531.
  6.30     Sec. 9.  Minnesota Statutes 2002, section 124D.531, 
  6.31  subdivision 1, is amended to read: 
  6.32     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
  6.33  (a) The state total adult basic education aid for fiscal year 
  6.34  2001 2002 equals $30,157,000 $32,570,000.  The state total adult 
  6.35  basic education aid for later years equals: 
  6.36     (1) the state total adult basic education aid for the 
  7.1   preceding fiscal year; times 
  7.2      (2) the lesser of: 
  7.3      (i) 1.08 1.02, or 
  7.4      (ii) the greater of 1.00 or the ratio of the state total 
  7.5   contact hours in the first prior program year to the state total 
  7.6   contact hours in the second prior program year.  
  7.7      (b) Beginning in fiscal year 2002, two percent of the state 
  7.8   total adult basic education aid must be set aside for adult 
  7.9   basic education supplemental service grants under section 
  7.10  124D.522.  
  7.11     (b) (c) The state total adult basic education aid, 
  7.12  excluding basic population aid, equals the difference between 
  7.13  the amount computed in paragraph (a), and the state total basic 
  7.14  population aid under subdivision 2. 
  7.15     [EFFECTIVE DATE.] This section is effective the day 
  7.16  following final enactment and applies to revenue for fiscal year 
  7.17  2003 and later.  
  7.18     Sec. 10.  Minnesota Statutes 2002, section 124D.531, 
  7.19  subdivision 5, is amended to read: 
  7.20     Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivisions 
  7.21  1, 2, 3, and 4, for fiscal year 2001, any years 2004 and 2005 
  7.22  only, adult basic education aid for an adult basic education 
  7.23  program qualifying for aid under this section, that receives 
  7.24  less state aid than in fiscal year 2000 must receive additional 
  7.25  aid equal to the difference between its fiscal year 2000 aid and 
  7.26  its fiscal year 2001 aid must equal at least its aid amount for 
  7.27  fiscal year 2003. 
  7.28     Sec. 11.  [LEVY REDUCTION; DISTRICTS IN STATUTORY OPERATING 
  7.29  DEBT.] 
  7.30     For fiscal years 2003 and 2004 only, a school district that 
  7.31  is in statutory operating debt as defined in Minnesota Statutes, 
  7.32  section 123B.81, as of June 30 of the previous year is not 
  7.33  subject to a levy reduction under Minnesota Statutes, section 
  7.34  124D.20, subdivision 11. 
  7.35     Sec. 12.  [EFFECTIVE DATE.] 
  7.36     Sections 1 to 11 are effective the day following final 
  8.1   enactment unless otherwise specified.