HF 456

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/06/2023 04:03pm

A bill for an act
relating to education finance; making permanent the expansion of the voluntary
prekindergarten and school readiness plus program; appropriating money; amending
Minnesota Statutes 2022, sections 124D.151, subdivision 6; 126C.05, subdivision
1; 126C.10, subdivision 2d.

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

Section 1.

Minnesota Statutes 2022, section 124D.151, subdivision 6, is amended to read:

Subd. 6.

Participation limits.

(a) Notwithstanding section 126C.05, subdivision 1,
paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school
district or charter school must not exceed 60 percent of the kindergarten pupil units for that
school district or charter school under section 126C.05, subdivision 1, paragraph (e).

(b) In reviewing applications under subdivision 5, the commissioner must limit the total
number of participants in the voluntary prekindergarten and school readiness plus programs
under Laws 2017, First Special Session chapter 5, article 8, section 9, to not more than 7,160
participants deleted text beginfor fiscal years 2019, 2020, 2021, 2022, and 2023, and 3,160 participants for
fiscal years 2024 and later deleted text end new text begin per fiscal year new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2024 and later.
new text end

Sec. 2.

Minnesota Statutes 2022, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the age
of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in
average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22,
123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03
to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by
the commissioner and has an individualized education program is counted as the ratio of
the number of hours of assessment and education service to 825 times 1.0 with a minimum
average daily membership of 0.28, but not more than 1.0 pupil unit.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted
as the ratio of the number of hours of assessment service to 825 times 1.0.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the
commissioner is counted as the ratio of the number of hours of assessment and education
services required in the fiscal year by the pupil's individualized education program to 875,
but not more than one.

(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled
in an approved voluntary prekindergarten program under section 124D.151 is counted as
the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil
units.

(e) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
unit if the pupil is enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day,
every day kindergarten program available to all kindergarten pupils at the pupil's school.

(f) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted as 1.2
pupil units.

(i) deleted text beginFor fiscal years 2018 through 2023, deleted text end A prekindergarten pupil who:

(1) is not included in paragraph (a), (b), or (d);

(2) is enrolled in a school readiness plus program under Laws 2017, First Special Session
chapter 5, article 8, section 9; and

(3) has one or more of the risk factors specified by the eligibility requirements for a
school readiness plus program,

is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more
than 0.6 pupil units. A pupil qualifying under this paragraph must be counted in the same
manner as a voluntary prekindergarten student for all general education and other school
funding formulas.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2024 and later.
new text end

Sec. 3.

Minnesota Statutes 2022, section 126C.10, subdivision 2d, is amended to read:

Subd. 2d.

Declining enrollment revenue.

deleted text begin(a) deleted text end A school district's declining enrollment
revenue equals the greater of zero or the product of: (1) 28 percent of the formula allowance
for that year and (2) the difference between the adjusted pupil units for the preceding year
and the adjusted pupil units for the current year.

deleted text begin (b) Notwithstanding paragraph (a), for fiscal year 2024 only, prekindergarten pupil units
under section 126C.05, subdivision 1, paragraph (d), must be excluded from the calculation
of declining enrollment revenue.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2024 and later.
new text end

Sec. 4. new text beginVOLUNTARY PREKINDERGARTEN AND SCHOOL READINESS PLUS
LEVY ADJUSTMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Levy calculation adjustment. new text end

new text begin Each year, the Department of Education
must calculate each school district's levy, with and without a school district's portion of the
4,000 voluntary prekindergarten and school readiness plus participants that are included in
the school district's levy calculations, and determine the difference for each school district.
The difference must be provided to each school district in state aid.
new text end

new text begin Subd. 2. new text end

new text begin Levy certification. new text end

new text begin Each year, the Department of Education must calculate
each school district's certified levies for the year, excluding 4,000 voluntary prekindergarten
and school readiness plus participants.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2024 and later.
new text end

Sec. 5. new text beginAPPROPRIATIONS; VOLUNTARY PREKINDERGARTEN AND SCHOOL
READINESS PLUS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Aid increases. new text end

new text begin (a) For increases in general education aid, special education aid,
achievement and integration aid, charter school lease aid, alternative compensation aid,
long-term facilities maintenance aid, school breakfast aid, and school lunch aid to school
districts and charter schools attributable to the additional voluntary prekindergarten and
school readiness plus pupil units authorized in this act:
new text end

	new text begin $ new text end	new text begin 16,968,000 new text end	new text begin ..... new text end	new text begin 2024 new text end
	new text begin $ new text end	new text begin 19,069,000 new text end	new text begin ..... new text end	new text begin 2025 new text end

new text begin (b) The Department of Education must apportion the aid allocated in paragraph (a) to
each district and charter school based on the additional pupil units authorized in this act.
This aid is offset by any other amounts appropriated for the same purpose.
new text end

new text begin Subd. 3. new text end

new text begin Levy reductions. new text end

new text begin (a) For the levy reductions required in section 4 of this act:
new text end

	new text begin $ new text end	new text begin 2,467,000 new text end	new text begin ..... new text end	new text begin 2024 new text end
	new text begin $ new text end	new text begin 3,037,000 new text end	new text begin ..... new text end	new text begin 2025 new text end

new text begin (b) The commissioner must proportionately reduce each district's general education levy,
achievement and integration levy, long-term facilities maintenance levy, alternative
compensation levy, and safe schools levy.
new text end

new text begin Subd. 4. new text end

new text begin Administrative and IT costs. new text end

new text begin (a) For administrative and IT costs:
new text end

	new text begin $ new text end	new text begin 41,000 new text end	new text begin ..... new text end	new text begin 2024 new text end
	new text begin $ new text end	new text begin 8,000 new text end	new text begin ..... new text end	new text begin 2025 new text end

new text begin (b) The base for fiscal year 2026 is $4,000 and the base for fiscal year 2027 is $0.
new text end