HF 148

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; increasing the basic
formula allowance; restoring funding for special
education programs; restoring funding for LEP
programs; restoring funding for early education
programs; restoring funding for after-school programs;
restoring funding for adult basic education programs;
restoring certain levy authority; appropriating money;
amending Minnesota Statutes 2004, sections 124D.11,
subdivision 4; 124D.135, subdivision 1; 124D.20,
subdivision 3; 124D.531, subdivisions 1, 2, 4;
124D.59, subdivision 2; 125A.76, subdivisions 1, 4;
125A.79, subdivisions 1, 6; 126C.05, subdivisions 8,
15; 126C.10, subdivisions 2, 2a, 3; 126C.40,
subdivision 1; 126C.43, subdivisions 2, 3; 126C.44;
proposing coding for new law in Minnesota Statutes,
chapter 124D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 124D.11,
subdivision 4, is amended to read:

Subd. 4.

Building lease aid.

When a charter school finds
it economically advantageous to rent or lease a building or land
for any instructional purposes and it determines that the total
operating capital revenue under section 126C.10, subdivision 13,
is insufficient for this purpose, it may apply to the
commissioner for building lease aid for this purpose. The
commissioner must review and either approve or deny a lease aid
application using the following criteria:

(1) the reasonableness of the price based on current market
values;

(2) the extent to which the lease conforms to applicable
state laws and rules; and

(3) the appropriateness of the proposed lease in the
context of the space needs and financial circumstances of the
charter school.

A charter school must not use the building lease aid it receives
for custodial, maintenance service, utility, or other operating
costs. The amount of building lease aid per pupil unit served
for a charter school for any year shall not exceed the lesser of
(a) 90 percent of the approved cost or (b) the product of the
pupil units served for the current school year times deleted text begin the greater
of the charter school's building lease aid per pupil unit served
for fiscal year 2003, excluding the adjustment under Laws 2002,
chapter 392, article 6, section 4, or $1,200 deleted text end new text begin $1,500 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 124D.135,
subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood
family education programs for a school district equals deleted text begin $120 for
fiscal years 2003 and 2004 and $96 deleted text end new text begin $136 new text end for fiscal year deleted text begin 2005
deleted text end new text begin 2006 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing
in the district on October 1 of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 3.

new text begin [124D.1711] WAY TO GROW/SCHOOL READINESS
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Administration. new text end

new text begin The commissioner of
education shall administer the way to grow/school readiness
program, in collaboration with the commissioners of health and
human services, to promote intellectual, social, emotional, and
physical development and school readiness of children prebirth
to age six by coordinating and improving access to
community-based and neighborhood-based services that support and
assist all parents in meeting the health and developmental needs
of their children at the earliest possible age.
new text end

new text begin Subd. 2. new text end

new text begin Program components. new text end

new text begin (a) A way to grow/school
readiness program must:
new text end

new text begin (1) collaborate and coordinate delivery of services with
other community organizations and agencies serving children
prebirth to age six and their families;
new text end

new text begin (2) target services to families with children prebirth to
age six with services increasing based on need;
new text end

new text begin (3) build on existing services and coordinate a continuum
of prebirth to age six essential services, including but not
limited to prenatal health services, parent education and
support, and preschool programs;
new text end

new text begin (4) provide strategic outreach efforts to families using
trained paraprofessionals such as home visitors; and
new text end

new text begin (5) support of neighborhood oriented and culturally
specific social support, information, outreach, and other
programs to promote healthy development of children and to help
parents obtain the information, resources, and parenting skills
needed to nurture and care for their children.
new text end

new text begin (b) A way to grow/school readiness program may include:
new text end

new text begin (1) a program of home visitors to contact pregnant women
early in their pregnancies, encourage them to obtain prenatal
care, and provide social support, information, and referrals
regarding prenatal care and well-baby care to reduce infant
mortality, low birth weight, and childhood injury, disease, and
disability;
new text end

new text begin (2) a program of home visitors to provide social support,
information, and referrals regarding parenting skills and to
encourage families to participate in parenting skills programs
and other family supportive services;
new text end

new text begin (3) support of neighborhood-based or community-based
parent-child and family resource centers or interdisciplinary
resource teams to offer supportive services to families with
preschool children;
new text end

new text begin (4) staff training, technical assistance, and incentives
for collaboration designed to raise the quality of community
services relating to prenatal care, child development, health,
and school readiness;
new text end

new text begin (5) programs to raise general public awareness about
practices that promote healthy child development and school
readiness;
new text end

new text begin (6) programs to expand public and private collaboration to
promote the development of a coordinated and culturally specific
system of services available to all families;
new text end

new text begin (7) support of periodic screening and evaluation services
for preschool children to ensure adequate developmental
progress;
new text end

new text begin (8) support of health, educational, and other developmental
services needed by families with preschool children;
new text end

new text begin (9) support of family prevention and intervention programs
needed to address risks of child abuse or neglect;
new text end

new text begin (10) development or support of a jurisdiction-wide
coordinating agency to develop and oversee programs to enhance
child health, development, and school readiness with special
emphasis on neighborhoods with a high proportion of children in
need; and
new text end

new text begin (11) other programs or services to improve the health,
development, and school readiness of children in target
neighborhoods and communities.
new text end

new text begin Subd. 3. new text end

new text begin Eligible grantees. new text end

new text begin An application for a grant
may be submitted by any of the following entities:
new text end

new text begin (1) a city, town, county, school district, or other local
unit of government;
new text end

new text begin (2) two or more governmental units organized under a joint
powers agreement;
new text end

new text begin (3) a community action agency that satisfies the
requirements of section 119A.375, subdivision 1; or
new text end

new text begin (4) a nonprofit organization, or consortium of nonprofit
organizations, that demonstrates collaborative effort with at
least one unit of local government.
new text end

new text begin Subd. 4. new text end

new text begin Distribution. new text end

new text begin The commissioner shall give
priority to funding existing programs.
new text end

new text begin To the extent possible, the commissioner shall award grants
to applicants with experience or demonstrated ability in
providing comprehensive, multidisciplinary, community-based
programs with objectives similar to those listed in subdivision
2, or in providing other human services or social services
programs using a multidisciplinary, community-based approach.
new text end

new text begin Subd. 5. new text end

new text begin Applications. new text end

new text begin Each grant application must
propose a five-year program designed to accomplish the purposes
of this section. The application must be submitted on forms
provided by the commissioner. The grant application must
include:
new text end

new text begin (1) a description of the specific neighborhoods that will
be served under the program and the name, address, and a
description of each community agency or agencies with which the
applicant intends to contract to provide services using grant
money;
new text end

new text begin (2) a letter of intent from each community agency
identified in clause (1) that indicates the agency's willingness
to participate in the program and approval of the proposed
program structure and components;
new text end

new text begin (3) a detailed description of the structure and components
of the proposed program and an explanation of how each component
will contribute to accomplishing the purposes of this section;
new text end

new text begin (4) a description of how public and private resources,
including schools, health care facilities, government agencies,
neighborhood organizations, and other resources, will be
coordinated and made accessible to families in target
neighborhoods, including letters of intent from public and
private agencies indicating their willingness to cooperate with
the program;
new text end

new text begin (5) a detailed, proposed budget that demonstrates the
ability of the program to accomplish the purposes of this
section using grant money and other available resources,
including funding sources other than a grant; and
new text end

new text begin (6) a comprehensive evaluation plan for measuring the
success of the program in meeting the objectives of the overall
grant program and the individual grant project, including an
assessment of the impact of the program in terms of at least
three of the following criteria:
new text end

new text begin (i) utilization rates of community services;
new text end

new text begin (ii) availability of support systems for families;
new text end

new text begin (iii) birth weights of newborn babies;
new text end

new text begin (iv) child accident rates;
new text end

new text begin (v) utilization rates of prenatal care;
new text end

new text begin (vi) reported rates of child abuse;
new text end

new text begin (vii) rates of health screening and evaluation; and
new text end

new text begin (viii) school readiness of way to grow participants
compared to nonparticipants.
new text end

new text begin Subd. 6. new text end

new text begin Match. new text end

new text begin Each dollar of state money must be
matched with 50 cents of nonstate money. Programs may match
state money with in-kind contributions, including volunteer
assistance.
new text end

new text begin Subd. 7. new text end

new text begin Advisory committee. new text end

new text begin Each grantee must establish
a program advisory board of 12 or more members to advise the
grantee on program design, operation, and evaluation. The board
must include representatives of local units of government and
representatives of the project area who reflect the geographic,
cultural, racial, and ethnic diversity of that community.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 4.

Minnesota Statutes 2004, section 124D.20,
subdivision 3, is amended to read:

Subd. 3.

General community education revenue.

The
general community education revenue for a district equals $5.95
for fiscal deleted text begin year deleted text end new text begin years new text end 2003 and 2004 deleted text begin and deleted text end new text begin , new text end $5.23 for fiscal year
2005 new text begin , new text end and new text begin $5.95 for fiscal year 2006 and new text end later, times the
greater of 1,335 or the population of the district. The
population of the district is determined according to section
275.14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 5.

new text begin [124D.2211] AFTER-SCHOOL ENRICHMENT PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A competitive statewide
after-school enrichment grant program that incorporates
principles, strategies, and approaches consistent with a
positive youth development orientation is established to provide
implementation grants to community or nonprofit organizations,
to political subdivisions, or to school-based programs. The
commissioner may use criteria for after-school enrichment
programs under Minnesota Statutes 2002, section 124D.221, to
evaluate grant proposals.
new text end

new text begin Subd. 2. new text end

new text begin Priority neighborhoods. new text end

new text begin For grants in
Minneapolis and St. Paul, the commissioner must give priority to
neighborhoods in this subdivision. In Minneapolis, priority
neighborhoods are Near North, Hawthorne, Sumner-Glenwood,
Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland,
McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and
Phillips. In St. Paul, priority neighborhoods are
Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons
Bluff, and the West Side.
new text end

new text begin Subd. 3. new text end

new text begin Program outcomes. new text end

new text begin The expected outcomes of the
after-school enrichment programs are to:
new text end

new text begin (1) increase the number of children participating in
adult-supervised programs in nonschool hours;
new text end

new text begin (2) support academic achievement, including the areas of
reading and math;
new text end

new text begin (3) reduce the amount of juvenile crime;
new text end

new text begin (4) increase school attendance and reduce the number of
school suspensions;
new text end

new text begin (5) increase the number of youth engaged in community
service and other activities designed to support character
improvement, strengthen families, and instill community values;
new text end

new text begin (6) increase skills in technology, the arts, sports, and
other activities; and
new text end

new text begin (7) increase and support the academic achievement and
character development of adolescent parents.
new text end

new text begin Subd. 4. new text end

new text begin Plan. new text end

new text begin An applicant shall develop a plan for an
after-school enrichment program for youth. The plan must
include:
new text end

new text begin (1) collaboration with and leverage of existing community
resources that have demonstrated effectiveness;
new text end

new text begin (2) solid grounding in an evidence-based conceptual
framework, such as resilience or developmental assets, that
represents a more efficacious approach to program design and
implementation;
new text end

new text begin (3) creative outreach to children and youth;
new text end

new text begin (4) involvement of local governments, including park and
recreation boards or schools, unless no government agency is
appropriate;
new text end

new text begin (5) community control over the design of the enrichment
program; and
new text end

new text begin (6) identification of the sources of nonpublic funding.
new text end

new text begin Subd. 5. new text end

new text begin Plan approval; grants. new text end

new text begin An applicant shall
submit a plan developed under subdivision 4 to the commissioner
for approval. The commissioner shall award a grant for the
implementation of an approved plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 6.

Minnesota Statutes 2004, section 124D.531,
subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic education aid for fiscal year
2004 equals $34,388,000. The state total adult basic education
aid for fiscal year 2005 and later is $36,509,000. new text begin The state
total adult basic education aid for later years equals the state
total adult basic education aid for the preceding year times the
lesser of:
new text end

new text begin (1) 1.08; or
new text end

new text begin (2) the greater of 1.00 or the ratio of the state total
contact hours in the first prior program year to the state total
contact hours in the second prior program year.
new text end

new text begin (b) new text end Beginning in fiscal year 2002, two percent of the state
total adult basic education aid must be set aside for adult
basic education supplemental service grants under section
124D.522.

deleted text begin (b) deleted text end new text begin (c) new text end The state total adult basic education aid,
excluding basic population aid, equals the difference between
the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 7.

Minnesota Statutes 2004, section 124D.531,
subdivision 2, is amended to read:

Subd. 2.

Basic population aid.

A district is eligible
for basic population aid if the district has a basic service
level approved by the commissioner under section 124D.52,
subdivision 5, or is a member of a consortium with an approved
basic service level. Basic population aid is equal to the
greater of deleted text begin $3,844 deleted text end new text begin $4,000 new text end or deleted text begin $1.73 deleted text end new text begin $1.80 new text end times the population of
the district. District population is determined according to
section 275.14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 8.

Minnesota Statutes 2004, section 124D.531,
subdivision 4, is amended to read:

Subd. 4.

Adult basic education program aid limit.

(a)
Notwithstanding subdivisions 2 and 3, the total adult basic
education aid for a program per prior year contact hour must not
exceed $21 per prior year contact hour computed under
subdivision 3, clause (2).

(b) For fiscal year 2004, the aid for a program under
subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the aid for that program under
subdivision 3, clause (2), for fiscal year 2003 by more than the
greater of eight percent or $10,000.

(c) For fiscal year 2005, the aid for a program under
subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the sum of the aid for that program
under subdivision 3, clause (2), and Laws 2003, First Special
Session chapter 9, article 9, section 8, paragraph (a), for the
preceding fiscal year by more than the greater of eight percent
or $10,000.

(d) For fiscal year 2006 and later, the aid for a program
under subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the aid for that program under
subdivision 3, clause (2), for the first preceding fiscal year
by more than the greater of deleted text begin eight deleted text end new text begin 17 new text end percent or deleted text begin $10,000 deleted text end new text begin $20,000 new text end .

(e) Adult basic education aid is payable to a program for
unreimbursed costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 9.

Minnesota Statutes 2004, section 124D.59,
subdivision 2, is amended to read:

Subd. 2.

Pupil of limited english proficiency.

(a)
"Pupil of limited English proficiency" means a pupil in
kindergarten through grade 12 who meets the following
requirements:

(1) the pupil, as declared by a parent or guardian first
learned a language other than English, comes from a home where
the language usually spoken is other than English, or usually
speaks a language other than English; and

(2) the pupil is determined by developmentally appropriate
measures, which might include observations, teacher judgment,
parent recommendations, or developmentally appropriate
assessment instruments, to lack the necessary English skills to
participate fully in classes taught in English.

(b) Notwithstanding paragraph (a), a pupil in grades 4
through 12 who was enrolled in a Minnesota public school on the
dates during the previous school year when a commissioner
provided assessment that measures the pupil's emerging academic
English was administered, shall not be counted as a pupil of
limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17,
and shall not generate state limited English proficiency aid
under section 124D.65, subdivision 5, unless the pupil scored
below the state cutoff score on an assessment measuring emerging
academic English provided by the commissioner during the
previous school year.

(c) Notwithstanding paragraphs (a) and (b), a pupil in
kindergarten through grade 12 shall not be counted as a pupil of
limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17,
and shall not generate state limited English proficiency aid
under section 124D.65, subdivision 5, if deleted text begin :
deleted text end

deleted text begin (1) deleted text end the pupil is not enrolled during the current fiscal
year in an educational program for pupils of limited English
proficiency in accordance with sections 124D.58 to 124D.64 deleted text begin ; or
deleted text end

deleted text begin (2) the pupil has generated five or more years of average
daily membership in Minnesota public schools since July 1, 1996 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005,
for revenue for fiscal year 2006.
new text end

Sec. 10.

Minnesota Statutes 2004, section 125A.76,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this
section, the definitions in this subdivision apply.

(a) "Base year" for fiscal year 1998 and later fiscal years
means the second fiscal year preceding the fiscal year for which
aid will be paid.

(b) "Basic revenue" has the meaning given it in section
126C.10, subdivision 2. For the purposes of computing basic
revenue pursuant to this section, each child with a disability
shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural
liaisons, related services, and support services staff providing
direct services to students. Essential personnel may also
include special education paraprofessionals or clericals
providing support to teachers and students by preparing
paperwork and making arrangements related to special education
compliance requirements, including parent meetings and
individual education plans.

(d) "Average daily membership" has the meaning given it in
section 126C.05.

(e) "Program growth factor" means 1.046 for fiscal year
2003, deleted text begin and deleted text end 1.0 for fiscal deleted text begin year deleted text end new text begin years new text end 2004 new text begin and 2005, and 1.046 for
fiscal year 2007 new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 11.

Minnesota Statutes 2004, section 125A.76,
subdivision 4, is amended to read:

Subd. 4.

State total special education aid.

The state
total special education aid for fiscal year 2004 equals
$530,642,000. The state total special education aid for fiscal
year 2005 equals $529,164,000. new text begin The state total special
education aid for fiscal year 2006 equals $578,967,000. new text end The
state total special education aid for later fiscal years equals:

(1) the state total special education aid for the preceding
fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total deleted text begin average daily membership
deleted text end new text begin unduplicated count of students with an individual education plan
new text end for the current fiscal year to the state total deleted text begin average daily
membership deleted text end new text begin unduplicated count of students with an individual
education plan new text end for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 12.

Minnesota Statutes 2004, section 125A.79,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this
section, the definitions in this subdivision apply.

(a) "Unreimbursed special education cost" means the sum of
the following:

(1) expenditures for teachers' salaries, contracted
services, supplies, equipment, and transportation services
eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections
125A.03 to 125A.24 and 125A.65 for services eligible for revenue
under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services,
supplies, and equipment under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76,
subdivision 2.

(b) "General revenue" means for fiscal year 1996, the sum
of the general education revenue according to section 126C.10,
subdivision 1, as adjusted according to section 127A.47,
subdivision 7, plus the total referendum revenue according to
section 126C.17, subdivision 4. For fiscal years 1997 and
later, "general revenue" means the sum of the general education
revenue according to section 126C.10, subdivision 1, as adjusted
according to section 127A.47, subdivisions 7 and 8, plus the
total referendum revenue minus transportation sparsity revenue
minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in
section 126C.05.

(d) "Program growth factor" means 1.02 for fiscal year
2003 deleted text begin , and deleted text end new text begin ; new text end 1.0 for fiscal deleted text begin year deleted text end new text begin years new text end 2004 new text begin , 2005, and 2006; new text end and
new text begin 1.02 for fiscal year 2007 and new text end later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 13.

Minnesota Statutes 2004, section 125A.79,
subdivision 6, is amended to read:

Subd. 6.

State total special education excess cost aid.

The state total special education excess cost aid for fiscal
year 2004 equals $92,067,000. The state total special education
aid for fiscal year 2005 equals $91,811,000. new text begin The state total
special education aid for fiscal year 2006 equals $95,520,000.
new text end The state total special education excess cost aid for fiscal
year 2006 and later fiscal years equals:

(1) the state total special education excess cost aid for
the preceding fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership
for the current fiscal year to the state total average daily
membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 14.

Minnesota Statutes 2004, section 126C.05,
subdivision 8, is amended to read:

Subd. 8.

Average daily membership.

(a) Membership for
pupils in grades kindergarten through 12 and for prekindergarten
pupils with disabilities shall mean the number of pupils on the
current roll of the school, counted from the date of entry until
withdrawal. The date of withdrawal shall mean the day the pupil
permanently leaves the school or the date it is officially known
that the pupil has left or has been legally excused. However, a
pupil, regardless of age, who has been absent from school for 15
consecutive school days during the regular school year or for
five consecutive school days during summer school or
intersession classes of flexible school year programs without
receiving instruction in the home or hospital shall be dropped
from the roll and classified as withdrawn. Nothing in this
section shall be construed as waiving the compulsory attendance
provisions cited in section 120A.22. Average daily membership
equals the sum for all pupils of the number of days of the
school year each pupil is enrolled in the district's schools
divided by the number of days the schools are in session. Days
of summer school or intersession classes of flexible school year
programs are only included in the computation of membership for
pupils with a disability not appropriately served primarily in
the regular classroom. A student must not be counted as more
than deleted text begin 1.2 deleted text end new text begin 1.5 new text end pupils in average daily membership under this
section. When the initial total average daily membership
exceeds deleted text begin 1.2 deleted text end new text begin 1.5 new text end for a pupil enrolled in more than one school
district during the fiscal year, each district's average daily
membership must be reduced proportionately.

(b) A student must not be counted as more than one pupil in
average daily membership except for purposes of section 126C.10,
subdivision 2a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 15.

Minnesota Statutes 2004, section 126C.05,
subdivision 15, is amended to read:

Subd. 15.

Learning year pupil units.

(a) When a pupil is
enrolled in a learning year program under section 124D.128, an
area learning center under sections 123A.05 and 123A.06, an
alternative program approved by the commissioner, or a contract
alternative program under section 124D.68, subdivision 3,
paragraph (d), or subdivision 3a, for more than 1,020 hours in a
school year for a secondary student, more than 935 hours in a
school year for an elementary student, or more than 425 hours in
a school year for a kindergarten student without a disability,
that pupil may be counted as more than one pupil in average
daily membership for purposes of section 126C.10, subdivision
2a. The amount in excess of one pupil must be determined by the
ratio of the number of hours of instruction provided to that
pupil in excess of: (i) the greater of 1,020 hours or the
number of hours required for a full-time secondary pupil in the
district to 1,020 for a secondary pupil; (ii) the greater of 935
hours or the number of hours required for a full-time elementary
pupil in the district to 935 for an elementary pupil in grades 1
through 6; and (iii) the greater of 425 hours or the number of
hours required for a full-time kindergarten student without a
disability in the district to 425 for a kindergarten student
without a disability. Hours that occur after the close of the
instructional year in June shall be attributable to the
following fiscal year. A kindergarten student must not be
counted as more than deleted text begin 1.2 deleted text end new text begin 1.5 new text end pupils in average daily membership
under this subdivision. A student in grades 1 through 12 must
not be counted as more than deleted text begin 1.2 deleted text end new text begin 1.5 new text end pupils in average daily
membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in
an alternative program that has an independent study component,
a district must meet the requirements in this paragraph. The
district must develop, for the pupil, a continual learning plan
consistent with section 124D.128, subdivision 3. Each school
district that has a state-approved public alternative program
must reserve revenue in an amount equal to at least 90 percent
of the district average general education revenue per pupil unit
less compensatory revenue per pupil unit times the number of
pupil units generated by students attending a state-approved
public alternative program. The amount of reserved revenue
available under this subdivision may only be spent for program
costs associated with the state-approved public alternative
program. Compensatory revenue must be allocated according to
section 126C.15, subdivision 2.

(ii) General education revenue for a pupil in an approved
alternative program without an independent study component must
be prorated for a pupil participating for less than a full year,
or its equivalent. The district must develop a continual
learning plan for the pupil, consistent with section 124D.128,
subdivision 3. Each school district that has a state-approved
public alternative program must reserve revenue in an amount
equal to at least 90 percent of the district average general
education revenue per pupil unit less compensatory revenue per
pupil unit times the number of pupil units generated by students
attending a state-approved public alternative program. The
amount of reserved revenue available under this subdivision may
only be spent for program costs associated with the
state-approved public alternative program. Compensatory revenue
must be allocated according to section 126C.15, subdivision 2.

(iii) General education revenue for a pupil in an approved
alternative program that has an independent study component must
be paid for each hour of teacher contact time and each hour of
independent study time completed toward a credit or graduation
standards necessary for graduation. Average daily membership
for a pupil shall equal the number of hours of teacher contact
time and independent study time divided by 1,020.

(iv) For an alternative program having an independent study
component, the commissioner shall require a description of the
courses in the program, the kinds of independent study involved,
the expected learning outcomes of the courses, and the means of
measuring student performance against the expected outcomes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 16.

Minnesota Statutes 2004, section 126C.10,
subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

The basic revenue for each
district equals the formula allowance times the adjusted
marginal cost pupil units for the school year. deleted text begin The formula
allowance for fiscal year 2001 is $3,964. The formula allowance
for fiscal year 2002 is $4,068. deleted text end The formula allowance for
fiscal deleted text begin year deleted text end new text begin years new text end 2003 deleted text begin and subsequent years deleted text end new text begin through 2005 new text end is
$4,601. new text begin The formula allowance for fiscal year 2006 and
subsequent fiscal years is $4,851.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 17.

Minnesota Statutes 2004, section 126C.10,
subdivision 2a, is amended to read:

Subd. 2a.

Extended time revenue.

(a) A school district's
extended time revenue is equal to the product of $4,601 and the
sum of the adjusted marginal cost pupil units of the district
for each pupil in average daily membership in excess of 1.0 and
less than deleted text begin 1.2 deleted text end new text begin 1.5 new text end according to section 126C.05, subdivision 8.

(b) A school district's extended time revenue may be used
for extended day programs, extended week programs, summer
school, and other programming authorized under the learning year
program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 18.

Minnesota Statutes 2004, section 126C.10,
subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) The
compensatory education revenue for each building in the district
equals the formula allowance deleted text begin minus $415 deleted text end times the compensation
revenue pupil units computed according to section 126C.05,
subdivision 3. Revenue shall be paid to the district and must
be allocated according to section 126C.15, subdivision 2.

(b) When the district contracting with an alternative
program under section 124D.69 changes prior to the start of a
school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting
with the alternative program for the current school year, and
shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning
center changes prior to the start of a school year, the
compensatory revenue shall be paid to the fiscal agent district
for the current school year, and shall not be paid to the fiscal
agent district for the prior school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 19.

Minnesota Statutes 2004, section 126C.40,
subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an
independent or a special school district or a group of
independent or special school districts finds it economically
advantageous to rent or lease a building or land for any
instructional purposes or for school storage or furniture
repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is
insufficient for this purpose, it may apply to the commissioner
for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under
this subdivision must contain financial justification for the
proposed levy, the terms and conditions of the proposed lease,
and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under
this subdivision must include: the reasonableness of the price,
the appropriateness of the space to the proposed activity, the
feasibility of transporting pupils to the leased building or
land, conformity of the lease to the laws and rules of the state
of Minnesota, and the appropriateness of the proposed lease to
the space needs and the financial condition of the district.
The commissioner must not authorize a levy under this
subdivision in an amount greater than deleted text begin 90 percent of deleted text end the cost to
the district of renting or leasing a building or land for
approved purposes. The proceeds of this levy must not be used
for custodial or other maintenance services. A district may not
levy under this subdivision for the purpose of leasing or
renting a district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district
may not levy under this subdivision for the purpose of leasing:
(1) a newly constructed building used primarily for regular
kindergarten, elementary, or secondary instruction; or (2) a
newly constructed building addition or additions used primarily
for regular kindergarten, elementary, or secondary instruction
that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy
under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself only if the amount is
needed by the district to make payments required by a lease
purchase agreement, installment purchase agreement, or other
deferred payments agreement authorized by law, and the levy
meets the requirements of paragraph (c). A levy authorized for
a district by the commissioner under this paragraph may be in
the amount needed by the district to make payments required by a
lease purchase agreement, installment purchase agreement, or
other deferred payments agreement authorized by law, provided
that any agreement include a provision giving the school
districts the right to terminate the agreement annually without
penalty.

(e) The total levy under this subdivision for a district
for any year must not exceed deleted text begin $90 deleted text end new text begin $100 new text end times the resident pupil
units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been
submitted to the Department of Education after April 1, 1998,
the term "instructional purpose" as used in this subdivision
excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school
district to exceed the limit in paragraph (e) if the school
district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed
the limit in paragraph (e) for not more than five years if the
district meets the following criteria:

(1) the school district has been experiencing pupil
enrollment growth in the preceding five years;

(2) the purpose of the increased levy is in the long-term
public interest;

(3) the purpose of the increased levy promotes colocation
of government services; and

(4) the purpose of the increased levy is in the long-term
interest of the district by avoiding over construction of school
facilities.

(h) A school district that is a member of an intermediate
school district may include in its authority under this section
deleted text begin 90 percent of deleted text end the costs associated with leases of administrative
and classroom space for intermediate school district programs.
This authority must not exceed deleted text begin $22.50 deleted text end new text begin $25 new text end times the adjusted
marginal cost pupil units of the member districts. This
authority is in addition to any other authority authorized under
this section.

(i) In addition to the allowable capital levies in
paragraph (a), a district that is a member of the "Technology
and Information Education Systems" data processing joint board,
that finds it economically advantageous to enter into a lease
purchase agreement for a building for a group of school
districts or special school districts for staff development
purposes, may levy for its portion of lease costs attributed to
the district within the total levy limit in paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 20.

Minnesota Statutes 2004, section 126C.43,
subdivision 2, is amended to read:

Subd. 2.

Payment to unemployment insurance program trust
fund by state and political subdivisions.

A district may
levy deleted text begin 90 percent of deleted text end the amount deleted text begin exceeding $10 times the district's
adjusted marginal cost pupil units for the fiscal year ending in
the year before the year the levy is certified deleted text end necessary (i) to
pay the district's obligations under section 268.052,
subdivision 1, and (ii) to pay for job placement services
offered to employees who may become eligible for benefits
pursuant to section 268.085 for the fiscal year the levy is
certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 21.

Minnesota Statutes 2004, section 126C.43,
subdivision 3, is amended to read:

Subd. 3.

Tax levy for judgment.

A district may levy deleted text begin 90
percent of deleted text end the amount deleted text begin exceeding $10 times the district's
adjusted marginal cost pupil units for the fiscal year ending in
the year before the year the levy is certified deleted text end necessary to pay
judgments against the district under section 123B.25 that became
final after the date the district certified its proposed levy in
the previous year. With the approval of the commissioner, a
district may spread this levy over a period not to exceed three
years. Upon approval through the adoption of a resolution by
each of an intermediate district's member school district
boards, a member school district may include its proportionate
share of the costs of a judgment against an intermediate school
district that became final under section 123B.25 after the date
that the earliest member school district certified its proposed
levy in the previous year. With the approval of the
commissioner, an intermediate school district member school
district may spread this levy over a period not to exceed three
years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 22.

Minnesota Statutes 2004, section 126C.44, is
amended to read:

126C.44 SAFE SCHOOLS LEVY.

Each district may make a levy on all taxable property
located within the district for the purposes specified in this
section. The maximum amount which may be levied for all costs
under this section shall be equal to deleted text begin $27 deleted text end new text begin $30 new text end multiplied by the
district's adjusted marginal cost pupil units for the school
year. The proceeds of the levy must be used for directly
funding the following purposes or for reimbursing the cities and
counties who contract with the district for the following
purposes: (1) to pay the costs incurred for the salaries,
benefits, and transportation costs of peace officers and
sheriffs for liaison in services in the district's schools; (2)
to pay the costs for a drug abuse prevention program as defined
in section 609.101, subdivision 3, paragraph (e), in the
elementary schools; (3) to pay the costs for a gang resistance
education training curriculum in the district's schools; (4) to
pay the costs for security in the district's schools and on
school property; or (5) to pay the costs for other crime
prevention, drug abuse, student and staff safety, and violence
prevention measures taken by the school district. The district
must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each
city or the sheriff's department of the county within the
district containing the school receiving the services. If a
local police department or a county sheriff's department does
not wish to provide the necessary services, the district may
contract for these services with any other police or sheriff's
department located entirely or partially within the school
district's boundaries. The levy authorized under this section
is not included in determining the school district's levy
limitations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end