as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 08/14/1998 |
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; providing for general education revenue; 1.4 transportation; special programs; community programs; 1.5 facilities; education organization and cooperation; 1.6 commitment to excellence; other education programs; 1.7 miscellaneous provisions; libraries; education agency 1.8 services; appropriating money; amending Minnesota 1.9 Statutes 1994, sections 120.064, subdivisions 3, 4, 8, 1.10 and 15; 121.904, subdivisions 4a and 4c; 121.912, 1.11 subdivisions 1 and 1b; 123.71, by adding a 1.12 subdivision; 124.17, subdivisions 1, 1d, 2f, and by 1.13 adding subdivisions; 124.195, subdivision 10; 124.214, 1.14 subdivisions 2 and 3; 124.223, subdivision 7; 124.225, 1.15 subdivisions 1, 3a, 7b, 7d, 7e, and 8a; 124.226, 1.16 subdivisions 1, 3, 4, and 5; 124.243, subdivisions 2, 1.17 3, and by adding a subdivision; 124.244, subdivisions 1.18 1, 2, 4, and by adding a subdivision; 124.2445; 1.19 124.248, subdivision 4, and by adding subdivisions; 1.20 124.261, subdivision 1; 124.2713, subdivisions 3 and 1.21 6; 124.2725, subdivisions 1 and 15; 124.2726, 1.22 subdivision 2; 124.2727, subdivision 6a; 124.2728, 1.23 subdivision 1; 124.273, by adding subdivisions; 1.24 124.311, subdivision 5; 124.32, subdivision 10; 1.25 124.321, subdivisions 1 and 2; 124.322; 124.323, 1.26 subdivision 1; 124.573, subdivision 3; 124.574, 1.27 subdivision 9, and by adding subdivisions; 124.918, 1.28 subdivisions 1 and 2; 124.95, subdivision 6; 124.961; 1.29 124A.02, subdivision 16, and by adding a subdivision; 1.30 124A.03, subdivisions 1g, 1h, and 2; 124A.22, 1.31 subdivisions 1, 2, 3, 4, 4a, 4b, 8a, 9, and by adding 1.32 a subdivision; 124A.23, subdivisions 1, 4, and 5; 1.33 124A.24; 125.05, subdivision 1a; 179A.04, subdivision 1.34 3; 179A.16, subdivision 7, and by adding a 1.35 subdivision; 179A.17, subdivision 1; 275.065, 1.36 subdivisions 1 and 3; 276.04, subdivision 2; 354.07, 1.37 subdivision 1; and 354.42, subdivisions 2, 3, 5, and 1.38 by adding a subdivision; Laws 1993, chapter 224, 1.39 article 8, section 21, subdivision 1; proposing coding 1.40 for new law in Minnesota Statutes, chapters 124; and 1.41 124A; repealing Minnesota Statutes 1994, sections 1.42 124.17, subdivision 1b; 124.226, subdivisions 2 and 9; 1.43 124.243, subdivisions 2a and 9; 124.26; 124.2713, 1.44 subdivisions 1, 5, and 9; 124.2714; 124.2716; 1.45 124.2727, subdivision 6a; 124.273, subdivisions 1b and 1.46 2c; 124.276; 124.278; 124.311; 124.32, subdivisions 2.1 1b, 1c, 1d, 1f, 2, and 3a; 124.573, subdivisions 1, 2, 2.2 2b, 2e, 2f, 3a, and 5a; 124.574, subdivisions 2b, 3, 2.3 4, and 4a; 124.91, subdivision 5; 124.912, 2.4 subdivisions 7 and 8; 124.914, subdivisions 2, 3, and 2.5 4; 124.916, subdivision 2; 124.962; 124A.04, 2.6 subdivision 1; 124A.22, subdivision 2a; 124A.225; 2.7 124A.27; 124A.28; 124A.29; 124A.291; and 124A.292. 2.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.9 ARTICLE 1 2.10 GENERAL EDUCATION REVENUE 2.11 Section 1. Minnesota Statutes 1994, section 121.904, 2.12 subdivision 4a, is amended to read: 2.13 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 2.14 settlement revenue" means the current, delinquent, and 2.15 manufactured home property tax receipts collected by the county 2.16 and distributed to the school district, including distributions 2.17 made pursuant to section 279.37, subdivision 7, and excluding 2.18 the amount levied pursuant to section 124.914, subdivision 1. 2.19 (b) In June of each year, the school district shall 2.20 recognize as revenue, in the fund for which the levy was made, 2.21 the lesser of: 2.22 (1) the May, June, and July school district tax settlement 2.23 revenue received in that calendar year; or 2.24 (2) the sum of the state aids and credits enumerated in 2.25 section 124.155, subdivision 2, which are for the fiscal year 2.26 payable in that fiscal year plus an amount equal to the levy 2.27 recognized as revenue in June of the prior year plus37.448 2.28 percent for fiscal year19941996 and thereafter of the amount 2.29 of the levy certified in the prior calendar year according to 2.30 section 124A.03, subdivision 2, plus or minus auditor's 2.31 adjustments, not including levy portions that are assumed by the 2.32 state; or 2.33 (3)37.448 percent for fiscal year19941996 and 2.34 thereafter of the amount of the levy certified in the prior 2.35 calendar year, plus or minus auditor's adjustments, not 2.36 including levy portions that are assumed by the state, which 2.37 remains after subtracting, by fund, the amounts levied for the 2.38 following purposes: 2.39 (i) reducing or eliminating projected deficits in the 3.1 reserved fund balance accounts for unemployment insurance and 3.2 bus purchases; 3.3 (ii) statutory operating debt pursuant to section 124.914, 3.4 subdivision 1; 3.5 (iii) retirement and severance pay pursuant to sections 3.6 122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 3.7 124.912, subdivision 1, and 124.916, subdivision 3, and Laws 3.8 1975, chapter 261, section 4; 3.9 (iv) amounts levied for bonds issued and interest thereon, 3.10 amounts levied for debt service loans and capital loans, amounts 3.11 levied for down payments under section 124.82, subdivision 3, 3.12 and amounts levied pursuant to section 136C.411; and 3.13 (v) amounts levied under section 124.755. 3.14 (c) In July of each year, the school district shall 3.15 recognize as revenue that portion of the school district tax 3.16 settlement revenue received in that calendar year and not 3.17 recognized as revenue for the previous fiscal year pursuant to 3.18 clause (b). 3.19 (d) All other school district tax settlement revenue shall 3.20 be recognized as revenue in the fiscal year of the settlement. 3.21 Portions of the school district levy assumed by the state, 3.22 including prior year adjustments and the amount to fund the 3.23 school portion of the reimbursement made pursuant to section 3.24 273.425, shall be recognized as revenue in the fiscal year 3.25 beginning in the calendar year for which the levy is payable. 3.26 Sec. 2. Minnesota Statutes 1994, section 121.904, 3.27 subdivision 4c, is amended to read: 3.28 Subd. 4c. [PROPERTY TAX SHIFT REDUCTIONCHANGE IN LEVY 3.29 RECOGNITION PERCENT.] (a) Money appropriated under section 3.30 16A.152, subdivision 2, must be used to reduce the levy 3.31 recognition percent specified in subdivision 4a, clauses (b)(2) 3.32 and (b)(3), for taxes payable in the succeeding calendar year. 3.33 (b) The levy recognition percent shall equal the result of 3.34 the following computation: the current levy recognition 3.35 percent, times the ratio of 3.36 (1) the statewide total amount of levy recognized in June 4.1 of the year in which the taxes are payable pursuant to 4.2 subdivision 4a, clause (b), excluding those levies that are 4.3 shifted for revenue recognition but are not included in the 4.4 computation of the adjustment to aids under section 124.155, 4.5 subdivision 1, reduced by the difference between the amount of 4.6 money appropriated under section 16A.152, subdivision 2, and the 4.7 amount required for the adjustment payment under clause (d), to 4.8 (2) the statewide total amount of the levy recognized in 4.9 June of the year in which the taxes are payable pursuant to 4.10 subdivision 4a, clause (b), excluding those levies that are 4.11 shifted for revenue recognition but are not included in the 4.12 computation of the adjustment to aids under section 124.155, 4.13 subdivision 1. 4.14 The result shall be rounded up to the nearest one-tenth of 4.15 a percent. However, in no case shall the levy recognition 4.16 percent be reduced below zero or increased above the current 4.17 levy recognition percent. 4.18 (c) The commissioner of finance must certify to the 4.19 commissioner of education the levy recognition percent computed 4.20 under this subdivision by January 5 of each year. The 4.21 commissioner of education must notify school districts of a 4.22 change in the levy recognition percent by January 15. 4.23 (d)For fiscal years 1994 and 1995,When the levy 4.24 recognition percent is increased or decreased as provided in 4.25 this subdivision, a special aid adjustment shall be made to each 4.26 school district with an operating referendum levy: 4.27 (i) When the levy recognition percent is increased from the 4.28 prior fiscal year, the commissioner of education shall calculate 4.29 the difference between (1) the amount of the levy under section 4.30 124A.03, that is recognized as revenue for the current fiscal 4.31 year according to subdivision 4a; and (2) the amount of the 4.32 levy, under section 124A.03, that would have been recognized as 4.33 revenue for the current fiscal year had the percentage according 4.34 to subdivision 4a, not been increased. The commissioner shall 4.35 reduce other aids due the district by the amount of the 4.36 difference. This aid reduction shall be in addition to the aid 5.1 reduction required because of the increase pursuant to this 5.2 subdivision of the levy recognition percent. 5.3 (ii) When the levy recognition percent is reducedas5.4provided in this subdivisionfrom the prior fiscal year, a 5.5 special adjustment payment shall be made to each school district 5.6 with an operating referendum levy that received an aid reduction 5.7under Laws 1991, chapter 265, article 1, section 31, or Laws5.81992, chapter 499, article 1, section 22when the levy 5.9 recognition percent was last increased. The special adjustment 5.10 payment shall be in addition to the additional payments required 5.11 because of the reduction pursuant to this subdivision of the 5.12 levy recognition percent. The amount of the special adjustment 5.13 payment shall be computed by the commissioner of education such 5.14 that any remaining portion of the aid reduction these districts 5.15 received that has not been repaid is repaid on a proportionate 5.16 basis as the levy recognition percent is reduced from 50 percent 5.17 to 31 percent. The special adjustment payment must be included 5.18 in the state aid payments to school districts according to the 5.19 schedule specified in section 124.195, subdivision 3.An5.20additional adjustment shall be made on June 30, 1995, for the5.21final payment otherwise due July 1, 1995, under Minnesota5.22Statutes 1992, section 136C.36.5.23 (e) The commissioner of finance shall transfer from the 5.24 general fund to the education aids appropriations specified by 5.25 the commissioner of education, the amounts needed to finance the 5.26 additional payments required because of the reduction pursuant 5.27 to this subdivision of the levy recognition percent. Payments 5.28 to a school district of additional state aids resulting from a 5.29 reduction in the levy recognition percent must be included in 5.30 the cash metering of payments made according to section 124.195 5.31 after January 15, and must be paid in a manner consistent with 5.32 the percent specified in that section. 5.33 Sec. 3. Minnesota Statutes 1994, section 121.912, 5.34 subdivision 1, is amended to read: 5.35 Subdivision 1. [LIMITATIONS.] (a) Except as provided in 5.36 this subdivision, sections 121.9121, 123.36, 124.243, 475.61, 6.1 and 475.65, a school district may not permanently transfer money 6.2 from (1) an operating fund to a nonoperating fund; (2) a 6.3 nonoperating fund to another nonoperating fund; or (3) a 6.4 nonoperating fund to an operating fund. 6.5 (b) Permanent transfers may be made from any fund to any 6.6 other fund to correct for prior fiscal years' errors discovered 6.7 after the books have been closed for that year. 6.8 (c) Permanent transfers may be made from the general fund 6.9 to any other operating funds according to section 123.7045 or if 6.10 the resources of the other fund are not adequate to finance 6.11 approved expenditures from that other fund. 6.12 (d) Permanent transfers mayalsobe made from the general 6.13 fund to eliminate deficits in another fund when that other fund 6.14 is being discontinued. 6.15 (e) When a district discontinues operation of a 6.16 district-owned bus fleet or a substantial portion of a fleet, 6.17 permanent transfers must be made, on June 30 of the fiscal year 6.18 that the operation is discontinued, from the fund balance 6.19 account entitled "pupil transportation fund reserved for bus 6.20 purchases" to the capital expenditure fund. The sum of the 6.21 levies authorized pursuant to sections 124.243, 124.244, and 6.22 124.83 shall be reduced by an amount equal to the amount 6.23 transferred. 6.24 (f) Any school district may transfer any amount from the 6.25 undesignated fund balance account in its transportation fund to 6.26 any other operating fund or to the reserved fund balance account 6.27 for bus purchases in its transportation fund. 6.28 (g) Permanent transfers may be made from the general fund 6.29 to the equipment account in the capital expenditure fund if the 6.30 resources of the equipment account are not adequate to finance 6.31 approved expenditures from that account. 6.32 Sec. 4. Minnesota Statutes 1994, section 121.912, 6.33 subdivision 1b, is amended to read: 6.34 Subd. 1b. [TRA AND FICA TRANSFER.] (a) Notwithstanding 6.35 subdivision 1, a districtshallmay transfer money from the 6.36 general fund to the community service fund for the employer 7.1 contributions for teacher retirement and FICA for employees who 7.2 are members of a teacher retirement association and who are paid 7.3 from the community service fund. 7.4 (b) A district shall not transfer money under paragraph (a) 7.5 for employees who are paid with money other than normal 7.6 operating funds, as defined in section 354.05, subdivision 27. 7.7 Sec. 5. Minnesota Statutes 1994, section 123.71, is 7.8 amended by adding a subdivision to read: 7.9 Subd. 5. Beginning in fiscal year 1996, each district 7.10 shall hold at least one public hearing in either April, May, or 7.11 June to discuss and seek public comment on student performance 7.12 in the district, the district's budget for the current fiscal 7.13 year, and the district's proposed budget for the following 7.14 fiscal year. The financial information provided by the district 7.15 at the hearing shall be at least that required to be published 7.16 in the next year pursuant to subdivisions 1 and 2, based on 7.17 available estimates, along with an explanation of budget 7.18 assumptions. The student information provided shall be compared 7.19 with expectations of student performance established by the 7.20 district. The hearing may be held at the beginning of a 7.21 regularly scheduled board meeting. At least a two-week notice 7.22 shall be provided to the public in a qualified newspaper of 7.23 general circulation in the district. 7.24 Sec. 6. Minnesota Statutes 1994, section 124.17, 7.25 subdivision 1, is amended to read: 7.26 Subdivision 1. [PUPIL UNIT.] Pupil units for each resident 7.27 pupil in average daily membership shall be counted according to 7.28 this subdivision. 7.29 (a) A prekindergarten pupil with a disability who is 7.30 enrolledfor the entire fiscal yearin a program approved by the 7.31 commissioner and has an individual education planthat requires7.32up to 437 hours of assessment and education services in the7.33fiscal year is counted as one-half of a pupil unit. If the plan7.34requires more than 437 hours of assessment and education7.35services, the pupilis counted as the ratio of the number of 7.36 hours of assessment and education service to875825 with a 8.1 minimum of 0.28, but not more than one. 8.2(b) A prekindergarten pupil with a disability who is8.3enrolled for less than the entire fiscal year in a program8.4approved by the commissioner is counted as the greater of:8.5(1) one-half times the ratio of the number of instructional8.6days from the date the pupil is enrolled to the date the pupil8.7withdraws to the number of instructional days in the school8.8year; or8.9(2) the ratio of the number of hours of assessment and8.10education service required in the fiscal year by the pupil's8.11individual education program plan to 875, but not more than one.8.12 (c) A prekindergarten pupil who is assessed but determined 8.13 not to be handicapped is counted as the ratio of the number of 8.14 hours of assessment service to875825. 8.15 (d) A kindergarten pupil with a disability who is enrolled 8.16 in a program approved by the commissioner is counted as the 8.17 ratio of the number of hours of assessment and education 8.18 services required in the fiscal year by the pupil's individual 8.19 education program plan to 875, but not more than one. 8.20 (e) A kindergarten pupil who is not included in paragraph 8.21 (d) is counted as.515 of a pupil unit for fiscal year 1994 and8.22 .53 of a pupil unit for fiscal year 1995 and .5 of a pupil unit 8.23 for fiscal year 1996 and thereafter. 8.24 (f) A pupil who is in any of grades 1 to 6 is counted as 8.251.03 pupil units for fiscal year 1994 and1.06 pupil units for 8.26 fiscal year 1995 and 1.0 pupil units for fiscal year 1996 and 8.27 thereafter. 8.28 (g) A pupil who is in any of grades 7 to 12 is counted as 8.29 1.3 pupil units. 8.30 (h) A pupil who is in the post-secondary enrollment options 8.31 program is counted as 1.3 pupil units. 8.32 Sec. 7. Minnesota Statutes 1994, section 124.17, 8.33 subdivision 1d, is amended to read: 8.34 Subd. 1d. [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 8.35 year1993 and thereafter1996 must be computed according to this 8.36 subdivision. 9.1 (a) The AFDC concentration percentage for a district equals 9.2 the product of 100 times the ratio of: 9.3 (1) the number of pupils enrolled in the district from 9.4 families receiving aid to families with dependent children 9.5 according to subdivision 1e; to 9.6 (2) the number of pupils in average daily membership 9.7 according to subdivision 1e enrolled in the district. 9.8 (b) The AFDC pupil weighting factor for a district equals 9.9 the lesser of one or the quotient obtained by dividing the 9.10 district's AFDC concentration percentage by 11.5. 9.11 (c) The AFDC pupil units for a district for fiscal year 9.12 1993 and thereafter equals the product of: 9.13 (1) the number of pupils enrolled in the district from 9.14 families receiving aid to families with dependent children 9.15 according to subdivision 1e; times 9.16 (2) the AFDC pupil weighting factor for the district; times 9.17 (3) .65. 9.18 Sec. 8. Minnesota Statutes 1994, section 124.17, is 9.19 amended by adding a subdivision to read: 9.20 Subd. 1f. [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 9.21 year 1997 and thereafter must be computed according to this 9.22 subdivision. 9.23 (a) The AFDC concentration percentage for a district equals 9.24 the product of 100 times the ratio of: 9.25 (1) the number of pupils enrolled in the district from 9.26 families receiving aid to families with dependent children 9.27 according to subdivision 1e; to 9.28 (2) the number of pupils in average daily membership 9.29 according to subdivision 1e enrolled in the district. 9.30 (b) The AFDC pupil weighting factor for a district equals 9.31 the lesser of one or the quotient obtained by dividing the 9.32 district's AFDC concentration percentage by 11.5. 9.33 (c) The AFDC pupil units for a district for fiscal year 9.34 1997 and thereafter equals the sum of: 9.35 (1) .03 times the number of pupils enrolled in the district 9.36 from families receiving aid to families with dependent children 10.1 according to subdivision 1e; plus 10.2 (2) the product of: 10.3 (i) the number of pupils enrolled in the district from 10.4 families receiving aid to families with dependent children 10.5 according to subdivision 1e; times 10.6 (ii) the AFDC pupil weighting factor for the district; 10.7 times 10.8 (iii) .65. 10.9 Sec. 9. Minnesota Statutes 1994, section 124.17, is 10.10 amended by adding a subdivision to read: 10.11 Subd. 1g. [AFDC ENROLLMENT OPTIONS EXCEPTION.] 10.12 Notwithstanding subdivision 1f, AFDC pupil units for AFDC pupils 10.13 transferring between a school district with a desegregation plan 10.14 and another school district under sections 120.062, 120.075, 10.15 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22, shall be 10.16 computed using the AFDC concentration percentage computed for 10.17 the pupil's district of residence. 10.18 Sec. 10. Minnesota Statutes 1994, section 124.17, 10.19 subdivision 2f, is amended to read: 10.20 Subd. 2f. [PSEO PUPILS.] The average daily membership for 10.21 astudentpupil participating in the post-secondary enrollment 10.22 options program equals the lesser of 10.23(1)(a) 1.00, or 10.24(2)(b) the greater of 10.25(i)(1) .12, or 10.26(ii)(2) the ratio of (i) the sum of the number of 10.27 instructional hours thestudentpupil is enrolled in the 10.28 secondary schoolto the product of the number of days required10.29in section 120.101, subdivision 5b, times the minimum length of10.30day required in Minnesota Rules, part 3500.1500, subpart10.311.during quarters, trimesters, or semesters during which the 10.32 pupil participates in PSEO, and hours enrolled in the secondary 10.33 school during the remainder of the school year, to (ii) the 10.34 actual number of instructional days in the school year times the 10.35 length of day in the school. 10.36 Sec. 11. Minnesota Statutes 1994, section 124.17, is 11.1 amended by adding a subdivision to read: 11.2 Subd. 4. [LIMITED ENGLISH PROFICIENCY PUPIL 11.3 UNITS.] Limited English proficiency pupil units for fiscal year 11.4 1997 and thereafter for a district enrolling pupils with limited 11.5 English proficiency on October 1 of the current school year 11.6 equals the greater of: 11.7 (1) one, or 11.8 (2) the number of pupils with limited English proficiency 11.9 enrolled in the district on October 1 of the current school year 11.10 times 0.18. 11.11 Sec. 12. Minnesota Statutes 1994, section 124.17, is 11.12 amended by adding a subdivision to read: 11.13 Subd. 5. [LEARNING GAP PUPIL UNITS.] Learning gap pupil 11.14 units for fiscal year 1997 and thereafter equals the sum of the 11.15 AFDC pupil units and the limited English proficiency pupil units. 11.16 Sec. 13. Minnesota Statutes 1994, section 124.195, 11.17 subdivision 10, is amended to read: 11.18 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 11.19 subdivisions 8, 9, and 11, each fiscal year, all education aids 11.20 and credits in this chapter and chapters 121, 123, 124A, 124B, 11.21 125, 126, 134, and section 273.1392, shall be paid at 90 percent 11.22 for districts operating a program under section 121.585 for 11.23 grades 1 to 12 for all students in the district and 85 percent 11.24 for other districts of the estimated entitlement during the 11.25 fiscal year of the entitlement, unless a higher rate has been 11.26 established according to section 121.904, subdivision 4d. 11.27 Districts operating a program under section 121.585 for grades 1 11.28 to 12 for all students in the district shall receive 85 percent 11.29 of the estimated entitlement plus an additional amount of 11.30 general education aid equal to five percent of the estimated 11.31 entitlement. For all districts, the final adjustment payment 11.32 according to subdivision 6, shall be the amount of the actual 11.33 entitlement, after adjustment for actual data, minus the 11.34 payments made during the fiscal year of the entitlementshall be11.35paid as the final adjustment payment according to subdivision 6. 11.36 Sec. 14. Minnesota Statutes 1994, section 124.918, 12.1 subdivision 1, is amended to read: 12.2 Subdivision 1. [CERTIFY LEVY LIMITS.] By September18, 12.3 the commissioner shall notify the school districts of their levy 12.4 limits. The commissioner shall certify to the county auditors 12.5 the levy limits for all school districts headquartered in the 12.6 respective counties together with adjustments for errors in 12.7 levies not penalized pursuant to section 124.918, subdivision 3, 12.8 as well as adjustments to final pupil unit counts. A school 12.9 district may require the commissioner to review the 12.10 certification and to present evidence in support of modification 12.11 of the certification. 12.12 The county auditor shall reduce levies for any excess of 12.13 levies over levy limitations pursuant to section 275.16. Such 12.14 reduction in excess levies may, at the discretion of the school 12.15 district, be spread over two calendar years. 12.16 Sec. 15. Minnesota Statutes 1994, section 124.918, 12.17 subdivision 2, is amended to read: 12.18 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By September 12.191530 of each year each district shall notify the commissioner 12.20 of education of the proposed levies in compliance with the levy 12.21 limitations of this chapter and chapters 124A, 124B, 136C, and 12.22 136D. By January 15 of each year each district shall notify the 12.23 commissioner of education of the final levies certified. The 12.24 commissioner of education shall prescribe the form of these 12.25 notifications and may request any additional information 12.26 necessary to compute certified levy amounts. 12.27 Sec. 16. Minnesota Statutes 1994, section 124A.02, 12.28 subdivision 16, is amended to read: 12.29 Subd. 16. [PUPIL UNITS, AFDC.] "AFDC pupil units" for 12.30 fiscal year19921996 means pupil units identified in section 12.31 124.17, subdivision1b1d. 12.32 "AFDC pupil units" for fiscal year19931997 and thereafter 12.33 means pupil units identified in section 124.17, subdivision1d12.34 1f. 12.35 Sec. 17. Minnesota Statutes 1994, section 124A.02, is 12.36 amended by adding a subdivision to read: 13.1 Subd. 16a. [PUPIL UNITS, LEARNING GAP.] "Learning gap 13.2 pupil units" means pupil units identified in section 124.17, 13.3 subdivision 5. 13.4 Sec. 18. Minnesota Statutes 1994, section 124A.03, 13.5 subdivision 1g, is amended to read: 13.6 Subd. 1g. [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 13.7 year 1996, a district's referendum equalization levy equals the 13.8 district's referendum equalization revenue times the lesser of 13.9 one or the ratio of the district's adjusted net tax capacity per 13.10 actual pupil unit to 100 percent of the equalizing factor as 13.11 defined in section 124A.02, subdivision 8. 13.12 (b) For fiscal year 1997 and thereafter, a district's 13.13 referendum equalization levy for a referendum levied against the 13.14 referendum market value of all taxable property as defined in 13.15 section 124A.02, subdivision 3b, equals the district's 13.16 referendum equalization revenue times the lesser of one or the 13.17 ratio of the district's referendum market value per actual pupil 13.18 unit to $476,000. 13.19 (c) For fiscal year 1997 and thereafter, a district's 13.20 referendum equalization levy for a referendum levied against the 13.21 net tax capacity of all taxable property equals the district's 13.22 referendum equalization revenue times the lesser of one or the 13.23 ratio of the district's adjusted net tax capacity per actual 13.24 pupil unit to $9,415. 13.25 Sec. 19. Minnesota Statutes 1994, section 124A.03, 13.26 subdivision 1h, is amended to read: 13.27 Subd. 1h. [REFERENDUM EQUALIZATION AID.] (a) A district's 13.28 referendum equalization aid equals the difference between its 13.29 referendum equalization revenue and levy. 13.30 (b)For fiscal year 1993, a district's referendum13.31equalization aid is equal to one-third of the amount calculated13.32in clause (a).13.33(c) For fiscal year 1994, a district's referendum13.34equalization aid is equal to two-thirds of the amount calculated13.35in clause (a).13.36(d)If a district's actual levy for referendum equalization 14.1 revenue is less than its maximum levy limit, aid shall be 14.2 proportionately reduced. 14.3 Sec. 20. Minnesota Statutes 1994, section 124A.03, 14.4 subdivision 2, is amended to read: 14.5 Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized 14.6 by section 124A.22, subdivision 1, may be increased in the 14.7 amount approved by the voters of the district at a referendum 14.8 called for the purpose. The referendum may be called by the 14.9 school board or shall be called by the school board upon written 14.10 petition of qualified voters of the district. The referendum 14.11 shall be conducted during the calendar year before the increased 14.12 levy authority, if approved, first becomes payable. Only one 14.13 election to approve an increase may be held in a calendar year. 14.14 Unless the referendum is conducted by mail under paragraph (g), 14.15 the referendum must be held on the first Tuesday after the first 14.16 Monday in November. The ballot shall state the maximum amount 14.17 of the increased revenue per actual pupil unit, the estimated 14.18 referendum tax rate as a percentage of market value in the first 14.19 year it is to be levied, and that the revenue shall be used to 14.20 finance school operations. The ballot may state that existing 14.21 referendum levy authority is expiring. In this case, the ballot 14.22 may also compare the proposed levy authority to the existing 14.23 expiring levy authority, and express the proposed increase as 14.24 the amount, if any, over the expiring referendum levy 14.25 authority. The ballot shall designate the specific number of 14.26 years, not to exceed ten, for which the referendum authorization 14.27 shall apply. The ballot may contain a textual portion with the 14.28 information required in this subdivision and a question stating 14.29 substantially the following: 14.30 "Shall the increase in the revenue proposed by (petition 14.31 to) the board of ........., School District No. .., be approved?" 14.32 If approved, an amount equal to the approved revenue per 14.33 actual pupil unit times the actual pupil units for the school 14.34 year beginning in the year after the levy is certified shall be 14.35 authorized for certification for the number of years approved, 14.36 if applicable, or until revoked or reduced by the voters of the 15.1 district at a subsequent referendum. 15.2 (b) The school board shall prepare and deliver by first 15.3 class mail at least 15 days but no more than 30 days prior to 15.4 the day of the referendum to each taxpayer a notice of the 15.5 referendum and the proposed revenue increase. The school board 15.6 need not mail more than one notice to any taxpayer. For the 15.7 purpose of giving mailed notice under this subdivision, owners 15.8 shall be those shown to be owners on the records of the county 15.9 auditor or, in any county where tax statements are mailed by the 15.10 county treasurer, on the records of the county treasurer. Every 15.11 property owner whose name does not appear on the records of the 15.12 county auditor or the county treasurer shall be deemed to have 15.13 waived this mailed notice unless the owner has requested in 15.14 writing that the county auditor or county treasurer, as the case 15.15 may be, include the name on the records for this purpose. The 15.16 notice must project the anticipated amount of tax increase in 15.17 annual dollars and annual percentage for typical residential 15.18 homesteads, agricultural homesteads, apartments, and 15.19 commercial-industrial property within the school district. 15.20 The notice for a referendum may state that an existing 15.21 referendum levy is expiring and project the anticipated amount 15.22 of increase over the existing referendum levy, if any, in annual 15.23 dollars and annual percentage for typical residential 15.24 homesteads, agricultural homesteads, apartments, and 15.25 commercial-industrial property within the school district. 15.26 The notice must include the following statement: "Passage 15.27 of this referendum will result in an increase in your property 15.28 taxes." 15.29 (c) A referendum on the question of revoking or reducing 15.30 the increased revenue amount authorized pursuant to paragraph 15.31 (a) may be called by the school board and shall be called by the 15.32 school board upon the written petition of qualified voters of 15.33 the district. A referendum to revoke or reduce the levy amount 15.34 must be based upon the dollar amount, local tax rate, or amount 15.35 per actual pupil unit, that was stated to be the basis for the 15.36 initial authorization. Revenue approved by the voters of the 16.1 district pursuant to paragraph (a) must be received at least 16.2 once before it is subject to a referendum on its revocation or 16.3 reduction for subsequent years. Only one revocation or 16.4 reduction referendum may be held to revoke or reduce referendum 16.5 revenue for any specific year and for years thereafter. 16.6 (d) A petition authorized by paragraph (a) or (c) shall be 16.7 effective if signed by a number of qualified voters in excess of 16.8 15 percent of the registered voters of the school district on 16.9 the day the petition is filed with the school board. A 16.10 referendum invoked by petition shall be held on the date 16.11 specified in paragraph (a). 16.12 (e) The approval of 50 percent plus one of those voting on 16.13 the question is required to pass a referendum authorized by this 16.14 subdivision. 16.15 (f) At least 15 days prior to the day of the referendum, 16.16 the district shall submit a copy of the notice required under 16.17 paragraph (b) to the commissioner of education. Within 15 days 16.18 after the results of the referendum have been certified by the 16.19 school board, or in the case of a recount, the certification of 16.20 the results of the recount by the canvassing board, the district 16.21 shall notify the commissioner of education of the results of the 16.22 referendum. 16.23 (g) Except for a referendum held under subdivision 2b, any 16.24 referendum under this section held on a day other than the first 16.25 Tuesday after the first Monday in November must be conducted by 16.26 mail in accordance with section 204B.46. Notwithstanding 16.27 paragraph (b) to the contrary, in the case of a referendum 16.28 conducted by mail under this paragraph, the notice required by 16.29 paragraph (b) shall be prepared and delivered by first class 16.30 mail at least 20 days before the referendum. 16.31 Sec. 21. Minnesota Statutes 1994, section 124A.22, 16.32 subdivision 1, is amended to read: 16.33 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal 16.34 year 1996, the general education revenue for each district 16.35 equals the sum of the district's basic revenue, compensatory 16.36 education revenue, training and experience revenue, secondary 17.1 sparsity revenue, elementary sparsity revenue, and supplemental 17.2 revenue. 17.3 (b) For fiscal year 1997 and thereafter, the general 17.4 education revenue for each district equals the sum of the 17.5 district's basic revenue, learning gap revenue, training and 17.6 experience revenue, secondary sparsity revenue, elementary 17.7 sparsity revenue, and supplemental revenue. 17.8 Sec. 22. Minnesota Statutes 1994, section 124A.22, 17.9 subdivision 2, is amended to read: 17.10 Subd. 2. [BASIC REVENUE.] The basic revenue for each 17.11 district equals the formula allowance times the actual pupil 17.12 units for the school year. The formula allowance forfiscal17.13years 1993 and 1994 is $3,050. The formula allowance forfiscal 17.14 year 1995and subsequent fiscal yearsis $3,150. The formula 17.15 allowance for fiscal year 1996 is $3,220. The formula allowance 17.16 for fiscal year 1997 and subsequent fiscal years is $3,240. 17.17 Sec. 23. Minnesota Statutes 1994, section 124A.22, 17.18 subdivision 3, is amended to read: 17.19 Subd. 3. [FISCAL YEAR 1996 COMPENSATORY EDUCATION 17.20 REVENUE.](a) For fiscal year 1992, the compensatory education17.21revenue for each district equals the formula allowance times the17.22AFDC pupil units counted according to section 124.17,17.23subdivision 1b.17.24(b) For fiscal year 1993 and thereafter,For fiscal year 17.25 1996, themaximumcompensatory education revenue for each 17.26 district equals the formula allowance times the AFDC pupil units 17.27 computed according to section 124.17, subdivision 1d. 17.28(c) For fiscal year 1993 and thereafter, the previous17.29formula compensatory education revenue for each district equals17.30the formula allowance times the AFDC pupil units computed17.31according to section 124.17, subdivision 1b.17.32(d) For fiscal year 1993, the compensatory education17.33revenue for each district equals the district's previous formula17.34compensatory revenue plus one-fourth of the difference between17.35the district's maximum compensatory education revenue and the17.36district's previous formula compensatory education revenue.18.1(e) For fiscal year 1994, the compensatory education18.2revenue for each district equals the district's previous formula18.3compensatory education revenue plus one-half of the difference18.4between the district's maximum compensatory education revenue18.5and the district's previous formula compensatory education18.6revenue.18.7(f) For fiscal year 1995, the compensatory education18.8revenue for each district equals the district's previous formula18.9compensatory education revenue plus three-fourths of the18.10difference between the district's maximum compensatory education18.11revenue and the district's previous formula compensatory18.12education revenue.18.13(g) For fiscal year 1996 and thereafter, the compensatory18.14education revenue for each district equals the district's18.15maximum compensatory education revenue.18.16 Sec. 24. Minnesota Statutes 1994, section 124A.22, is 18.17 amended by adding a subdivision to read: 18.18 Subd. 3a. [LEARNING GAP REVENUE.] (a) A district is 18.19 eligible for learning gap revenue under this subdivision if the 18.20 school board of the district has adopted a plan to close the 18.21 learning gap and submits the plan to the department of education 18.22 by June 1 of the fiscal year preceding the fiscal year for which 18.23 the district will receive revenue. 18.24 (b) For fiscal year 1997 and thereafter, the learning gap 18.25 revenue for an eligible district equals the sum of: 18.26 (1) $4 times the actual pupil units for the school year, 18.27 and 18.28 (2) the formula allowance times the learning gap pupil 18.29 units computed according to section 124.17, subdivision 5. 18.30 Sec. 25. Minnesota Statutes 1994, section 124A.22, 18.31 subdivision 4, is amended to read: 18.32 Subd. 4. [TRAINING AND EXPERIENCE REVENUE.](a)The 18.33previous formula training and experience revenue for each18.34district equals the greater of zero or the result of the18.35following computation:18.36(1) subtract 1.6 from the training and experience index;19.1(2) multiply the result in clause (1) by the product of19.2$700 times the actual pupil units for the school year.19.3(b) The maximumtraining and experience revenue for each 19.4 district equals the greater of zero or the result of the 19.5 following computation: 19.6 (1) subtract .8 from the training and experience index; 19.7 (2) multiply the result in clause (1) by the product of 19.8 $660 times the actual pupil units for the school year. 19.9(c) For fiscal year 1994, the training and experience19.10revenue for each district equals the district's previous formula19.11training and experience revenue plus one-half of the difference19.12between the district's maximum training and experience revenue19.13and the district's previous formula training and experience19.14revenue.19.15(d) For fiscal year 1995, the training and experience19.16revenue for each district equals the district's previous formula19.17training and experience revenue plus three-fourths of the19.18difference between the district's maximum training and19.19experience revenue and the district's previous formula training19.20and experience revenue.19.21(e) For fiscal year 1996 and thereafter, the training and19.22experience revenue for each district equals the district's19.23maximum training and experience revenue.19.24 Sec. 26. Minnesota Statutes 1994, section 124A.22, 19.25 subdivision 4a, is amended to read: 19.26 Subd. 4a. [FISCAL YEAR 1996 TRAINING AND EXPERIENCE LEVY.] 19.27 A district's training and experience levy for fiscal year 1996 19.28 equals its training and experience revenue times the lesser of 19.29 one or the ratio of the district's adjusted net tax capacity per 19.30 actual pupil unit for the year before the year the levy is 19.31 certified to the equalizing factor for the school year to which 19.32 the levy is attributable. 19.33 Sec. 27. Minnesota Statutes 1994, section 124A.22, 19.34 subdivision 4b, is amended to read: 19.35 Subd. 4b. [FISCAL YEAR 1996 TRAINING AND EXPERIENCE AID.] 19.36 A district's training and experience aid for fiscal year 1996 20.1 equals its training and experience revenue minus its training 20.2 and experience levy times the ratio of the actual amount levied 20.3 to the permitted levy. 20.4 Sec. 28. Minnesota Statutes 1994, section 124A.22, 20.5 subdivision 8a, is amended to read: 20.6 Subd. 8a. [SUPPLEMENTAL LEVY.] To obtain supplemental 20.7 revenue, a district may levy an amount not more than the product 20.8 of its supplemental revenue for the school year times the lesser 20.9 of one or the ratio of its general education levy to its general 20.10 education revenue, excludingtraining and experience revenue and20.11 supplemental revenue, for the same year. 20.12 Sec. 29. Minnesota Statutes 1994, section 124A.22, 20.13 subdivision 9, is amended to read: 20.14 Subd. 9. [SUPPLEMENTAL REVENUE REDUCTION.] A district's 20.15 supplemental revenue allowance is reduced by the sum of: 20.16 (1) the sum of one-fourth of the difference of: 20.17 (i) the sum of the district's training and experience 20.18 revenue and compensatory revenue per actual pupil unit forthat20.19 fiscal year 1996, and 20.20 (ii) the sum of district's training and experience revenue 20.21 and compensatory revenue per actual pupil unit for fiscal year 20.22 1994; and 20.23 (2)the difference between the formula allowance for the20.24current fiscal year and $3,050$100. 20.25 A district's supplemental revenue allowance may not be less 20.26 than zero. 20.27 Sec. 30. Minnesota Statutes 1994, section 124A.23, 20.28 subdivision 1, is amended to read: 20.29 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 20.30 commissioner shall establish the general education tax rate by 20.31 July 1 of each year for levies payable in the following year. 20.32 The general education tax capacity rate shall be a rate, rounded 20.33 up to the nearest tenth of a percent, that, when applied to the 20.34 adjusted net tax capacity for all districts, raises the amount 20.35 specified for the general education levy inthis subdivision20.36 section 124A.231.The general education tax rate shall be the21.1rate that raises $1,044,000,000 for fiscal year 1995 and21.2$1,054,000,000 for fiscal year 1996 and later fiscal years.The 21.3 general education tax rate may not be changed due to changes or 21.4 corrections made to a district's adjusted net tax capacity after 21.5 the tax rate has been established. 21.6 Sec. 31. Minnesota Statutes 1994, section 124A.23, 21.7 subdivision 4, is amended to read: 21.8 Subd. 4. [GENERAL EDUCATION AID.] A district's general 21.9 education aid is the sum of the following amounts: 21.10 (1) the product of (i) the difference between the general 21.11 education revenue,excluding training and experience revenue and21.12 supplemental revenue, and the general education levy, times (ii) 21.13 the ratio of the actual amount levied to the permitted levy; 21.14 (2)training and experience aid according to section21.15124A.22, subdivision 4b;21.16(3)supplemental aid according to section 124.214, 21.17 subdivision 2; 21.18(4)(3) shared time aid according to section 124A.02, 21.19 subdivision 21; and 21.20(5)(4) referendum aid according to section 124A.03. 21.21 Sec. 32. Minnesota Statutes 1994, section 124A.23, 21.22 subdivision 5, is amended to read: 21.23 Subd. 5. [USES OF REVENUE.]Except as provided in section21.24124A.225,General education revenue may be used during the 21.25 regular school year and the summer for general and special 21.26 school purposes. 21.27 Sec. 33. [124A.231] [STATE DETERMINED UNIFORM EDUCATION 21.28 LEVY.] 21.29 Subdivision 1. [DEFINITION.] The state determined uniform 21.30 education levy is the sum of the following: 21.31 (a) the general education levy according to section 21.32 124A.23, subdivision 2; 21.33 (b) the basic transportation levy according to section 21.34 124.226, subdivision 1; 21.35 (c) the capital expenditure facilities levy according to 21.36 section 124.243, subdivision 3; and 22.1 (d) the capital expenditure equipment levy according to 22.2 section 124.244, subdivision 2. 22.3 Subd. 2. [AMOUNT.] The state determined uniform education 22.4 levy equals $1,386,500,000 for fiscal year 1997 and later years. 22.5 Subd. 3. [LEVY ALLOCATION.] The state determined uniform 22.6 education levy is allocated among levy categories as follows: 22.7 (a) the general education levy equals 90.36 percent of the 22.8 amount specified in subdivision 2; 22.9 (b) the basic transportation levy equals 4.87 percent of 22.10 the amount specified in subdivision 2; 22.11 (c) the capital expenditure facilities levy equals 3.10 22.12 percent of the amount specified in subdivision 2; and 22.13 (d) the capital expenditure equipment levy equals 1.67 22.14 percent of the amount specified in subdivision 2. 22.15 Sec. 34. Minnesota Statutes 1994, section 124A.24, is 22.16 amended to read: 22.17 124A.24 [GENERAL EDUCATION LEVY EQUITY.] 22.18 If a district's general education levy is determined 22.19 according to section 124A.23, subdivision 3, an amount must be 22.20 deducted from state aid authorized in this chapter and chapters 22.21 124 and 124B, receivable for the same school year, and from 22.22 other state payments receivable for the same school year 22.23 authorized in chapter 273. The aid in section 124.646 must not 22.24 be reduced. 22.25 The amount of the deduction equals the difference between: 22.26 (1) the general education tax rate, according to section 22.27 124A.23, times the district's adjusted net tax capacity used to 22.28 determine the general education aid for the same school year; 22.29 and 22.30 (2) the district's general education revenue, excluding 22.31training and experience revenue andsupplemental revenue, for 22.32 the same school year, according to section 124A.22. 22.33 Sec. 35. [124A.281] [LEARNING GAP REVENUE.] 22.34 Subdivision 1. [USE OF THE REVENUE.] The learning gap 22.35 revenue under section 124A.22, subdivision 3a, must be used to 22.36 meet the educational needs of pupils whose educational 23.1 achievement is below the level that is appropriate for pupils of 23.2 their age. Those needs may be met by providing at least some of 23.3 the following: 23.4 (1) remedial instruction in reading, language arts, and 23.5 mathematics to improve the achievement level of these pupils; 23.6 (2) additional teachers and teacher aides to provide more 23.7 individualized instruction to these pupils; 23.8 (3) summer programs that enable these pupils to improve 23.9 their achievement or that reemphasize material taught during the 23.10 regular school year; 23.11 (4) in-service education for teachers, teacher aides, 23.12 principals, and other personnel to improve their ability to 23.13 recognize these pupils and provide appropriate responses to the 23.14 pupils' needs; 23.15 (5) instructional material for these pupils including: 23.16 textbooks, workbooks, periodicals, pamphlets, photographs, 23.17 reproductions, filmstrips, prepared slides, prerecorded video 23.18 programs, sound recordings, desk charts, games, study prints and 23.19 pictures, desk maps, models, learning kits, blocks and cubes, 23.20 flashcards, instructional computer software programs, pencils, 23.21 pens, crayons, notebooks, duplicating fluids, and papers; 23.22 (6) programs to reduce truancy, encourage completion of 23.23 high school, enhance self-concept, provide health services, 23.24 provide nutrition services, provide a safe and secure learning 23.25 environment, provide coordination for pupils receiving services 23.26 from other governmental agencies, provide psychological services 23.27 to determine the level of social, emotional, cognitive, and 23.28 intellectual development, and provide counseling services, 23.29 guidance services, and social work services; 23.30 (7) bilingual programs, bicultural programs, and programs 23.31 for pupils of limited English proficiency; and 23.32 (8) assurance of mastery programs according to section 23.33 124.312. 23.34 Subd. 2. [BUILDING ALLOCATION.] A district must consider 23.35 the concentration of children from low-income families and 23.36 children with limited English proficiency in each school 24.1 building in the district when allocating learning gap revenue. 24.2 Subd. 3. [SEPARATE ACCOUNTS.] Each district that receives 24.3 learning gap revenue shall maintain separate accounts to 24.4 identify expenditures for salaries and programs related to this 24.5 revenue. 24.6 Subd. 4. [ANNUAL EXPENDITURE REPORT.] Each year a district 24.7 that receives learning gap revenue shall submit a report 24.8 identifying the expenditures it incurred in providing services 24.9 to pupils described in subdivision 1. The report must conform 24.10 to uniform financial and reporting standards established for 24.11 this purpose. 24.12 Subd. 5. [COMMUNITY LEARNING PLAN.] (a) Districts must 24.13 develop a community learning plan to address how progress toward 24.14 closing the learning gap between learners with significant 24.15 learning needs and their peers will be achieved and measured. 24.16 The revenue to support this plan will include federal Title I 24.17 revenue as well as other revenue at the discretion of the 24.18 district. Districts receiving integration grants to implement 24.19 desegregation plans mandated by the state board must incorporate 24.20 the requirements of this program into their community learning 24.21 plan. The district must include representation from other 24.22 local, city, county, and community agencies in the development 24.23 of this plan. The plan must include at least the following: 24.24 (1) district criteria which identify learners to be served 24.25 with revenue under this section; 24.26 (2) the current achievement levels at least in the areas of 24.27 reading and mathematics; 24.28 (3) the measurable results which the district expects to 24.29 achieve over a two year period of time through the 24.30 implementation of the community learning plan; 24.31 (4) the measurement procedures to determine progress toward 24.32 achieving results; 24.33 (5) the process as to how the results will be reported to 24.34 the public; 24.35 (6) how other local agencies will assist in students 24.36 attaining the learning results identified in clause (3) and the 25.1 resources which those agencies will commit to this effort; 25.2 (7) the expectations being placed on students and families 25.3 in terms of determining how they will collaborate to better 25.4 assure that students will meet the learning results identified 25.5 in clause (3); 25.6 (8) the local, state, and federal revenue being used to 25.7 carry out this program; and 25.8 (9) other requirements determined by the commissioner to be 25.9 necessary in order for the community learning plan to meet the 25.10 federal requirements of federal programs included in the plan. 25.11 (b) Districts must annually provide the commissioner with 25.12 data regarding their success at closing the learning gap. 25.13 Districts required by the state board of education to have 25.14 desegregation plans must demonstrate progress toward closing the 25.15 learning gap between learners of color and their peers. 25.16 (c) Beginning after the 1996-1997 school year, if districts 25.17 required to have a desegregation plan do not make reasonable 25.18 progress toward closing the learning gap between learners of 25.19 color and their peers, the following procedure shall be followed: 25.20 (1) within 60 days after receipt of the annual data report, 25.21 the commissioner shall inform the district whether sufficient 25.22 progress toward closing the learning gap is being made for each 25.23 site. Progress shall be determined based on the district 25.24 targets in their plan; 25.25 (2) if satisfactory progress has not been achieved, the 25.26 commissioner shall provide assistance to the district and to the 25.27 sites; and 25.28 (3) if after one year, satisfactory progress has not been 25.29 achieved, the commissioner shall either continue to provide 25.30 assistance to the district for a defined period of time or 25.31 authorize the local school board to reconstitute the sites. 25.32 Notwithstanding the provisions of local contracts, the local 25.33 school board, at its discretion, may develop a plan for 25.34 reconstitution of the sites and submit that plan to the 25.35 commissioner for approval. 25.36 Sec. 36. Minnesota Statutes 1994, section 275.065, 26.1 subdivision 1, is amended to read: 26.2 Subdivision 1. [PROPOSED LEVY.] (a) Notwithstanding any 26.3 law or charter to the contrary, on or before September 15, each 26.4 taxing authority, other than a school district, shall adopt a 26.5 proposed budget andeach taxing authorityshall certify to the 26.6 county auditor the proposed or, in the case of a town, the final 26.7 property tax levy for taxes payable in the following year. 26.8 (b) On or before September 30, each school district may 26.9 certify to the county auditor the proposed property tax levy for 26.10 taxes payable in the following year. If a school district does 26.11 not certify a proposed property tax levy to the county auditor 26.12 by September 30, the school district shall be deemed to have 26.13 certified a proposed property tax levy equal to the maximum levy 26.14 limitation certified by the commissioner of education to the 26.15 county auditor according to section 124.918, subdivision 1. 26.16 (c) If the board of estimate and taxation or any similar 26.17 board that establishes maximum tax levies for taxing 26.18 jurisdictions within a first class city certifies the maximum 26.19 property tax levies for funds under its jurisdiction by charter 26.20 to the county auditor by September 15, the city shall be deemed 26.21 to have certified its levies for those taxing jurisdictions. 26.22 (d) For purposes of this section, "taxing authority" 26.23 includes all home rule and statutory cities, towns, counties, 26.24 school districts, and special taxing districts as defined in 26.25 section 275.066. Intermediate school districts that levy a tax 26.26 under chapter 124 or 136D, joint powers boards established under 26.27 sections 124.491 to 124.495, and common school districts No. 26.28 323, Franconia, and No. 815, Prinsburg, are also special taxing 26.29 districts for purposes of this section. 26.30 Sec. 37. Minnesota Statutes 1994, section 275.065, 26.31 subdivision 3, is amended to read: 26.32 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 26.33 county auditor shall prepare and the county treasurer shall 26.34 deliver after November 10 and on or before November 24 each 26.35 year, by first class mail to each taxpayer at the address listed 26.36 on the county's current year's assessment roll, a notice of 27.1 proposed property taxes and, in the case of a town, final 27.2 property taxes. 27.3 (b) The commissioner of revenue shall prescribe the form of 27.4 the notice. 27.5 (c) The notice must inform taxpayers that it contains the 27.6 amount of property taxes each taxing authority other than a town 27.7 proposes to collect for taxes payable the following year and, 27.8 for a town, the amount of its final levy. It must clearly state 27.9 that each taxing authority, including regional library districts 27.10 established under section 134.201, and including the 27.11 metropolitan taxing districts as defined in paragraph (i), but 27.12 excluding all other special taxing districts and towns, will 27.13 hold a public meeting to receive public testimony on the 27.14 proposed budget and proposed or final property tax levy, or, in 27.15 case of a school district, on the current budget and proposed 27.16 property tax levy. It must clearly state the time and place of 27.17 each taxing authority's meeting and an address where comments 27.18 will be received by mail. The notice must include the estimated 27.19 percentage increase in Minnesota personal income, provided by 27.20 the commissioner of revenue under section 275.064, in a way to 27.21 facilitate comparison of the proposed budget and levy increases 27.22 with the increase in personal income. For 1993, the notice must 27.23 clearly state that each taxing authority holding a public 27.24 meeting will describe the increases or decreases of the total 27.25 budget, including employee and independent contractor 27.26 compensation in the prior year, current year, and the proposed 27.27 budget year. 27.28 (d) The notice must state for each parcel: 27.29 (1) the market value of the property as determined under 27.30 section 273.11, and used for computing property taxes payable in 27.31 the following year and for taxes payable in the current year; 27.32 and, in the case of residential property, whether the property 27.33 is classified as homestead or nonhomestead. The notice must 27.34 clearly inform taxpayers of the years to which the market values 27.35 apply and that the values are final values; 27.36 (2) by county, city or town, school district excess 28.1 referenda levy, state determined uniform education levy as 28.2 defined in section 124A.231, remaining school district levy, the 28.3 sum of the school district levies, regional library district, if 28.4 in existence, the total of the metropolitan special taxing 28.5 districts as defined in paragraph (i) and the sum of the 28.6 remaining special taxing districts, and as a total of the taxing 28.7 authorities, including all special taxing districts, the 28.8 proposed or, for a town, final net tax on the property for taxes 28.9 payable the following year and the actual tax for taxes payable 28.10 the current year.For the purposes of this subdivision, "school28.11district excess referenda levy" means school district taxes for28.12operating purposes approved at referendums, including those28.13taxes based on net tax capacity as well as those based on market28.14value. "School district excess referenda levy" does not include28.15school district taxes for capital expenditures approved at28.16referendums or school district taxes to pay for the debt service28.17on bonds approved at referenda.In the case of the city of 28.18 Minneapolis, the levy for the Minneapolis library board and the 28.19 levy for Minneapolis park and recreation shall be listed 28.20 separately from the remaining amount of the city's levy. In the 28.21 case of a parcel where tax increment or the fiscal disparities 28.22 areawide tax applies, the proposed tax levy on the captured 28.23 value or the proposed tax levy on the tax capacity subject to 28.24 the areawide tax must each be stated separately and not included 28.25 in the sum of the special taxing districts; and 28.26 (3) the increase or decrease in the amounts in clause (2) 28.27 from taxes payable in the current year to proposed or, for a 28.28 town, final taxes payable the following year, expressed as a 28.29 dollar amount and as a percentage. 28.30 (e) The notice must clearly state that the proposed or 28.31 final taxes do not include the following: 28.32 (1) special assessments; 28.33 (2) levies approved by the voters after the date the 28.34 proposed taxes are certified, including bond referenda, school 28.35 district levy referenda, and levy limit increase referenda; 28.36 (3) amounts necessary to pay cleanup or other costs due to 29.1 a natural disaster occurring after the date the proposed taxes 29.2 are certified; 29.3 (4) amounts necessary to pay tort judgments against the 29.4 taxing authority that become final after the date the proposed 29.5 taxes are certified; and 29.6 (5) the contamination tax imposed on properties which 29.7 received market value reductions for contamination. 29.8 (f) Except as provided in subdivision 7, failure of the 29.9 county auditor to prepare or the county treasurer to deliver the 29.10 notice as required in this section does not invalidate the 29.11 proposed or final tax levy or the taxes payable pursuant to the 29.12 tax levy. 29.13 (g) If the notice the taxpayer receives under this section 29.14 lists the property as nonhomestead and the homeowner provides 29.15 satisfactory documentation to the county assessor that the 29.16 property is owned and has been used as the owner's homestead 29.17 prior to June 1 of that year, the assessor shall reclassify the 29.18 property to homestead for taxes payable in the following year. 29.19 (h) In the case of class 4 residential property used as a 29.20 residence for lease or rental periods of 30 days or more, the 29.21 taxpayer must either: 29.22 (1) mail or deliver a copy of the notice of proposed 29.23 property taxes to each tenant, renter, or lessee; or 29.24 (2) post a copy of the notice in a conspicuous place on the 29.25 premises of the property. 29.26 (i) For purposes of this subdivision, subdivisions 5a and 29.27 6, "metropolitan special taxing districts" means the following 29.28 taxing districts in the seven-county metropolitan area that levy 29.29 a property tax for any of the specified purposes listed below: 29.30 (1) metropolitan council under section 473.132, 473.167, 29.31 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 29.32 (2) metropolitan airports commission under section 473.667, 29.33 473.671, or 473.672; and 29.34 (3) metropolitan mosquito control commission under section 29.35 473.711. 29.36 For purposes of this section, any levies made by the 30.1 regional rail authorities in the county of Anoka, Carver, 30.2 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 30.3 398A shall be included with the appropriate county's levy and 30.4 shall be discussed at that county's public hearing. 30.5 The notice must be mailed or posted by the taxpayer by 30.6 November 27 or within three days of receipt of the notice, 30.7 whichever is later. A taxpayer may notify the county treasurer 30.8 of the address of the taxpayer, agent, caretaker, or manager of 30.9 the premises to which the notice must be mailed in order to 30.10 fulfill the requirements of this paragraph. 30.11 Sec. 38. Minnesota Statutes 1994, section 276.04, 30.12 subdivision 2, is amended to read: 30.13 Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 30.14 shall provide for the printing of the tax statements. The 30.15 commissioner of revenue shall prescribe the form of the property 30.16 tax statement and its contents. The statement must contain a 30.17 tabulated statement of the dollar amount due to each taxing 30.18 authority from the parcel of real property for which a 30.19 particular tax statement is prepared. The dollar amounts due 30.20 the county, township or municipality, the total of the 30.21 metropolitan special taxing districts as defined in section 30.22 275.065, subdivision 3, paragraph (i), school district excess 30.23 referenda levy, state determined uniform education levy as 30.24 defined in section 124A.231, remaining school district levy, the 30.25 sum of the school district levies, and the total of other voter 30.26 approved referenda levies based on market value under section 30.27 275.61 must be separately stated. The amounts due all other 30.28 special taxing districts, if any, may be aggregated.For the30.29purposes of this subdivision, "school district excess referenda30.30levy" means school district taxes for operating purposes30.31approved at referenda, including those taxes based on market30.32value. "School district excess referenda levy" does not include30.33school district taxes for capital expenditures approved at30.34referendums or school district taxes to pay for the debt service30.35on bonds approved at referenda.The amount of the tax on 30.36 contamination value imposed under sections 270.91 to 270.98, if 31.1 any, must also be separately stated. The dollar amounts, 31.2 including the dollar amount of any special assessments, may be 31.3 rounded to the nearest even whole dollar. For purposes of this 31.4 section whole odd-numbered dollars may be adjusted to the next 31.5 higher even-numbered dollar. The amount of market value 31.6 excluded under section 273.11, subdivision 16, if any, must also 31.7 be listed on the tax statement. The statement shall include the 31.8 following sentence, printed in upper case letters in boldface 31.9 print: "THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY 31.10 TAX REVENUES. THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX 31.11 BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF 31.12 GOVERNMENT." 31.13 (b) The property tax statements for manufactured homes and 31.14 sectional structures taxed as personal property shall contain 31.15 the same information that is required on the tax statements for 31.16 real property. 31.17 (c) Real and personal property tax statements must contain 31.18 the following information in the order given in this paragraph. 31.19 The information must contain the current year tax information in 31.20 the right column with the corresponding information for the 31.21 previous year in a column on the left: 31.22 (1) the property's estimated market value under section 31.23 273.11, subdivision 1; 31.24 (2) the property's taxable market value after reductions 31.25 under section 273.11, subdivisions 1a and 16; 31.26 (3) the property's gross tax, calculated by multiplying the 31.27 property's gross tax capacity times the total local tax rate and 31.28 adding to the result the sum of the aids enumerated in clause 31.29 (3); 31.30 (4) a total of the following aids: 31.31 (i) education aids payable under chapters 124 and 124A; 31.32 (ii) local government aids for cities, towns, and counties 31.33 under chapter 477A; and 31.34 (iii) disparity reduction aid under section 273.1398; 31.35 (5) for homestead residential and agricultural properties, 31.36 the homestead and agricultural credit aid apportioned to the 32.1 property. This amount is obtained by multiplying the total 32.2 local tax rate by the difference between the property's gross 32.3 and net tax capacities under section 273.13. This amount must 32.4 be separately stated and identified as "homestead and 32.5 agricultural credit." For purposes of comparison with the 32.6 previous year's amount for the statement for taxes payable in 32.7 1990, the statement must show the homestead credit for taxes 32.8 payable in 1989 under section 273.13, and the agricultural 32.9 credit under section 273.132 for taxes payable in 1989; 32.10 (6) any credits received under sections 273.119; 273.123; 32.11 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 32.12 473H.10, except that the amount of credit received under section 32.13 273.135 must be separately stated and identified as "taconite 32.14 tax relief"; and 32.15 (7) the net tax payable in the manner required in paragraph 32.16 (a). 32.17 The commissioner of revenue shall certify to the county 32.18 auditor the actual or estimated aids enumerated in clauses (3) 32.19 and (4) that local governments will receive in the following 32.20 year. In the case of a county containing a city of the first 32.21 class, for taxes levied in 1991, and for all counties for taxes 32.22 levied in 1992 and thereafter, the commissioner must certify 32.23 this amount by September 1. 32.24 Sec. 39. [APPROPRIATIONS.] 32.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 32.26 indicated in this section are appropriated from the general fund 32.27 to the department of education for the fiscal years designated. 32.28 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 32.29 general and supplemental education aid: 32.30 $1,932,836,000 ..... 1996 32.31 $2,109,272,000 ..... 1997 32.32 The 1996 appropriation includes $302,683,000 for 1995 and 32.33 $1,630,153,000 for 1996. 32.34 The 1997 appropriation includes $314,205,000 for 1996 and 32.35 $1,795,067,000 for 1997. 32.36 Sec. 40. [REPEALER.] 33.1 (a) Minnesota Statutes 1994, section 124A.27, is repealed. 33.2 (b) Minnesota Statutes 1994, sections 124.17, subdivision 33.3 1b; 124A.04, subdivision 1; 124A.22, subdivision 2a; 124A.225; 33.4 124A.29; and 124A.291, are repealed. 33.5 (c) Minnesota Statutes 1994, sections 124.26; 124A.28; and 33.6 124A.292, are repealed. 33.7 Sec. 41. [EFFECTIVE DATE.] 33.8 (a) Section 9 is effective July 1, 1996. 33.9 (b) Section 40, paragraph (a), is effective the day 33.10 following final enactment. 33.11 (c) Section 40, paragraph (b), is effective July 1, 1995. 33.12 (d) Section 40, paragraph (c), is effective July 1, 1996. 33.13 ARTICLE 2 33.14 TRANSPORTATION 33.15 Section 1. Minnesota Statutes 1994, section 120.064, 33.16 subdivision 15, is amended to read: 33.17 Subd. 15. [TRANSPORTATION.] (a) By July 1 of each year, an 33.18 outcome-based school shall notify the district in which the 33.19 school is located and the department of education if it will 33.20 provide transportation for pupils enrolled at the school for the 33.21 fiscal year. 33.22 (b) If an outcome-based school elects to provide 33.23 transportation for pupils, the transportation shall be provided 33.24 by the outcome-based school within the district in which the 33.25 outcome-based school is located. The state shall pay 33.26 transportation aid to the outcome-based school according to 33.27 section 124.248, subdivision 1a. 33.28 For pupils who reside outside the district in which the 33.29 outcome-based school is located, the outcome-based school is not 33.30 required to provide or pay for transportation between the 33.31 pupil's residence and the border of the district in which the 33.32 outcome-based school is located. A parent may be reimbursed by 33.33 the outcome-based school for costs of transportation from the 33.34 pupil's residence to the border of the district in which the 33.35 outcome-based school is located if the pupil is from a family 33.36 whose income is at or below the poverty level, as determined by 34.1 the federal government. The reimbursement may not exceed the 34.2 pupil's actual cost of transportation or 15 cents per mile 34.3 traveled, whichever is less. Reimbursement may not be paid for 34.4 more than 250 miles per week. 34.5 At the time a pupil enrolls in an outcome-based school, the 34.6 outcome-based school shall provide the parent or guardian with 34.7 information regarding the transportation. 34.8 (c) If an outcome-based school does not elect to provide 34.9 transportation, transportation for pupils enrolled atathe 34.10 school shall be provided by the district in which the school is 34.11 located, according to sections 120.062, subdivision 9, and 34.12 123.39, subdivision 6, for a pupil residing in the same district 34.13 in which the outcome-based school is located. Transportation 34.14 may be provided by the district in which the school is located, 34.15 according to sections 120.062, subdivision 9, and 123.39, 34.16 subdivision 6, for a pupil residing in a different district. 34.17 Sec. 2. Minnesota Statutes 1994, section 124.223, 34.18 subdivision 7, is amended to read: 34.19 Subd. 7. [FARIBAULT STATE ACADEMIESTRANSPORTATION TO AND 34.20 FROM BOARD AND LODGING FACILITIES.] State transportation aid is 34.21 authorized for transportation forresidentsresident pupils with 34.22 disabilities to and fromthe Minnesota state academy for the34.23deaf or the Minnesota state academy for the blindboard and 34.24 lodging facilities when the pupil is boarded and lodged for 34.25 educational purposes. 34.26 Sec. 3. Minnesota Statutes 1994, section 124.225, 34.27 subdivision 1, is amended to read: 34.28 Subdivision 1. [DEFINITIONS.] For purposes of this 34.29 section, the terms defined in this subdivision have the meanings 34.30 given to them. 34.31 (a) "FTE" means a full-time equivalent pupil whose 34.32 transportation is authorized for aid purposes by section 124.223. 34.33 (b) "Authorized cost for regular transportation" means the 34.34 sum of: 34.35 (1) all expenditures for transportation in the regular 34.36 category, as defined in paragraph (c), clause (1), for which aid 35.1 is authorized in section 124.223, plus 35.2 (2) an amount equal to one year's depreciation on the 35.3 district's school bus fleet and mobile units computed on a 35.4 straight line basis at the rate of 15 percent per year for 35.5 districts operating a program under section 121.585 for grades 1 35.6 to 12 for all students in the district and 12-1/2 percent per 35.7 year for other districts of the cost of the fleet, plus 35.8 (3) an amount equal to one year's depreciation on district 35.9 school buses reconditioned by the department of corrections 35.10 computed on a straight line basis at the rate of 33-1/3 percent 35.11 per year of the cost to the district of the reconditioning, plus 35.12 (4) an amount equal to one year's depreciation on the 35.13 district's type three school buses, as defined in section 35.14 169.01, subdivision 6, clause (5), which were purchased after 35.15 July 1, 1982, for authorized transportation of pupils, with the 35.16 prior approval of the commissioner, computed on a straight line 35.17 basis at the rate of 20 percent per year of the cost of the type 35.18 three school buses. 35.19 (c) "Transportation category" means a category of 35.20 transportation service provided to pupils as follows: 35.21 (1) Regular transportation is transportation services 35.22 provided during the regular school year under section 124.223, 35.23 subdivisions 1 and 2, excluding the following transportation 35.24 services provided under section 124.223, subdivision 1: 35.25 transportation between schools; noon transportation to and from 35.26 school for kindergarten pupils attending half-day sessions; 35.27 transportation of pupils to and from schools located outside 35.28 their normal attendance areas under the provisions of a plan for 35.29 desegregation mandated by the state board of education or under 35.30 court order; and transportation of elementary pupils to and from 35.31 school within a mobility zone. 35.32 (2) Nonregular transportation is transportation services 35.33 provided under section 124.223, subdivision 1, that are excluded 35.34 from the regular category and transportation services provided 35.35 under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 35.36 (3) Excess transportation is transportation to and from 36.1 school during the regular school year for secondary pupils 36.2 residing at least one mile but less than two miles from the 36.3 public school they could attend or from the nonpublic school 36.4 actually attended, and transportation to and from school for 36.5 pupils residing less than one mile from school who are 36.6 transported because of extraordinary traffic, drug, or crime 36.7 hazards. 36.8 (4) Desegregation transportation is transportation within 36.9 and outside of the district during the regular school year of 36.10 pupils to and from schools located outside their normal 36.11 attendance areas under a plan for desegregation mandated by the 36.12 state board or under court order. 36.13 (5) Handicapped transportation is transportation provided 36.14 under section 124.223, subdivision 4, for pupils with a 36.15 disability between home or a respite care facility and school or 36.16 other buildings where special instruction required by sections 36.17 120.17 and 120.1701 is provided. 36.18 (6) Late activity transportation is late transportation 36.19 home from school, between schools within a district, or between 36.20 schools in one or more districts that have an agreement under 36.21 sections 122.241 to 122.248, 122.535, 122.541, or 124.494, for 36.22 pupils involved in after-school activities. A district that 36.23 provides late transportation home from school for students 36.24 participating in athletic activities must provide late 36.25 transportation home from school for students participating in 36.26 any academic-related activities provided by the district. 36.27 (d) "Mobile unit" means a vehicle or trailer designed to 36.28 provide facilities for educational programs and services, 36.29 including diagnostic testing, guidance and counseling services, 36.30 and health services. A mobile unit located off nonpublic school 36.31 premises is a neutral site as defined in section 123.932, 36.32 subdivision 9. 36.33 (e) "Current year" means the school year for which aid will 36.34 be paid. 36.35 (f) "Base year" means the second school year preceding the 36.36 school year for which aid will be paid. 37.1 (g) "Base cost" means the ratio of: 37.2 (1) the sum of the authorized cost in the base year for 37.3 regular transportation as defined in paragraph (b) plus the 37.4 actual cost in the base year for excess transportation as 37.5 defined in paragraph (c); 37.6 (2) to the sum of the number of weighted FTE's in the 37.7 regular and excess categories in the base year. 37.8 (h) "Pupil weighting factor" for the excess transportation 37.9 category for a school district means the lesser of one, or the 37.10 result of the following computation: 37.11 (1) Divide the square mile area of the school district by 37.12 the number of FTE's in the regular and excess categories in the 37.13 base year. 37.14 (2) Raise the result in clause (1) to the one-fifth power. 37.15 (3) Divide four-tenths by the result in clause (2). 37.16 The pupil weighting factor for the regular transportation 37.17 category is one. 37.18 (i) "Weighted FTE's" means the number of FTE's in each 37.19 transportation category multiplied by the pupil weighting factor 37.20 for that category. 37.21 (j) "Sparsity index" for a school district means the 37.22 greater of .005 or the ratio of the square mile area of the 37.23 school district to the sum of the number of weighted FTE's by 37.24 the district in the regular and excess categories in the base 37.25 year. 37.26 (k) "Density index" for a school district means the greater 37.27 of one or the result obtained by subtracting the product of the 37.28 district's sparsity index times 20 from two. 37.29 (l) "Contract transportation index" for a school district 37.30 means the greater of one or the result of the following 37.31 computation: 37.32 (1) Multiply the district's sparsity index by 20. 37.33 (2) Select the lesser of one or the result in clause (1). 37.34 (3) Multiply the district's percentage of regular FTE's in 37.35 the current year using vehicles that are not owned by the school 37.36 district by the result in clause (2). 38.1 (m) "Adjusted predicted base cost" means the predicted base 38.2 cost as computed in subdivision 3a as adjusted under subdivision 38.3 7a. 38.4 (n) "Regular transportation allowance" means the adjusted 38.5 predicted base cost, inflated and adjusted under subdivision 7b. 38.6 Sec. 4. Minnesota Statutes 1994, section 124.225, 38.7 subdivision 3a, is amended to read: 38.8 Subd. 3a. [PREDICTED BASE COST.] A district's predicted 38.9 base cost equals the result of the following computation: 38.10 (a) Multiply the transportation formula allowance by the 38.11 district's sparsity index raised to the one-fourth power. The 38.12 transportation formula allowance is$447$450 for the 38.131991-19921993-1994 base year and$463$450 for the1992-199338.14 1994-1995 base year. 38.15 (b) Multiply the result in paragraph (a) by the district's 38.16 density index raised to the 35/100 power. 38.17 (c) Multiply the result in paragraph (b) by the district's 38.18 contract transportation index raised to the 1/20 power. 38.19 Sec. 5. Minnesota Statutes 1994, section 124.225, 38.20 subdivision 7b, is amended to read: 38.21 Subd. 7b. [INFLATION FACTORS.] (a) The adjusted predicted 38.22 base cost determined for a district under subdivision 7a for the 38.23 base year must be increased by2.35zero percent to determine 38.24 the district's regular transportation allowance for the 38.251993-19941995-1996 school year and by3.425zero percent to 38.26 determine the district's regular transportation allowance for 38.27 the1994-19951996-1997 school year, but. 38.28 (b) Notwithstanding paragraph (a), the regular 38.29 transportation allowance for a district for the 1995-1996 school 38.30 year and the 1996-1997 school year cannot be less than the 38.31 district's minimum regular transportation allowance according to 38.32 Minnesota Statutes 1990, section 124.225, subdivision 1, 38.33 paragraph (t). 38.34 (c) Notwithstanding paragraph (a), the regular 38.35 transportation allowance for a district for the 1997-1998 school 38.36 year and later cannot be less than the district's regular 39.1 transportation allowance for the 1996-1997 school year. 39.2 Sec. 6. Minnesota Statutes 1994, section 124.225, 39.3 subdivision 7d, is amended to read: 39.4 Subd. 7d. [TRANSPORTATION REVENUE.] Transportation revenue 39.5 for each district equals the sum of the district's regular 39.6 transportation revenue and the district's nonregular 39.7 transportation revenue. 39.8 (a) The regular transportation revenue for each district 39.9 equals the district's regular transportation allowance according 39.10 to subdivision 7b times the sum of the number of FTE's by the 39.11 district in the regular, desegregation, and handicapped 39.12 categories in the current school year. 39.13 (b) For the1992-1993 and later school years1995-1996 39.14 school year, the nonregular transportation revenue for each 39.15 district equals the lesser of the district's actual cost in the 39.16 current school year for nonregular transportation services or 39.17 the product of the district's actual cost in the base year for 39.18 nonregular transportation services as defined for the current 39.19 year in subdivision 1, paragraph (c), times the ratio of the 39.20 district's average daily membership for the current year to the 39.21 district's average daily membership for the base year according 39.22 to section 124.17, subdivision 2, times the nonregular 39.23 transportation inflation factor for the current year, minus the 39.24 amount of regular transportation revenue attributable to FTE's 39.25 in the desegregation and handicapped categories in the current 39.26 school year, plus the excess nonregular transportation revenue 39.27 for the current year according to subdivision 7e. The 39.28 nonregular transportation inflation factor is1.04351.0 for the 39.291993-19941995-1996 school year and1.034251.0 for the 39.301994-19951996-1997 school year. 39.31 (c) For the 1996-1997 school year, the nonregular 39.32 transportation revenue for each district equals the lesser of: 39.33 (1) the district's actual cost in the current school year 39.34 for nonregular transportation services, excess transportation 39.35 services, and late activity transportation services; or 39.36 (2) the product of the district's actual cost in the base 40.1 year for nonregular transportation services as defined for the 40.2 current year in subdivision 1, paragraph (c), 40.3 times the ratio of the district's average daily membership for 40.4 the current year to the district's average daily membership for 40.5 the base year according to section 124.17, subdivision 2, times 40.6 the nonregular transportation inflation factor for the current 40.7 year, minus the amount of regular transportation revenue 40.8 attributable to FTE's in the desegregation and handicapped 40.9 categories in the current school year, plus the excess 40.10 nonregular transportation revenue for the current year according 40.11 to subdivision 7e. 40.12 The nonregular transportation inflation factor is 1.0 for 40.13 the 1996-1997 school year. 40.14 (d) For the 1997-1998 school year and later, the nonregular 40.15 transportation revenue for each district equals the lesser of: 40.16 (1) the district's actual cost in the current school year 40.17 for nonregular transportation services, excess transportation 40.18 services, and late activity transportation services; or 40.19 (2) the product of the greater of: 40.20 (i) the district's actual cost in the base year for 40.21 nonregular transportation services as defined for the current 40.22 year in subdivision 1, paragraph (c); or 40.23 (ii) the lesser of the district's actual cost in the base 40.24 year for nonregular transportation services, excess 40.25 transportation services, and late activity transportation 40.26 services or the district's actual cost in the 1994-1995 school 40.27 year for nonregular transportation services, 40.28 times the ratio of the district's average daily membership for 40.29 the current year to the district's average daily membership for 40.30 the base year according to section 124.17, subdivision 2, times 40.31 the nonregular transportation inflation factor for the current 40.32 year, minus the amount of regular transportation revenue 40.33 attributable to FTE's in the desegregation and handicapped 40.34 categories in the current school year, plus the excess 40.35 nonregular transportation revenue for the current year according 40.36 to subdivision 7e. 41.1 The nonregular transportation inflation factor is 1.0 for 41.2 the 1997-1998 and later school years. 41.3 Sec. 7. Minnesota Statutes 1994, section 124.225, 41.4 subdivision 7e, is amended to read: 41.5 Subd. 7e. [EXCESS NONREGULAR TRANSPORTATION REVENUE.] A 41.6 district's excess nonregular transportation revenue for 41.71992-19931995-1996 and later school years equals an amount 41.8 equal to8060 percent of the difference between: 41.9 (1) the district's actual cost in the current year for 41.10 nonregular transportation services as defined for the current 41.11 year in subdivision 1, paragraph (c), and 41.12 (2) the product of the district's actual cost in the base 41.13 year for nonregular transportation services as defined for the 41.14 current year in subdivision 1, paragraph (c), times the 41.15 nonregular transportation inflation factor for the current year, 41.16 times the ratio of the district's average daily membership for 41.17 the current year to the district's average daily membership for 41.18 the base year. 41.19 Sec. 8. Minnesota Statutes 1994, section 124.225, 41.20 subdivision 8a, is amended to read: 41.21 Subd. 8a. [TRANSPORTATION AID.] (a) A district's 41.22 transportation aid equals the product of: 41.23 (1) the difference between the transportation revenue and 41.24 the sum of: 41.25 (i) the maximum basic transportation levy for that school 41.26 year under section275.125124.226, subdivision51, plus 41.27 (ii) the maximum nonregular transportation levy for that 41.28 school year under section 124.226, subdivision 4, plus 41.29 (iii) the contracted services aid reduction under 41.30 subdivision 8k, 41.31 (2) times the ratio of the sum of the actual amounts levied 41.32 under section 124.226, subdivisions 1 and 4, to the sum of the 41.33 permitted maximum levies under section 124.226, subdivisions 1 41.34 and 4. 41.35 (b) If the total appropriation for transportation aid for 41.36 any fiscal year is insufficient to pay all districts the full 42.1 amount of aid earned, the department of education shall reduce 42.2 each district's aid in proportion to the number of resident 42.3 pupils in average daily membership in the district to the state 42.4 total average daily membership, and shall reduce the 42.5 transportation levy of off-formula districts in the same 42.6 proportion. 42.7 Sec. 9. Minnesota Statutes 1994, section 124.226, 42.8 subdivision 1, is amended to read: 42.9 Subdivision 1. [BASIC TRANSPORTATION.] Each year, a school 42.10 district may levy for school transportation services an amount 42.11 not to exceed the amount raised by the basic transportation tax 42.12 rate times the adjusted net tax capacity of the district for the 42.13 preceding year. The commissioner of education shall establish 42.14 the basic transportation tax rate by July 1 of each year for 42.15 levies payable in the following year. The basic transportation 42.16 tax rate shall be a rate, rounded up to the nearest hundredth of 42.17 a percent, that, when applied to the adjusted net tax capacity 42.18 of taxable property for all districts, raises the amount 42.19 specified for basic transportation inthis subdivisionsection 42.20 124A.231.The basic transportation tax rate for transportation42.21shall be the rate that raises $64,300,000 for fiscal year 199342.22and $68,000,000 for fiscal year 1994 and subsequent fiscal42.23years.The basic transportation tax rate certified by the 42.24 commissioner of education must not be changed due to changes or 42.25 corrections made to a district's adjusted net tax capacity after 42.26 the tax rate has been certified. 42.27 Sec. 10. Minnesota Statutes 1994, section 124.226, 42.28 subdivision 3, is amended to read: 42.29 Subd. 3. [OFF-FORMULA ADJUSTMENT.] In a district if the 42.30 basic transportation levy under subdivision 1 attributable to 42.31 that fiscal year is more than the difference between (1) the 42.32 district's transportation revenue under section 124.225, 42.33 subdivision 7d, and (2) the sum of the district's maximum 42.34 nonregular levy under subdivision 4 and the district's 42.35 contracted services aid reduction under section 124.225, 42.36 subdivision 8k, and the amount of any reduction due to 43.1 insufficient appropriation under section 124.225, subdivision 43.2 8a, the district's transportation levy inthe second year43.3followingeach fiscal year must be reduced by the difference 43.4 between the amount of the excess and the amount of the aid 43.5 reduction for the same fiscal year according to subdivision 3a. 43.6 Sec. 11. Minnesota Statutes 1994, section 124.226, 43.7 subdivision 4, is amended to read: 43.8 Subd. 4. [NONREGULAR TRANSPORTATION.] A school district 43.9 may also make a levy for unreimbursed nonregular transportation 43.10 costs pursuant to this subdivision. The amount of the levy 43.11 shall be the result of the following computation: 43.12 (a) multiply 43.13 (1) the amount of the district's nonregular transportation 43.14 revenue under section 124.225, subdivision 7d, that is more than 43.15 the product of$60$65 times the district's average daily 43.16 membership, by 43.17 (2) 50 percent; 43.18 (b) subtract the result in clause (a) from the district's 43.19 total nonregular transportation revenue; 43.20 (c) multiply the result in clause (b) by the lesser of one 43.21 or the ratio of (i) the quotient derived by dividing the 43.22 adjusted net tax capacity of the district for the year before 43.23 the year the levy is certified by the average daily membership 43.24 in the district for the school year to which the levy is 43.25 attributable, to (ii) $8,000. 43.26 Sec. 12. Minnesota Statutes 1994, section 124.226, 43.27 subdivision 5, is amended to read: 43.28 Subd. 5. [EXCESS TRANSPORTATION.] A school district may 43.29make alevy for excess transportation costsaccording to this43.30subdivision. The amount of the levy shall be the result of the43.31following computationin an amount equal to the sum of: 43.32 (a)Multiply the lesser of (1) the regular transportation43.33allowance for the fiscal year to which the levy is attributable,43.34or (2) the base cost for the fiscal year to which the levy is43.35attributable, by the number of weighted FTE pupils transported43.36in the excess category in the district in the current school44.1year.the amount of fees waived for excess transportation 44.2 services provided to pupils eligible for free or reduced price 44.3 lunches; and 44.4 (b)Add to the result in paragraph (a)the actual cost in 44.5 the fiscal year to which the levy is attributable of adult 44.6 crossing guards and other related services that are necessary 44.7 because of extraordinary traffic, drug, or crime hazards. 44.8 Sec. 13. Minnesota Statutes 1994, section 124.248, is 44.9 amended by adding a subdivision to read: 44.10 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 44.11 shall be paid to an outcome-based school that provides 44.12 transportation services according to section 120.064, 44.13 subdivision 15, as though it were a school district. 44.14 Transportation aid shall equal transportation revenue. 44.15 (a) For the first two years that an outcome-based school is 44.16 providing transportation services, the regular transportation 44.17 allowance for the outcome-based school shall be equal to the 44.18 regular transportation allowance for the school district in 44.19 which the charter school is located. For the third year of 44.20 transportation services and later fiscal years, the predicted 44.21 base cost for the outcome-based school shall be equal to the 44.22 predicted base cost for the school district in which the 44.23 outcome-based school is located. 44.24 (b) For the first two years that an outcome-based school is 44.25 providing transportation services, the nonregular transportation 44.26 revenue equals the outcome-based school's actual cost in the 44.27 current school year for nonregular transportation services, 44.28 minus the amount of regular transportation revenue attributable 44.29 to FTE's in the handicapped category in the current school 44.30 year. For the third year of transportation services and later 44.31 fiscal years, the nonregular transportation revenue shall be 44.32 computed according to section 124.225, subdivision 7d, paragraph 44.33 (b). 44.34 Sec. 14. [APPROPRIATIONS.] 44.35 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 44.36 indicated in this section are appropriated from the general fund 45.1 to the department of education for the fiscal years designated. 45.2 Subd. 2. [TRANSPORTATION AID.] For transportation aid 45.3 according to Minnesota Statutes, section 124.225: 45.4 $143,862,000 ..... 1996 45.5 $151,004,000 ..... 1997 45.6 The 1996 appropriation includes $21,275,000 for 1995 and 45.7 $122,587,000 for 1996. 45.8 The 1997 appropriation includes $21,632,000 for 1996 and 45.9 $129,372,000 for 1997. 45.10 Subd. 3. [TRANSPORTATION AID FOR POST-SECONDARY ENROLLMENT 45.11 OPTIONS.] For transportation of pupils attending post-secondary 45.12 institutions according to Minnesota Statutes, section 123.3514: 45.13 $72,000 ..... 1996 45.14 $80,000 ..... 1997 45.15 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 45.16 transportation of pupils attending nonresident districts 45.17 according to Minnesota Statutes, section 120.0621: 45.18 $20,000 ..... 1996 45.19 $22,000 ..... 1997 45.20 Subd. 5. [TRANSFER AUTHORITY.] If the appropriation in 45.21 subdivision 3 or 4 for either year exceeds the amount needed to 45.22 pay the state's obligation for that year under that subdivision, 45.23 the excess amount may be used to make payments for that year 45.24 under the other subdivision. 45.25 Subd. 6. [TRANSPORTATION SAFETY.] For student 45.26 transportation safety aid according to Minnesota Statutes, 45.27 section 124.225, subdivision 8m: 45.28 $2,496,000 ..... 1996 45.29 $2,586,000 ..... 1997 45.30 The 1996 appropriation includes $371,000 for 1995 and 45.31 $2,125,000 for 1996. 45.32 The 1997 appropriation includes $375,000 for 1996 and 45.33 $2,211,000 for 1997. 45.34 Sec. 15. [REPEALER.] 45.35 (a) Minnesota Statutes 1994, section 124.226, subdivision 45.36 2, is repealed. 46.1 (b) Minnesota Statutes 1994, section 124.226, subdivision 46.2 9, is repealed. 46.3 Sec. 16. [EFFECTIVE DATE.] 46.4 (a) Section 10 is effective beginning with taxes payable in 46.5 1996 for fiscal year 1997. 46.6 (b) Section 15, paragraph (a), is effective July 1, 1995. 46.7 (c) Section 15, paragraph (b), is effective beginning with 46.8 taxes payable in 1996. 46.9 ARTICLE 3 46.10 SPECIAL PROGRAMS 46.11 Section 1. Minnesota Statutes 1994, section 124.273, is 46.12 amended by adding a subdivision to read: 46.13 Subd. 1c. [FISCAL YEAR 1996 REVENUE.] A district's limited 46.14 English proficiency programs revenue for fiscal year 1996 equals 46.15 the product of: 46.16 (1) the district's revenue for limited English proficiency 46.17 programs for fiscal year 1995 under this section and section 46.18 124.321, times 46.19 (2) the ratio of: 46.20 (i) the greater of 20 or the number of pupils of limited 46.21 English proficiency enrolled in the district during fiscal year 46.22 1996 to 46.23 (ii) the great of 20 or the number of pupils of limited 46.24 English proficiency enrolled in the district during fiscal year 46.25 1995. 46.26 Sec. 2. Minnesota Statutes 1994, section 124.273, is 46.27 amended by adding a subdivision to read: 46.28 Subd. 1d. [FISCAL YEAR 1996 AID.] A district's limited 46.29 English proficiency aid for fiscal year 1996 equals 60 percent 46.30 of the district's limited English proficiency revenue. 46.31 Sec. 3. Minnesota Statutes 1994, section 124.311, 46.32 subdivision 5, is amended to read: 46.33 Subd. 5. [REVENUE AMOUNT.] Assurance of mastery revenue is 46.34 the sum of state and district money. The sum may equal up to 46.35 $45 for fiscal year1991 and thereafter1996 times the number of 46.36 actual pupil units in kindergarten through grade 8 in the 47.1 district. The district shall determine the amount of money it 47.2 will provide and the state shall provide an equal amount of 47.3 money. 47.4 Sec. 4. [124.312] [ASSURANCE OF MASTERY PROGRAMS.] 47.5 Subdivision 1. [INSTRUCTION IN REGULAR CLASSROOM.] A 47.6 school district may have a policy adopted according to section 47.7 126.67, subdivision 3a, that identifies the direct instructional 47.8 services to be used to assure that individual pupils master the 47.9 learner outcomes in communications and mathematics. 47.10 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 47.11 services through an assurance of mastery program if the pupil 47.12 has not demonstrated mastery of learner outcomes in 47.13 communications or mathematics, or both, after receiving 47.14 instruction that was designed to enable the pupil to master the 47.15 learner outcomes in a regular classroom setting. To determine 47.16 pupil eligibility, a district must use the learner outcomes and 47.17 the evaluation process, adopted by the school board under 47.18 section 126.666, subdivision 1, paragraph (a), clauses (2) and 47.19 (3). 47.20 Subd. 3. [ELIGIBLE SERVICES.] Assurance of mastery 47.21 programs may provide direct instructional services to an 47.22 eligible pupil, or group of eligible pupils, in accordance with 47.23 the conditions in paragraphs (a) to (d). 47.24 (a) Instruction may be provided at one or more grade levels 47.25 from kindergarten through grade 8. If an assessment of pupils' 47.26 needs within a district demonstrates that the eligible pupils in 47.27 kindergarten through grade 8 are being appropriately served, a 47.28 district may serve eligible pupils in grades 9 through 12. 47.29 (b) Instruction must be provided in the usual and customary 47.30 classroom of the eligible pupil. 47.31 (c) Instruction must be provided under the supervision of 47.32 the eligible pupil's regular classroom teacher. Instruction may 47.33 be provided by the eligible pupil's classroom teacher, by 47.34 another teacher, by a team of teachers, or by an education 47.35 assistant or aide. A special education teacher may provide 47.36 instruction, but instruction that is provided under this section 48.1 is not eligible for aid under section 124.32. 48.2 (d) The instruction that is provided must differ from the 48.3 initial instruction the pupil received in the regular classroom 48.4 setting. The instruction may differ by presenting different 48.5 curriculum than was initially presented in the regular 48.6 classroom, or by presenting the same curriculum: 48.7 (1) at a different rate or in a different sequence than it 48.8 was initially presented; 48.9 (2) using different teaching methods or techniques than 48.10 were used initially; or 48.11 (3) using different instructional materials than were used 48.12 initially. 48.13 Sec. 5. Minnesota Statutes 1994, section 124.32, 48.14 subdivision 10, is amended to read: 48.15 Subd. 10. [SUMMER SCHOOL.]The state shall pay aid for48.16summer school programs for children with a disability on the48.17basis of subdivisions 1b, 1d, and 5 for the current school48.18year. The state shall also pay to the Minnesota state academy48.19for the deaf or the Minnesota state academy for the blind a part48.20of the salary of each instructional aide assigned to a child48.21attending the academy, if that aide is required by the child's48.22individual education plan.By March 15 of each year, districts 48.23 shall submit separate applications for program and budget 48.24 approval for summer school programs. The review of these 48.25 applications shall be as provided in subdivision 7. By May 1 of 48.26 each year, the commissioner shall approve, disapprove or modify 48.27 the applications and notify the districts of the action and of 48.28 the estimated amount of aid for the summer school programs. 48.29 Sec. 6. [124.3201] [SPECIAL EDUCATION REVENUE.] 48.30 Subdivision 1. [DEFINITIONS] For the purposes of this 48.31 section and sections 124.3202 and 124.321, the definitions in 48.32 this subdivision apply. 48.33 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 48.34 Base year for later fiscal years means the second fiscal year 48.35 preceding the fiscal year for which aid will be paid. 48.36 (b) "Basic revenue" has the meaning given it in section 49.1 124A.22, subdivision 2. For the purposes of computing basic 49.2 revenue pursuant to this section, each child with a disability 49.3 shall be counted as prescribed in section 124.17, subdivision 1. 49.4 (c) "Essential personnel" means teachers, related services, 49.5 and support services staff providing direct services to students. 49.6 (d) "Average daily membership" has the meaning given it in 49.7 section 124.17. 49.8 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] The special 49.9 education base revenue equals the sum of the following amounts, 49.10 computed using base year data: 49.11 (1) 68 percent of the salary of each essential person 49.12 employed in the district's program for children with a 49.13 disability during the regular school year, whether the person is 49.14 employed by one or more districts; 49.15 (2) for the Minnesota state academy for the deaf or the 49.16 Minnesota state academy for the blind, 68 percent of the salary 49.17 of each instructional aide assigned to a child attending the 49.18 academy, if that aide is required by the child's individual 49.19 education plan; 49.20 (3) for special instruction and services provided to any 49.21 pupil by contracting with public, private, or voluntary agencies 49.22 other than school districts, in place of special instruction and 49.23 services provided by the district, 52 percent of the difference 49.24 between the amount of the contract and the basic revenue of the 49.25 district for that pupil for the fraction of the school day the 49.26 pupil receives services under the contract; 49.27 (4) for special instruction and services provided to any 49.28 pupil by contracting for services with public, private, or 49.29 voluntary agencies other than school districts, that are 49.30 supplementary to a full educational program provided by the 49.31 school district, 52 percent of the amount of the contract for 49.32 that pupil; and 49.33 (5) for supplies and equipment purchased or rented for use 49.34 in the instruction of children with a disability an amount equal 49.35 to 47 percent of the sum actually expended by the district but 49.36 not to exceed an average of $47 in any one school year for each 50.1 child with a disability receiving instruction. 50.2 Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 50.3 fiscal year 1996 and later, a district's adjusted special 50.4 education base revenue equals the district's special education 50.5 base revenue times the ratio of the district's average daily 50.6 membership for the current school year to the district's average 50.7 daily membership for the base year. 50.8 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 50.9 state total special education revenue for fiscal year 1996 50.10 equals $321,838,000. The state total special education revenue 50.11 for fiscal year 1997 equals $327,599,000. The state total 50.12 special education revenue for later fiscal years equals the 50.13 state total special education revenue for fiscal year 1997 times 50.14 the ratio of the state total average daily membership for the 50.15 current fiscal year to the state total average daily membership 50.16 for fiscal year 1997. 50.17 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] A 50.18 school district's special education revenue for fiscal year 1996 50.19 and later equals the state total special education revenue times 50.20 the ratio of the district's adjusted special education base 50.21 revenue to the state total adjusted special education base 50.22 revenue. 50.23 Subd. 6. [SPECIAL EDUCATION AID.] A school district's 50.24 special education aid for fiscal year 1996 and later equals 60 50.25 percent of the district's special education revenue. 50.26 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 50.27 INTERMEDIATES.] For the purposes of this section and section 50.28 124.321, a special education cooperative or an intermediate 50.29 district shall allocate its approved expenditures for special 50.30 education programs among participating school districts. 50.31 Special education aid for services provided by a cooperative or 50.32 intermediate district shall be paid to the participating school 50.33 districts. 50.34 Sec. 7. [124.3202] [SPECIAL EDUCATION SUMMER PROGRAM 50.35 REVENUE.] 50.36 Subdivision 1. [SUMMER PROGRAM BASE REVENUE.] The summer 51.1 program base revenue equals the sum of the following amounts, 51.2 computed using base year data: 51.3 (1) 68 percent of the summer program salary of each 51.4 essential person employed in the district's program for children 51.5 with a disability, whether the person is employed by one or more 51.6 districts; 51.7 (2) for the Minnesota state academy for the deaf or the 51.8 Minnesota state academy for the blind, 68 percent of the summer 51.9 program salary of each instructional aide assigned to a child 51.10 attending the academy, if that aide is required by the child's 51.11 individual education plan; 51.12 (3) for special instruction and services provided to any 51.13 pupil by contracting with public, private, or voluntary agencies 51.14 other than school districts, in place of special instruction and 51.15 services provided by the district, 52 percent of the difference 51.16 between the amount of the contract for the summer program and 51.17 the basic revenue of the district for that pupil for the 51.18 fraction of the school day the pupil receives services under the 51.19 contract; and 51.20 (4) for special instruction and services provided to any 51.21 pupil by contracting for services with public, private, or 51.22 voluntary agencies other than school districts, that are 51.23 supplementary to a full educational program provided by the 51.24 school district, 52 percent of the amount of the summer program 51.25 contract for that pupil. 51.26 Subd. 2. [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 51.27 fiscal year 1996 and later, a district's adjusted summer program 51.28 base revenue equals the district's summer program base revenue 51.29 times the ratio of the district's average daily membership for 51.30 the current school year to the district's average daily 51.31 membership for the base year. 51.32 Subd. 3. [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 51.33 total summer program revenue for fiscal year 1996 equals 51.34 $7,040,000. The state total summer program revenue for fiscal 51.35 year 1997 equals $7,166,000. The state total summer program 51.36 revenue for later fiscal years equals the state total summer 52.1 program revenue for fiscal year 1997 times the ratio of the 52.2 state total average daily membership for the current fiscal year 52.3 to the state total average daily membership for fiscal year 1997. 52.4 Subd. 4. [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] A 52.5 school district's summer program revenue for fiscal year 1996 52.6 and later equals the state total summer program revenue times 52.7 the ratio of the district's adjusted summer program base revenue 52.8 to the state total adjusted summer program base revenue. 52.9 Subd. 5. [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 52.10 district's special education summer program aid for fiscal year 52.11 1996 and later equals 60 percent of the district's summer 52.12 program revenue. 52.13 Subd. 6. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 52.14 INTERMEDIATES.] For the purposes of this section and section 52.15 124.321, a special education cooperative or an intermediate 52.16 district shall allocate its approved expenditures for special 52.17 education programs among participating school districts. 52.18 Special education summer program aid for services provided by a 52.19 cooperative or intermediate district shall be paid to the 52.20 participating school districts. 52.21 Sec. 8. Minnesota Statutes 1994, section 124.321, 52.22 subdivision 1, is amended to read: 52.23 Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal 52.24 year 1996, special education levy equalization revenue for a 52.25 school district, excluding an intermediate school district, 52.26 equals the sum of the following amounts: 52.27(1) 68 percent of the salaries paid to essential personnel52.28in that district minus the amount of state aid and any federal52.29aid, if applicable, paid to that district for salaries of these52.30essential personnel under section 124.32, subdivisions 1b and52.3110, for the year to which the levy is attributable, plus52.32(2) 68 percent of the salaries paid to essential personnel52.33in that district minus the amount of state aid and any federal52.34aid, if applicable, paid to that district for salaries of those52.35essential personnel under section 124.574, subdivision 2b, for52.36the year to which the levy is attributable, plus53.1(3) 68 percent of the salaries paid to limited English53.2proficiency program teachers in that district minus the amount53.3of state aid and any federal aid, if applicable, paid to that53.4district for salaries of these teachers under section 124.273,53.5subdivision 1b, for the year to which the levy is attributable,53.6plus53.7(4) the alternative delivery levy revenue determined53.8according to section 124.322, subdivision 4, plus53.9(5) the amount allocated to the district by special53.10education cooperatives or intermediate districts in which it53.11participates according to subdivision 2.53.12A district that receives alternative delivery levy revenue53.13according to section 124.322, subdivision 4, shall not receive53.14levy equalization revenue under clause (1) or subdivision 2,53.15clause (1), for the same fiscal year.53.16 (1) 40 percent of the district's special education revenue 53.17 under section 124.3201, plus 53.18 (2) 40 percent of the district's special education summer 53.19 program revenue under section 124.3202, plus 53.20 (3) 40 percent of the district's secondary vocational 53.21 education for children with a disability revenue under section 53.22 124.574, plus 53.23 (4) 40 percent of the district's limited English 53.24 proficiency programs revenue under section 124.273. 53.25 (b) For fiscal year 1997 and later, special education levy 53.26 equalization revenue for a school district, excluding an 53.27 intermediate school district, equals the sum of the following 53.28 amounts: 53.29 (1) 40 percent of the district's special education revenue 53.30 under section 124.3201, plus 53.31 (2) 40 percent of the district's special education summer 53.32 program revenue under section 124.3202, plus 53.33 (3) 40 percent of the district's secondary vocational 53.34 education for children with a disability revenue under section 53.35 124.574. 53.36 Sec. 9. Minnesota Statutes 1994, section 124.321, 54.1 subdivision 2, is amended to read: 54.2 Subd. 2. [REVENUE ALLOCATION FROMCOOPERATIVES AND54.3INTERMEDIATE DISTRICTSSTATE ACADEMIES.] (a)For purposes of54.4this section, a special education cooperative or an intermediate54.5district shall allocate to participating school districts the54.6sum of the following amounts:54.7(1) 68 percent of the salaries paid to essential personnel54.8in that cooperative or intermediate district minus the amount of54.9state aid and any federal aid, if applicable, paid to that54.10cooperative or intermediate district for salaries of these54.11essential personnel under section 124.32, subdivisions 1b and54.1210, for the year to which the levy is attributable, plus54.13(2) 68 percent of the salaries paid to essential personnel54.14in that district minus the amount of state aid and any federal54.15aid, if applicable, paid to that district for salaries of those54.16essential personnel under section 124.574, subdivision 2b, for54.17the year to which the levy is attributable, plus54.18(3) 68 percent of the salaries paid to limited English54.19proficiency program teachers in that cooperative or intermediate54.20district minus the amount of state aid and any federal aid, if54.21applicable, paid to that cooperative or intermediate district54.22for salaries of these teachers under section 124.273,54.23subdivision 1b, for the year to which the levy is attributable.54.24(b) A special education cooperative or an intermediate54.25district that allocates amounts to participating school54.26districts under this subdivision must report the amounts54.27allocated to the department of education.54.28(c)For purposes of thissubdivisionsection, the Minnesota 54.29 state academy for the deaf or the Minnesota state academy for 54.30 the blind each year shall allocate an amount equal to68 percent54.31of salaries paid to instructional aides in either academy minus54.32the amount of state aid and any federal aid, if applicable, paid54.33to either academy for salaries of these instructional aides54.34under sections 124.32, subdivisions 1b and 10,40 percent of 54.35 their special education revenue under section 124.3201 and their 54.36 special education summer program revenue under section 124.3202 55.1 for the year to each school district that assigns a child with 55.2 an individual education plan requiring an instructional aide to 55.3 attend either academy. The school districts that assign a child 55.4 who requires an instructional aide may make a levy in the amount 55.5 of the costs allocated to them by either academy. 55.6(d)(b) When the Minnesota state academy for the deaf or 55.7 the Minnesota state academy for the blind allocatesunreimbursed55.8portions of salaries of instructional aidesrevenue among school 55.9 districts that assign a child who requires an instructional 55.10 aide, for purposes of the districts making a levy under this 55.11 subdivision, the academy shall provide information to the 55.12 department of education on the amount ofunreimbursed costs of55.13salariesrevenue it allocated to the school districts that 55.14 assign a child who requires an instructional aide. 55.15 Sec. 10. Minnesota Statutes 1994, section 124.322, is 55.16 amended to read: 55.17 124.322 [ALTERNATIVE DELIVERY BASE REVENUE ADJUSTMENT.] 55.18 Subdivision 1. [ELIGIBILITY.] A district is eligible 55.19 for an alternative delivery base revenue adjustment if the 55.20 commissioner of education has approved the application of the 55.21 district according to section 120.173. 55.22 Subd. 1a. [DEFINITIONSBASE REVENUE ADJUSTMENT.]In this55.23section, the definitions in this subdivision apply.55.24(a) "Base revenue" means the following:55.25(1) for the first fiscal year after approval of the55.26district's application, base revenue means the sum of the55.27district's revenue for the preceding fiscal year for its special55.28education program under sections 124.32, subdivisions 1b, 1d, 2,55.295, and 10, and 124.321, subdivision 1;55.30(2) for the second fiscal year after approval of a55.31district's application, base revenue means the sum of the55.32district's revenue for the second prior fiscal year for its55.33special education program under sections 124.32, subdivisions55.341b, 1d, 2, 5, and 10, and 124.321, subdivision 1; and55.35(3)For the third fiscal year after approval of a 55.36 district's application, and thereafter, the special education 56.1 base revenue under section 124.3201, subdivision 1, and the 56.2 summer program base revenuemeans the sum of the revenue a56.3district would have been entitled to in the second prior fiscal56.4year for its special education program under sections 124.32,56.5subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision56.61,under section 124.3202, subdivision 1, shall be computed 56.7 based on activities defined as reimbursable under state board 56.8 rules for special education and nonspecial education students, 56.9 and additional activities as detailed and approved by the 56.10 commissioner of education. 56.11(b) "Base aid" means the following:56.12(1) for the first fiscal year after approval of a56.13district's application, base aid means the sum of the district's56.14gross aid for the preceding fiscal year for its special56.15education program under section 124.32, subdivisions 1b, 1d, 2,56.165, and 10;56.17(2) for the second fiscal year after approval of a56.18district's application, base aid means the sum of the district's56.19gross aid for the second prior fiscal year for its special56.20education program under section 124.32, subdivisions 1b, 1d, 2,56.215, and 10; and56.22(3) for the third fiscal year after approval of a56.23district's application and thereafter, base aid means the sum of56.24the gross aid the district would have been entitled to in the56.25second prior fiscal year for its special education program under56.26section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on56.27activities defined as reimbursable under state board of56.28education rules for special education and nonspecial education56.29students, and additional activities as detailed and approved by56.30the commissioner of education in the application plan.56.31(c) Notwithstanding paragraphs (a) and (b), base revenue56.32and base aid for 1995 and later fiscal years must not include56.33revenue and aid under section 124.32, subdivision 5.56.34(d) "Alternative delivery revenue inflator" means:56.35(1) for the first fiscal year after approval of a56.36district's application, the greater of 1.017 or the ratio of (i)57.1the statewide average special education revenue under sections57.2124.32 and 124.321 per pupil in average daily membership for the57.3current fiscal year, to (ii) the statewide average special57.4education revenue per pupil in average daily membership for the57.5previous fiscal year.57.6(2) for the second and later fiscal years, the greater of57.71.034 or the ratio of (i) the statewide average special57.8education revenue under sections 124.32 and 124.321 per pupil in57.9average daily membership for the current fiscal year, to (ii)57.10the statewide average special education revenue per pupil in57.11average daily membership for the second prior fiscal year.57.12(e) The commissioner of education shall adjust each57.13district's base revenue and base aid to reflect any changes in57.14special education services required by rule or statute.57.15Subd. 2. [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the57.16first fiscal year after approval of an application, a district's57.17alternative delivery revenue equals its base revenue multiplied57.18by the product of the alternative delivery revenue inflator57.19times the ratio of the district's average daily membership for57.20the current fiscal year to the district's average daily57.21membership for the immediately preceding fiscal year. For the57.22second and later fiscal years a district's alternative delivery57.23revenue equals its base revenue multiplied by the product of the57.24alternative delivery revenue inflator times the ratio of the57.25district's average daily membership for the current fiscal year57.26to the district's average daily membership for the second57.27preceding fiscal year.57.28Subd. 3. [ALTERNATIVE DELIVERY AID.] For the first fiscal57.29year after approval of an application, a district's alternative57.30delivery aid equals its base aid multiplied by the product of57.311.017 times the ratio of the district's average daily membership57.32for the current fiscal year to the district's average daily57.33membership for the preceding fiscal year. For the second and57.34later fiscal years a district's alternative delivery aid equals57.35its base aid multiplied by the product of 1.034 times the ratio57.36of the district's average daily membership for the current58.1fiscal year to the district's average daily membership for the58.2second preceding fiscal year. A district that receives aid58.3under this subdivision shall not receive aid under section58.4124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal58.5year.58.6Subd. 4. [ALTERNATIVE DELIVERY LEVY REVENUE.] A district58.7shall receive alternative delivery levy revenue equal to the58.8difference between the alternative delivery revenue and the58.9alternative delivery aid. If the alternative delivery aid for a58.10district is prorated, the alternative delivery levy revenue58.11shall be increased by the amount not paid by the state due to58.12proration. The alternative delivery levy revenue shall be58.13included under section 124.321, subdivision 1, for purposes of58.14computing the special education levy under section 124.321,58.15subdivision 3, and the special education levy equalization aid58.16under section 124.321, subdivision 4.58.17 Subd. 5. [USE OF REVENUE.] Revenue underthis section58.18 sections 124.3201 and 124.3202 shall be used to implement the 58.19 approved program. 58.20 Sec. 11. Minnesota Statutes 1994, section 124.323, 58.21 subdivision 1, is amended to read: 58.22 Subdivision 1. [DEFINITIONS.] In this section, the 58.23 definitions in this subdivision apply. 58.24 (a) "Unreimbursed special education cost" means the sum of 58.25 the following: 58.26 (1) expenditures for teachers' salaries, contracted 58.27 services, supplies, and equipment eligible for revenue under 58.28 sections124.32, subdivisions 1b, 1d, 2, and 10, and 124.322,58.29subdivision 2124.3201, 124.3202, and 124.321; plus 58.30 (2) expenditures for tuition bills received under section 58.31 120.17; minus 58.32 (3) revenue for teachers' salaries, contracted services, 58.33 supplies, and equipment under sections124.32, subdivisions 1b,58.341d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322,58.35subdivision 2124.3201, 124.3202, and 124.321; minus 58.36 (4) tuition receipts under section 120.17. 59.1 (b) "General revenue" means the sum of the general 59.2 education revenue according to section 124A.22, subdivision 1, 59.3 plus the total referendum revenue according to section 124A.03, 59.4 subdivision 1e. 59.5 Sec. 12. Minnesota Statutes 1994, section 124.573, 59.6 subdivision 3, is amended to read: 59.7 Subd. 3. [COMPLIANCE WITH RULES.]Aid shall be paid under59.8this section only for services rendered or for costs incurred in59.9 A district that allocates learner improvement revenue to 59.10 secondary vocational education programs must use the revenue for 59.11 secondary vocational education programs approved by the 59.12 commissioner and operated in accordance with rules promulgated 59.13 by the state board.These rules shall provide minimum59.14student-staff ratios required for a secondary vocational59.15education program area to qualify for this aid. The rules must59.16not require the collection of data at the program or course59.17level to calculate secondary vocational aid.The rules shall 59.18 not require any minimum number of administrative staff, any 59.19 minimum period of coordination time or extended employment for 59.20 secondary vocational education personnel, or the availability of 59.21 vocational student activities or organizationsfor a secondary59.22vocational education program to qualify for this aid. The 59.23 requirement in these rules that program components be available 59.24 for a minimum number of hours shall not be construed to prevent 59.25 pupils from enrolling in secondary vocational education courses 59.26 on an exploratory basis for less than a full school year. The 59.27 state board shall not require a school district to offer more 59.28 than four credits or 560 hours of vocational education course 59.29 offerings in any school year. Rules relating to secondary 59.30 vocational education programs shall not incorporate the 59.31 provisions of the state plan for vocational education by 59.32 reference.This aid shall be paidLearner improvement revenue 59.33 allocated to this program shall be used only for services 59.34 rendered and for costs incurred by essential, licensed personnel 59.35 who meet the work experience requirements for licensure pursuant 59.36 to the rules of the state board. Licensed personnel means 60.1 persons holding a valid secondary vocational license issued by 60.2 the commissioner, except that when an average of five or fewer 60.3 secondary full-time equivalent students are enrolled per teacher 60.4 in an approved post-secondary program at intermediate district 60.5 No. 287, 916, or 917, licensed personnel means persons holding a 60.6 valid vocational license issued by the commissioner or the state 60.7 board for vocational technical education.Notwithstanding60.8section 124.15, the commissioner may modify or withdraw the60.9program or aid approval and withhold aid under this section60.10without proceeding under section 124.15 at any time. To do so,60.11the commissioner must determine that the program does not comply60.12with rules of the state board or that any facts concerning the60.13program or its budget differ from the facts in the district's60.14approved application.60.15 Sec. 13. Minnesota Statutes 1994, section 124.574, is 60.16 amended by adding a subdivision to read: 60.17 Subd. 2c. [DEFINITIONS.] For the purposes of this section 60.18 and section 124.321, the definitions in this subdivision apply. 60.19 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 60.20 Base year for later fiscal years means the second fiscal year 60.21 preceding the fiscal year for which aid will be paid. 60.22 (b) "Basic revenue" has the meaning given it in section 60.23 124A.22, subdivision 2. For the purposes of computing basic 60.24 revenue pursuant to this section, each child with a disability 60.25 shall be counted as prescribed in section 124.17, subdivision 1. 60.26 (c) "Average daily membership" has the meaning given it in 60.27 section 124.17. 60.28 Sec. 14. Minnesota Statutes 1994, section 124.574, is 60.29 amended by adding a subdivision to read: 60.30 Subd. 2d. [BASE REVENUE.] The secondary vocational 60.31 disabled program base revenue equals the sum of the following 60.32 amounts, computed using base year data: 60.33 (1) 68 percent of the salary of each essential licensed 60.34 person who provides direct instructional services to students, 60.35 employed during that fiscal year for services rendered in that 60.36 district's secondary vocational education programs for children 61.1 with a disability; 61.2 (2) 47 percent of the costs of necessary equipment for 61.3 secondary vocational education programs for children with a 61.4 disability; 61.5 (3) 47 percent of the costs of necessary travel between 61.6 instructional sites by secondary vocational education teachers 61.7 of children with a disability, but not including travel to and 61.8 from local, regional, district, state, or national vocational 61.9 student organization meetings; 61.10 (4) 47 percent of the costs of necessary supplies for 61.11 secondary vocational education programs for children with a 61.12 disability, but not to exceed an average of $47 in any one 61.13 school year for each child with a disability receiving these 61.14 services; 61.15 (5) for secondary vocational education programs for 61.16 children with disabilities provided by a contract approved by 61.17 the commissioner with public, private, or voluntary agencies 61.18 other than a Minnesota school district or cooperative center, in 61.19 place of programs provided by the district, 52 percent of the 61.20 difference between the amount of the contract and the basic 61.21 revenue of the district for that pupil for the fraction of the 61.22 school day the pupil receives services under the contract; 61.23 (6) for secondary vocational education programs for 61.24 children with disabilities provided by a contract approved by 61.25 the commissioner with public, private, or voluntary agencies 61.26 other than a Minnesota school district or cooperative center, 61.27 that are supplementary to a full educational program provided by 61.28 the school district, 52 percent of the amount of the contract; 61.29 and 61.30 (7) for a contract approved by the commissioner with 61.31 another Minnesota school district or cooperative center for 61.32 vocational evaluation services for children with a disability 61.33 for children that are not yet enrolled in grade 12, 52 percent 61.34 of the amount of the contract. 61.35 Sec. 15. Minnesota Statutes 1994, section 124.574, is 61.36 amended by adding a subdivision to read: 62.1 Subd. 2e. [ADJUSTED SECONDARY VOCATIONAL-DISABLED BASE 62.2 REVENUE.] For fiscal year 1996 and later, a district's adjusted 62.3 secondary vocational-disabled base revenue equals the district's 62.4 secondary vocational-disabled base revenue times the ratio of 62.5 the district's average daily membership for the current school 62.6 year to the district's average daily membership for the base 62.7 year. 62.8 Sec. 16. Minnesota Statutes 1994, section 124.574, is 62.9 amended by adding a subdivision to read: 62.10 Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 62.11 REVENUE.] The state total secondary vocational-disabled revenue 62.12 for fiscal year 1996 equals $7,582,000. The state total 62.13 secondary vocational-disabled revenue for fiscal year 1997 62.14 equals $7,718,000. The state total secondary 62.15 vocational-disabled revenue for later fiscal years equals the 62.16 state total secondary vocational-disabled revenue for fiscal 62.17 year 1997 times the ratio of the state total average daily 62.18 membership for the current fiscal year to the state total 62.19 average daily membership for fiscal year 1997. 62.20 Sec. 17. Minnesota Statutes 1994, section 124.574, is 62.21 amended by adding a subdivision to read: 62.22 Subd. 2g. [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 62.23 REVENUE.] A school district's secondary vocational-disabled 62.24 revenue for fiscal year 1996 and later equals the state total 62.25 secondary vocational-disabled revenue times the ratio of the 62.26 district's adjusted secondary vocational-disabled base revenue 62.27 to the state total adjusted secondary vocational-disabled base 62.28 revenue. 62.29 Sec. 18. Minnesota Statutes 1994, section 124.574, is 62.30 amended by adding a subdivision to read: 62.31 Subd. 2h. [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 62.32 AID.] A school district's secondary vocational-disabled aid for 62.33 fiscal year 1996 and later equals 60 percent of the district's 62.34 secondary vocational-disabled revenue. 62.35 Sec. 19. Minnesota Statutes 1994, section 124.574, 62.36 subdivision 9, is amended to read: 63.1 Subd. 9. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 63.2 INTERMEDIATE DISTRICTS.] For purposes of this section and 63.3 section 124.321, a cooperative center or an intermediate 63.4 district shall allocate its approved expenditures for secondary 63.5 vocational programs for children with a disability among 63.6 participating school districts. Aid for secondary vocational 63.7 programs for children with a disability for services provided by 63.8 a cooperative or intermediate district shall be paid to the 63.9 participating school districts. 63.10 Sec. 20. [APPROPRIATIONS.] 63.11 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 63.12 indicated in this section are appropriated from the general fund 63.13 or other named fund to the department of education for the 63.14 fiscal years designated. 63.15 Subd. 2. [SPECIAL EDUCATION AID.] For special education 63.16 aid according to Minnesota Statutes, section 124.32: 63.17 $192,368,000 ..... 1996 63.18 $196,041,000 ..... 1997 63.19 The 1996 appropriation includes $28,230,000 for 1995 and 63.20 $164,138,000 for 1996. 63.21 The 1997 appropriation includes $28,965,000 for 1996 and 63.22 $167,076,000 for 1997. 63.23 Subd. 3. [SPECIAL PUPIL AID.] For special education aid 63.24 according to Minnesota Statutes, section 124.32, subdivision 6, 63.25 for pupils with handicaps placed in residential facilities 63.26 within the district boundaries for whom no district of residence 63.27 can be determined: 63.28 $213,000 ..... 1996 63.29 $222,000 ..... 1997 63.30 If the appropriation for either year is insufficient, the 63.31 appropriation for the other year is available. If the 63.32 appropriations for both years are insufficient, the 63.33 appropriation for special education aid may be used to meet the 63.34 special pupil obligations. 63.35 Subd. 4. [SUMMER SPECIAL EDUCATION AID.] For special 63.36 education summer program aid according to Minnesota Statutes, 64.1 section 124.32, subdivision 10: 64.2 $4,224,000 ..... 1996 64.3 $4,300,000 ..... 1997 64.4 The 1996 appropriation is for 1995 summer programs. 64.5 The 1997 appropriation is for 1996 summer programs. 64.6 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 64.7 teacher travel for home-based services according to Minnesota 64.8 Statutes, section 124.32, subdivision 2b: 64.9 $77,000 ..... 1996 64.10 $80,000 ..... 1997 64.11 The 1996 appropriation includes $11,000 for 1995 and 64.12 $66,000 for 1996. 64.13 The 1997 appropriation includes $11,000 for 1996 and 64.14 $69,000 for 1997. 64.15 Subd. 6. [SPECIAL EDUCATION EXCESS COST AID.] For excess 64.16 cost aid: 64.17 $ 9,330,000 ..... 1996 64.18 $13,921,000 ..... 1997 64.19 The 1996 appropriation includes $980,000 for 1995 and 64.20 $8,350,000 for 1996. 64.21 The 1997 appropriation includes $1,473,000 for 1996 and 64.22 $12,448,000 for 1997. 64.23 Subd. 7. [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 64.24 For aid to educational programs for pupils of limited English 64.25 proficiency according to Minnesota Statutes, section 124.273: 64.26 $6,935,000 ..... 1996 64.27 $1,056,000 ..... 1997 64.28 The 1996 appropriation includes $945,000 for 1995 and 64.29 $5,990,000 for 1996. 64.30 The 1997 appropriation includes $1,056,000 for 1996 and $0 64.31 for 1997. 64.32 Subd. 8. [AMERICAN INDIAN POST-SECONDARY PREPARATION 64.33 GRANTS.] For American Indian post-secondary preparation grants 64.34 according to Minnesota Statutes, section 124.481: 64.35 $738,000 ..... 1996 64.36 $738,000 ..... 1997 65.1 Any balance in the first year does not cancel but is 65.2 available in the second year. 65.3 Subd. 9. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 65.4 For grants to American Indian language and culture education 65.5 programs according to Minnesota Statutes, section 126.54, 65.6 subdivision 1: 65.7 $515,000 ..... 1996 65.8 $502,000 ..... 1997 65.9 The 1996 appropriation includes $88,000 for 1995 and 65.10 $427,000 for 1996. 65.11 The 1997 appropriation includes $75,000 for 1996 and 65.12 $427,000 for 1997. 65.13 Any balance in the first year does not cancel but is 65.14 available in the second year. 65.15 Subd. 10. [SECONDARY VOCATIONAL; STUDENTS WITH 65.16 DISABILITIES.] For aid for secondary vocational education for 65.17 pupils with disabilities according to Minnesota Statutes, 65.18 section 124.574: 65.19 $4,457,000 ..... 1996 65.20 $4,619,000 ..... 1997 65.21 The 1996 appropriation includes $590,000 for 1995 and 65.22 $3,867,000 for 1996. 65.23 The 1997 appropriation includes $682,000 for 1996 and 65.24 $3,937,000 for 1997. 65.25 Subd. 11. [ASSURANCE OF MASTERY.] For assurance of mastery 65.26 aid according to Minnesota Statutes, section 124.312: 65.27 $10,959,000 ..... 1996 65.28 $ 1,596,000 ..... 1997 65.29 The 1996 appropriation includes $1,915,000 for 1995 and 65.30 $9,044,000 for 1996. 65.31 The 1997 appropriation includes $1,596,000 for 1996 and $0 65.32 for 1997. 65.33 Subd. 12. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 65.34 education levy equalization aid according to Minnesota Statutes, 65.35 section 124.321: 65.36 $17,884,000 ..... 1996 66.1 $17,575,000 ..... 1997 66.2 The 1996 appropriation includes $2,584,000 for 1995 and 66.3 $15,300,000 for 1996. 66.4 The 1997 appropriation includes $2,700,000 for 1996 and 66.5 $14,875,000 for 1997. 66.6 Subd. 13. [AMERICAN INDIAN SCHOLARSHIPS.] For American 66.7 Indian scholarships according to Minnesota Statutes, section 66.8 124.48: 66.9 $1,378,000 ..... 1996 66.10 $1,378,000 ..... 1997 66.11 Any unexpended balance remaining in the first year does not 66.12 cancel but is available in the second year. 66.13 Subd. 14. [AMERICAN INDIAN EDUCATION.] (a) For certain 66.14 American Indian education programs in school districts: 66.15 $152,000 ..... 1996 66.16 $148,000 ..... 1997 66.17 The 1996 appropriation includes $26,000 for 1995 and 66.18 $126,000 for 1996. 66.19 The 1997 appropriation includes $22,000 for 1996 and 66.20 $126,000 for 1997. 66.21 (b) These appropriations are available for expenditure with 66.22 the approval of the commissioner of the department of education. 66.23 (c) The commissioner must not approve the payment of any 66.24 amount to a school district or school under this subdivision 66.25 unless that school district or school is in compliance with all 66.26 applicable laws of this state. 66.27 (d) Up to the following amounts may be distributed to the 66.28 following schools and school districts for each fiscal year: 66.29 $45,900, Pine Point School; $8,800 to independent school 66.30 district No. 166, Cook county; $13,300 to independent school 66.31 district No. 432, Mahnomen; $11,800 to independent school 66.32 district No. 435, Waubun; $35,600 to independent school district 66.33 No. 707, Nett Lake; and $32,600 to independent school district 66.34 No. 38, Red Lake. These amounts must be spent only for the 66.35 benefit of American Indian pupils and to meet established state 66.36 educational standards or statewide requirements. 67.1 (e) Before a district or school can receive money under 67.2 this subdivision, the district or school must submit, to the 67.3 commissioner, evidence that it has complied with the uniform 67.4 financial accounting and reporting standards act, Minnesota 67.5 Statutes, sections 121.904 to 121.917. 67.6 Subd. 15. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 67.7 joint grants to assist Indian people to become teachers: 67.8 $163,000 ..... 1996 67.9 $163,000 ..... 1997 67.10 (b) Up to $61,000 each year is for a joint grant to the 67.11 University of Minnesota at Duluth and the Duluth school district. 67.12 (c) Up to $34,000 each year is for a joint grant to each of 67.13 the following: 67.14 (1) Bemidji state university and the Red Lake school 67.15 district; 67.16 (2) Moorhead state university and a school district located 67.17 within the White Earth reservation; and 67.18 (3) Augsburg college and the Minneapolis school district. 67.19 (d) Money not used for students at one location may be 67.20 transferred for use at another location. 67.21 (e) Any unexpended balance remaining the first year does 67.22 not cancel but is available in the second year. 67.23 Subd. 16. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 67.24 school aid according to Minnesota Statutes, section 124.86: 67.25 $401,000 ..... 1996 67.26 $390,000 ..... 1997 67.27 The 1996 appropriation includes $69,000 for 1995 and 67.28 $332,000 for 1996. 67.29 The 1997 appropriation includes $58,000 for 1996 and 67.30 $332,000 for 1997. 67.31 Subd. 17. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 67.32 SCHOOLS.] For early childhood family education programs at 67.33 tribal contract schools: 67.34 $58,000 ..... 1996 67.35 $58,000 ..... 1997 67.36 Subd. 18. [SECONDARY VOCATIONAL EDUCATION AID.] For 68.1 secondary vocational education aid according to Minnesota 68.2 Statutes, section 124.573: 68.3 $11,335,000 ..... 1996 68.4 $ 1,650,000 ..... 1997 68.5 The 1996 appropriation includes $1,979,000 for 1995 and 68.6 $9,356,000 for 1996. 68.7 The 1997 appropriation includes $1,650,000 for 1996 and $0 68.8 for 1997. 68.9 Subd. 19. [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 68.10 HEARING.] To assist school districts in educating teachers in 68.11 American sign language: 68.12 $13,000 ..... 1996 68.13 $12,000 ..... 1997 68.14 Any balance remaining in the first year does not cancel but 68.15 is available in the second year. 68.16 Sec. 21. [REPEALER.] 68.17 (a) Minnesota Statutes 1994, sections 124.273, subdivisions 68.18 1b and 2c; 124.278; 124.32, subdivisions 1b, 1c, 1d, 1f, 2, and 68.19 3a; and 124.574, subdivisions 2b, 3, 4, and 4a, are repealed. 68.20 (b) Minnesota Statutes 1994, sections 124.311; and 124.573, 68.21 subdivisions 1, 2, 2b, 2e, 2f, 3a, and 5a, are repealed. 68.22 Sec. 22. [EFFECTIVE DATE.] 68.23 (a) Section 21, paragraph (a), is effective July 1, 1995. 68.24 (b) Section 21, paragraph (b), is effective July 1, 1996. 68.25 ARTICLE 4 68.26 COMMUNITY PROGRAMS 68.27 Section 1. Minnesota Statutes 1994, section 124.261, 68.28 subdivision 1, is amended to read: 68.29 Subdivision 1. [AID ELIGIBILITY.] Adult high school 68.30 graduation aid for eligible pupils age 21 or over, equals6568.31 28.5 percent of the general education formula allowance times 68.32 1.30 times the average daily membership under section 124.17, 68.33 subdivision 2e. Adult high school graduation aid must be paid 68.34 in addition to any other aid to the district. Pupils age 21 or 68.35 over may not be counted by the district for any purpose other 68.36 than adult high school graduation aid. 69.1 Sec. 2. Minnesota Statutes 1994, section 124.2713, 69.2 subdivision 3, is amended to read: 69.3 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 69.4 general community education revenue for a district equals $5.95 69.5 for fiscal year 1996 and $4.95 for fiscal year 1997 and later 69.6 times the greater of 1,335 or the population of the district. 69.7 The population of the district is determined according to 69.8 section 275.14. 69.9 Sec. 3. Minnesota Statutes 1994, section 124.2713, 69.10 subdivision 6, is amended to read: 69.11 Subd. 6. [COMMUNITY EDUCATION LEVY.] To obtain community 69.12 education revenue, a district may levy the amount raised by a 69.13 tax rate of 1.13 percentfor fiscal year 1995 and thereafter,69.14 times the adjusted net tax capacity of the district. If the 69.15 amount of the community education levy would exceed the 69.16 community education revenue, the community education levy shall 69.17 be determined according to subdivision 6a. 69.18 Sec. 4. [APPROPRIATIONS.] 69.19 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 69.20 indicated in this section are appropriated from the general fund 69.21 or other named fund to the department of education for the 69.22 fiscal years designated. 69.23 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 69.24 education aid according to Minnesota Statutes, sections 124.26 69.25 in fiscal year 1996 and 124.2601 in fiscal year 1997: 69.26 $8,374,000 ..... 1996 69.27 $8,374,000 ..... 1997 69.28 The 1996 appropriation includes $1,256,000 for 1995 and 69.29 $7,118,000 for 1996. 69.30 The 1997 appropriation includes $1,256,000 for 1996 and 69.31 $7,118,000 for 1997. 69.32 Up to $199,000 each year may be used for contracts with 69.33 private, nonprofit organizations for approved programs. 69.34 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 69.35 adults with disabilities programs according to Minnesota 69.36 Statutes, section 124.2715: 70.1 $577,000 ..... 1996 70.2 $577,000 ..... 1997 70.3 Any balance in the first year does not cancel and is 70.4 available for the second year. 70.5 Subd. 4. [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 70.6 funds received under Minnesota Statutes, section 171.29, 70.7 subdivision 2, paragraph (b), clause (4): 70.8 $514,000 ..... 1996 70.9 $514,000 ..... 1997 70.10 (b) These appropriations are from the alcohol-impaired 70.11 driver account of the special revenue fund. Any funds credited 70.12 for the department of education to the alcohol-impaired driver 70.13 account of the special revenue fund in excess of the amounts 70.14 appropriated in this subdivision are appropriated to the 70.15 department of education and available in fiscal year 1996 and 70.16 fiscal year 1997. 70.17 (c) Up to $226,000 each year may be used by the department 70.18 of education to contract for services to school districts 70.19 stressing the dangers of driving after consuming alcohol. No 70.20 more than five percent of this amount may be used for 70.21 administrative costs by the contract recipients. 70.22 (d) Up to $88,000 each year may be used for grants to 70.23 support student-centered programs to discourage driving after 70.24 consuming alcohol. 70.25 (e) Up to $200,000 and any additional funds each year may 70.26 be used for chemical abuse prevention grants. 70.27 Subd. 5. [COMMUNITY EDUCATION AID.] For community 70.28 education aid according to Minnesota Statutes, section 124.2713: 70.29 $2,826,000 ..... 1996 70.30 $ 846,000 ..... 1997 70.31 The 1996 appropriation includes $499,000 for 1995 and 70.32 $2,327,000 for 1996. 70.33 The 1997 appropriation includes $410,000 for 1996 and 70.34 $436,000 for 1997. 70.35 Subd. 6. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 70.36 childhood family education aid according to Minnesota Statutes, 71.1 section 124.2711: 71.2 $13,919,000 ..... 1996 71.3 $13,921,000 ..... 1997 71.4 The 1996 appropriation includes $2,086,000 for 1995 and 71.5 $11,833,000 for 1996. 71.6 The 1997 appropriation includes $2,088,000 for 1996 and 71.7 $11,833,000 for 1997. 71.8 $10,000 each year may be spent for evaluation of early 71.9 childhood family education programs. 71.10 Subd. 7. [EXTENDED DAY AID.] For extended day aid: 71.11 $58,000 ..... 1996 71.12 $ -0- ..... 1997 71.13 The 1996 appropriation includes $58,000 for 1995 and $0 for 71.14 1996. 71.15 The 1997 appropriation includes $0 for 1996 and $0 for 1997. 71.16 Subd. 8. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 71.17 health and developmental screening aid according to Minnesota 71.18 Statutes, sections 123.702 and 123.7045: 71.19 $1,352,000 ..... 1996 71.20 $1,317,000 ..... 1997 71.21 The 1996 appropriation includes $232,000 for 1995 and 71.22 $1,120,000 for 1996. 71.23 The 1997 appropriation includes $197,000 for 1996 and 71.24 $1,120,000 for 1997. 71.25 Any balance in the first year does not cancel but is 71.26 available in the second year. 71.27 Subd. 9. [HEARING IMPAIRED ADULTS.] For programs for 71.28 hearing impaired adults according to Minnesota Statutes, section 71.29 121.201: 71.30 $60,000 ..... 1996 71.31 $60,000 ..... 1997 71.32 Subd. 10. [ADULT GRADUATION AID.] For adult graduation aid: 71.33 $1,866,000 ..... 1996 71.34 $2,000,000 ..... 1997 71.35 The 1996 appropriation includes $336,000 for 1995 and 71.36 $1,530,000 for 1996. 72.1 The 1997 appropriation includes $269,000 for 1996 and 72.2 $1,731,000 for 1997. 72.3 Subd. 11. [GED TESTS.] For payment of 60 percent of the 72.4 costs of GED tests: 72.5 $126,000 ..... 1996 72.6 $126,000 ..... 1997 72.7 Any balance in the first year does not cancel but is 72.8 available in the second year. 72.9 Subd. 12. [GED COORDINATION.] For GED coordination: 72.10 $ 52,000 ..... 1996 72.11 $ 52,000 ..... 1997 72.12 Subd. 13. [OMBUDSPERSONS.] For ombudspersons: 72.13 $ 33,000 ..... 1996 72.14 $ 36,000 ..... 1997 72.15 The appropriation is made to the office of ombudspersons 72.16 for families for purposes of funding the activities of the 72.17 ombudsperson authorized by Minnesota Statutes, sections 257.0755 72.18 to 257.0768. Any balance in 1996 is available until June 30, 72.19 1997. 72.20 Subd. 14. [WAY TO GROW.] For grants for existing way to 72.21 grow programs according to Minnesota Statutes, section 121.835: 72.22 $409,000 ..... 1996 72.23 $409,000 ..... 1997 72.24 Any balance in the first year does not cancel but is 72.25 available in the second year. 72.26 Subd. 15. [LEARNING READINESS PROGRAM REVENUE.] For 72.27 revenue for learning readiness programs: 72.28 $9,504,000 ..... 1996 72.29 $9,505,000 ..... 1997 72.30 The 1996 appropriation includes $1,424,000 for 1995 and 72.31 $8,080,000 for 1996. 72.32 The 1997 appropriation includes $1,425,000 for 1996 and 72.33 $8,080,000 for 1997. 72.34 $10,000 each year may be spent for evaluation of learning 72.35 readiness programs. 72.36 Subd. 16. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 73.1 violence prevention education grants: 73.2 $1,500,000 ..... 1996 73.3 $1,500,000 ..... 1997 73.4 Of the amount each year, $50 is for program administration. 73.5 Any balance in the first year does not cancel but is 73.6 available in the second year. 73.7 Subd. 17. [PART H.] For part H: 73.8 $ -0- ..... 1996 73.9 $ 400,000 ..... 1997 73.10 Subd. 18. [FAMILY COLLABORATIVES.] For family 73.11 collaboratives: 73.12 $3,500,000 ..... 1996 73.13 $4,000,000 ..... 1997 73.14 Any balance in the first year does not cancel but is 73.15 available in the second year. 73.16 Sec. 5. [REPEALER.] 73.17 (a) Minnesota Statutes 1994, section 124.2716, is repealed. 73.18 (b) Minnesota Statutes 1994, sections 124.2713, 73.19 subdivisions 1, 5, and 9; and 124.2714, are repealed. 73.20 Sec. 6. [EFFECTIVE DATE.] 73.21 (a) Section 5, paragraph (a), is effective July 1, 1995. 73.22 (b) Section 5, paragraph (b), is effective July 1, 1996. 73.23 ARTICLE 5 73.24 FACILITIES 73.25 Section 1. Minnesota Statutes 1994, section 124.243, 73.26 subdivision 2, is amended to read: 73.27 Subd. 2. [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a)For73.28fiscal years 1994 and 1995,Capital expenditure facilities 73.29 previous formula revenue for a district equals$128$123 times 73.30 its actual pupil units for the school year. 73.31 (b) For fiscal years 1996 and later, capital expenditure 73.32 facilities revenue for a district equals$100$96 times the 73.33 district's maintenance cost index times its actual pupil units 73.34 for the school year. 73.35(c) A district's capital expenditure facilities revenue for73.36a school year shall be reduced if the unreserved balance in the74.1capital expenditure facilities account on June 30 of the prior74.2school year exceeds $675 times the fund balance pupil units in74.3the prior year as defined in section 124A.26, subdivision 1. If74.4a district's capital expenditure facilities revenue is reduced,74.5the reduction equals the lesser of (1) the amount that the74.6unreserved balance in the capital expenditure facilities account74.7on June 30 of the prior year exceeds $675 times the fund balance74.8pupil units in the prior year, or (2) the capital expenditure74.9facilities revenue for that year.74.10(d) For 1996 and later fiscal years, the previous formula74.11revenue equals the amount of revenue computed for the district74.12according to section 124.243 for fiscal year 1995.74.13(e)(c) Notwithstanding paragraph (b), for fiscal year 74.14 1996, the revenue for each district equals 25 percent of the 74.15 amount determined in paragraph (b) plus 75 percent of the 74.16 previous formula revenue. 74.17(f)(d) Notwithstanding paragraph (b), for fiscal year 74.18 1997, the revenue for each district equals 50 percent of the 74.19 amount determined in paragraph (b) plus 50 percent of the 74.20 previous formula revenue. 74.21(g)(e) Notwithstanding paragraph (b), for fiscal year 74.22 1998, the revenue for each district equals 75 percent of the 74.23 amount determined in paragraph (b) plus 25 percent of the 74.24 previous formula revenue. 74.25(h)(f) The revenue in paragraph (b) for a district that 74.26 operates a program under section 121.585, is increased by an 74.27 amount equal to $15 times the number of actual pupil units at 74.28 the site where the program is implemented. 74.29 Sec. 2. Minnesota Statutes 1994, section 124.243, is 74.30 amended by adding a subdivision to read: 74.31 Subd. 2b. [CAPITAL EXPENDITURE FACILITIES TAX RATE.] (a) 74.32 For fiscal year 1996, the capital expenditure facilities tax 74.33 rate is 1.39 percent. 74.34 (b) For fiscal year 1997 and thereafter, the commissioner 74.35 shall establish the capital expenditure facilities tax rate by 74.36 July 1 each year for taxes payable in the following year. The 75.1 capital expenditure facilities tax rate shall be a rate, rounded 75.2 up to the nearest hundredth of a percent, that, when applied to 75.3 the adjusted net tax capacity for all districts, raises the 75.4 amount specified for the capital expenditure facilities levy in 75.5 section 124A.231. The capital expenditure facilities tax rate 75.6 may not be changed due to changes or corrections made to a 75.7 district's adjusted net tax capacity after the tax rate has been 75.8 established. 75.9 Sec. 3. Minnesota Statutes 1994, section 124.243, 75.10 subdivision 3, is amended to read: 75.11 Subd. 3. [CAPITAL EXPENDITURE FACILITIES LEVY.] To obtain 75.12 capital expenditure facilities revenue, a district may levy an 75.13 amount not to exceed the lesser of: 75.14 (1) the capital expenditure facilities revenue determined 75.15 in subdivision 2multiplied by the lesser of one, or the ratio75.16of:75.17(1) the quotient derived by dividing the adjusted net tax75.18capacity of the district for the year preceding the year the75.19levy is certified by the actual pupil units in the district for75.20the school year to which the levy is attributable, to75.21(2) 100 percent of the equalizing factor for the school75.22year to which the levy is attributable.; or 75.23 (2) the amount raised by the capital expenditure facilities 75.24 tax rate times the adjusted net tax capacity of the district for 75.25 the preceding year. 75.26 Sec. 4. Minnesota Statutes 1994, section 124.244, 75.27 subdivision 1, is amended to read: 75.28 Subdivision 1. [REVENUE AMOUNT.](a) For fiscal year 1995,75.29the capital expenditure equipment revenue for each district75.30equals $66 times its actual pupil units for the school year.75.31(b)For fiscal years 1996 and later, the capital 75.32 expenditure equipment revenue for each district equals$69$68 75.33 times its actual pupil units for the school year. 75.34(c) Of a district's capital expenditure equipment revenue,75.35$3 times its actual pupil units for the school year shall be75.36reserved and used according to subdivision 4, paragraph (b).76.1 Sec. 5. Minnesota Statutes 1994, section 124.244, is 76.2 amended by adding a subdivision to read: 76.3 Subd. 1a. [CAPITAL EXPENDITURE EQUIPMENT TAX RATE.] (a) 76.4 For fiscal year 1996, the capital expenditure equipment tax rate 76.5 is 0.72 percent. 76.6 (b) For fiscal year 1997 and thereafter, the commissioner 76.7 shall establish the capital expenditure equipment tax rate by 76.8 July 1 each year for taxes payable in the following year. The 76.9 capital expenditure equipment tax rate shall be a rate, rounded 76.10 up to the nearest hundredth of a percent, that, when applied to 76.11 the adjusted net tax capacity for all districts, raises the 76.12 amount specified for the capital expenditure equipment levy in 76.13 section 124A.231. The capital expenditure equipment tax rate 76.14 may not be changed due to changes or corrections made to a 76.15 district's adjusted net tax capacity after the tax rate has been 76.16 established. 76.17 Sec. 6. Minnesota Statutes 1994, section 124.244, 76.18 subdivision 2, is amended to read: 76.19 Subd. 2. [CAPITAL EXPENDITURE EQUIPMENT LEVY.] To obtain 76.20 capital expenditure equipment revenue, a district may levy an 76.21 amount not to exceed the lesser of: 76.22 (1) the district's capital expenditure equipment revenue as 76.23 determined in subdivision 1multiplied by the lesser of one, or76.24the ratio of:76.25(1) the quotient derived by dividing the adjusted net tax76.26capacity of the district for the year preceding the year the76.27levy is certified by the actual pupil units in the district for76.28the school year to which the levy is attributable, to76.29(2) 100 percent of the equalizing factor for the school76.30year to which the levy is attributable.; or 76.31 (2) the amount raised by the capital expenditure equipment 76.32 tax rate times the adjusted net tax capacity of the district for 76.33 the preceding year. 76.34 Sec. 7. Minnesota Statutes 1994, section 124.244, 76.35 subdivision 4, is amended to read: 76.36 Subd. 4. [USES OF REVENUE.](a)Capital expenditure 77.1 equipment revenue may be used only for the following purposes: 77.2 (1) to pay capital expenditure equipment related 77.3 assessments of any entity formed under a cooperative agreement 77.4 between two or more districts; 77.5 (2) to purchase or lease computers and related materials, 77.6 copying machines, telecommunications equipment, and other 77.7 noninstructional equipment; 77.8 (3) to purchase or lease assistive technology or equipment 77.9 for instructional programs; 77.10 (4) to purchase textbooks; 77.11 (5) to purchase new and replacement library books;and77.12 (6) to purchase vehicles except those for which a levy is 77.13 authorized under section 124.226, subdivision 6.; and 77.14(b) The reserved capital expenditure equipment revenue77.15shall only be used(7) to purchase or lease telecommunications 77.16 equipment, computers, and related equipment for integrated 77.17 information management systems for: 77.18(1)(i) managing and reporting learner outcome information 77.19 for all students under a results-oriented graduation rule; 77.20(2)(ii) managing student assessment, services, and 77.21 achievement information required for students with individual 77.22 education plans; and 77.23(3)(iii) other classroom information management needs. 77.24(c) The equipment obtained with reserved revenue shall be77.25utilized, to the greatest extent possible given available77.26funding, on a per instructor or per classroom basis. A school77.27district may supplement its reserved revenue with other capital77.28expenditure equipment revenue, and cash and in-kind grants from77.29public and private sources.77.30 Sec. 8. Minnesota Statutes 1994, section 124.2445, is 77.31 amended to read: 77.32 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 77.33 (a) The board of a school district may issue certificates 77.34 of indebtedness or capital notes subject to the school district 77.35 debt limits to purchase vehicles other than school buses, 77.36 computers, telephone systems, cable equipment, photocopy and 78.1 office equipment, technological equipment for instruction, and 78.2 other capital equipment having an expected useful life at least 78.3 as long as the terms of the certificates or notes. The 78.4 certificates or notes must be payable in not more than five 78.5 years and must be issued on the terms and in the manner 78.6 determined by the board. The certificates or notes may be 78.7 issued by resolution and without the requirement for an 78.8 election.A tax levy must be made for the payment of the78.9principal and interest on the certificates or notes, in78.10accordance with section 475.61, as in the case of bonds. That78.11tax levy for each year must not exceed the amount of the78.12district's capital expenditure equipment levy under section78.13124.244 for the year the initial debt service levies are78.14certified. The district's capital expenditure levy under78.15section 124.244 for each year must be reduced by the amount of78.16the tax levies for debt service certified for each year78.17 (b) A school district issuing certificates of indebtedness 78.18 or capital notes under this section must annually transfer from 78.19 the equipment account in the capital expenditure fund to the 78.20 debt redemption fund the amount needed for payment of the 78.21 principal and interest on the certificates or notesas required78.22by section 475.61. 78.23 Sec. 9. Minnesota Statutes 1994, section 124.248, is 78.24 amended by adding a subdivision to read: 78.25 Subd. 2a. [CAPITAL EXPENDITURE FACILITIES 78.26 REVENUE.] Capital expenditure facilities aid shall be paid to an 78.27 outcome-based school according to section 124.243, subdivision 78.28 2, as though it were a school district. Capital expenditure 78.29 facilities aid shall equal capital expenditure facilities 78.30 revenue. Capital expenditure facilities aid may be used as 78.31 provided under section 124.243, subdivision 6, except as limited 78.32 by subdivision 5. 78.33 Sec. 10. Minnesota Statutes 1994, section 124.248, 78.34 subdivision 4, is amended to read: 78.35 Subd. 4. [OTHER AID, GRANTS, REVENUE.] (a) An 78.36 outcome-based school is eligible to receive other aids, grants, 79.1 and revenue according to chapters 120 to 129, as though it were 79.2 a school district except that, notwithstanding section 124.195, 79.3 subdivision 3, the payments shall be of an equal amount on each 79.4 of the 23 payment dates unless an outcome-based school is in its 79.5 first year of operation in which case it shall receive on its 79.6 first payment date 15 percent of its cumulative amount 79.7 guaranteed for the year and 22 payments of an equal amount 79.8 thereafter the sum of which shall be 85 percent of the 79.9 cumulative amount guaranteed. However, it may not receive aid, 79.10 a grant, or revenue if a levy is required to obtain the money, 79.11 except as otherwise provided in this section. Federal aid 79.12 received by the state must be paid to the school, if it 79.13 qualifies for the aid as though it were a school district. A 79.14 school may apply for federal grants as though it were a school 79.15 district. 79.16 (b) Any revenue received from any source, other than 79.17 revenue that is specifically allowed for operational, 79.18 maintenance, capital facilities revenue under paragraph (c), and 79.19 capital expenditure equipment costs under this section, may be 79.20 used only for the planning and operational start-up costs of an 79.21 outcome-based school. Any unexpended revenue from any source 79.22 under this paragraph must be returned to that revenue source or 79.23 conveyed to the sponsoring school district, at the discretion of 79.24 the revenue source. 79.25 (c) In addition to the capital expenditure facilities 79.26 revenue according to subdivision 2a, an outcome-based school may 79.27 receive money from any source for capital facilities needs. Any 79.28 unexpended capital facilities revenue must be reserved and shall 79.29 be expended only for future capital facilities purposes. 79.30 Sec. 11. Minnesota Statutes 1994, section 124.95, 79.31 subdivision 6, is amended to read: 79.32 Subd. 6. [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 79.33 Debt service equalization aid must be paid as 79.34 follows:one-third30 percent before September 15,one-third30 79.35 percent before December 15,and one-third25 percent before 79.36 March 15of each year, and a final payment of 15 percent by July 80.1 15 of the subsequent fiscal year. 80.2 Sec. 12. Minnesota Statutes 1994, section 124.961, is 80.3 amended to read: 80.4 124.961 [DEBT SERVICE APPROPRIATION.] 80.5 (a)$17,000,000 in fiscal year 1994, $26,000,000 in fiscal80.6year 1995, and$31,600,000 in fiscal year 1996, $31,875,000 in 80.7 fiscal year 1997, and $37,500,000 in fiscal year 1998 and each 80.8 year thereafter is appropriated from the general fund to the 80.9 commissioner of education for payment of debt service 80.10 equalization aid under section 124.95. The19941998 80.11 appropriation includes$3,000,000 for 1993 and $14,000,000 for80.121994$5,625,000 for 1997 and $31,875,000 for 1998. 80.13 (b) The appropriations in paragraph (a) must be reduced by 80.14 the amount of any money specifically appropriated for the same 80.15 purpose in any year from any state fund. 80.16 Sec. 13. [APPROPRIATIONS.] 80.17 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 80.18 indicated in this section are appropriated from the general fund 80.19 to the department of education for the fiscal years designated. 80.20 Subd. 2. [CAPITAL EXPENDITURE FACILITIES AID.] For capital 80.21 expenditure facilities aid according to Minnesota Statutes, 80.22 section 124.243, subdivision 5: 80.23 $70,296,000 ..... 1996 80.24 $71,228,000 ..... 1997 80.25 The 1996 appropriation includes $11,233,000 for 1995 and 80.26 $59,063,000 for 1996. 80.27 The 1997 appropriation includes $10,422,000 for 1996 and 80.28 $60,806,000 for 1997. 80.29 Subd. 3. [CAPITAL EXPENDITURE EQUIPMENT AID.] For capital 80.30 expenditure equipment aid according to Minnesota Statutes, 80.31 section 124.244, subdivision 3: 80.32 $38,992,000 ..... 1996 80.33 $39,781,000 ..... 1997 80.34 The 1996 appropriation includes $5,792,000 for 1995 and 80.35 $33,200,000 for 1996. 80.36 The 1997 appropriation includes $5,858,000 for 1996 and 81.1 $33,923,000 for 1997. 81.2 Subd. 4. [HEALTH AND SAFETY AID.] (a) For health and 81.3 safety aid according to Minnesota Statutes, section 124.83, 81.4 subdivision 5: 81.5 $15,629,000 ..... 1996 81.6 $12,298,000 ..... 1997 81.7 The 1996 appropriation includes $2,606,000 for 1995 and 81.8 $13,023,000 for 1996. 81.9 The 1997 appropriation includes $2,216,000 for 1996 and 81.10 $10,082,000 for 1997. 81.11 (b) $400,000 in fiscal year 1996 and $400,000 in fiscal 81.12 year 1997 is for health and safety management assistance 81.13 contracts under Minnesota Statutes, section 124.83. 81.14 (c) $60,000 of each year's appropriation shall be used to 81.15 contract with the state fire marshal to provide services under 81.16 Minnesota Statutes, section 121.1502. 81.17 Subd. 5. [DEBT SERVICE AID.] For debt service aid 81.18 according to Minnesota Statutes, section 124.95, subdivision 5: 81.19 $30,248,000 ..... 1996 81.20 $31,875,000 ..... 1997 81.21 The 1996 appropriation includes $0 for 1995 and $30,248,000 81.22 for 1996. 81.23 The 1997 appropriation includes $0 for 1996 and $31,875,000 81.24 for 1997. 81.25 Sec. 14. [REPEALER.] 81.26 (a) Minnesota Statutes 1994, section 124.962, is repealed. 81.27 (b) Minnesota Statutes 1994, section 124.243, subdivision 81.28 2a, is repealed. 81.29 (c) Minnesota Statutes 1994, section 124.243, subdivision 81.30 9, is repealed. 81.31 Sec. 15. [EFFECTIVE DATE.] 81.32 (a) Section 1 is effective July 1, 1995, except that the 81.33 repeal of the reduction of the capital expenditure facilities 81.34 revenue in the stricken paragraph (c) is effective for fiscal 81.35 year 1997 and thereafter. 81.36 (b) Section 14, paragraph (a), is effective July 1, 1995. 82.1 (c) Section 14, paragraph (b), is effective July 1, 1996. 82.2 (d) Section 14, paragraph (c), is effective for taxes 82.3 payable in 1996 for fiscal year 1997. 82.4 ARTICLE 6 82.5 EDUCATION ORGANIZATION AND COOPERATION 82.6 Section 1. Minnesota Statutes 1994, section 124.2725, 82.7 subdivision 1, is amended to read: 82.8 Subdivision 1. [ELIGIBILITY.] A school district is 82.9 eligible for cooperation and combination revenue if it has a 82.10 plan approved by the commissioner according to section 82.11 122.243 and it levied under subdivision 3 for taxes payable in 82.12 1995. 82.13 Sec. 2. Minnesota Statutes 1994, section 124.2725, 82.14 subdivision 15, is amended to read: 82.15 Subd. 15. [RETIREMENT AND SEVERANCE LEVY.] A cooperating 82.16 or combined district that levied under subdivision 3 for taxes 82.17 payable in 1995 may levy for severance pay or early retirement 82.18 incentives for licensed and nonlicensed employees who retire 82.19 early as a result of the cooperation or combination. 82.20 Sec. 3. Minnesota Statutes 1994, section 124.2726, 82.21 subdivision 2, is amended to read: 82.22 Subd. 2. [AID.] (a) Consolidation transition aid is equal 82.23 to $200 times the number of actual pupil units in the newly 82.24 created district in the year of consolidation and $100 times the 82.25 number of actual pupil units in the first year following the 82.26 year of consolidation. The number of pupil units used to 82.27 calculate aid in either year shall not exceed 1,000. 82.28 (b) If the total appropriation for consolidation transition 82.29 aid for any fiscal year, plus any amount transferred under 82.30 section 124.14, subdivision 7, is insufficient to pay all 82.31 districts the full amount of aid earned, the department of 82.32 education shall first pay the districts in the first year 82.33 following the year of consolidation the full amount of aid 82.34 earned and distribute any remaining funds to the newly created 82.35 districts in the first year of consolidation. 82.36 Sec. 4. Minnesota Statutes 1994, section 124.2727, 83.1 subdivision 6a, is amended to read: 83.2 Subd. 6a. [DISTRICT COOPERATION REVENUE.] A district's 83.3 cooperation revenue for fiscal year 1996 is equal to the greater 83.4 of $67 times the actual pupil units or $25,000. 83.5 Sec. 5. Minnesota Statutes 1994, section 124.2728, 83.6 subdivision 1, is amended to read: 83.7 Subdivision 1. [ELIGIBILITY.] A school district that 83.8 reorganizes under section 122.23 or sections 122.241 to 122.248 83.9 effective onor afterJuly 1, 1994, is eligible for special 83.10 consolidation aid under this section. A district may receive 83.11 aid under this section for only three years. 83.12 Sec. 6. [APPROPRIATIONS.] 83.13 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 83.14 indicated in this section are appropriated from the general fund 83.15 or other named fund to the department of education for the 83.16 fiscal years designated. 83.17 Subd. 2. [CAPITAL FACILITY GRANTS FOR COOPERATION AND 83.18 COMBINATION.] For competitive grants under Minnesota Statutes, 83.19 section 124C.60: 83.20 $ 408,000 ..... 1996 83.21 Subd. 3. [CONSOLIDATION TRANSITION AID.] For districts 83.22 consolidating under Minnesota Statutes, section 124.2726: 83.23 $ 826,000 ..... 1996 83.24 $ 913,000 ..... 1997 83.25 The 1996 appropriation includes $75,000 for 1995 and 83.26 $751,000 for 1996. 83.27 The 1997 appropriation includes $132,000 for 1996 and 83.28 $781,000 for 1997. 83.29 Subd. 4. [COOPERATION AND COMBINATION AID.] For aid for 83.30 districts that cooperate and combine according to Minnesota 83.31 Statutes, section 124.2725: 83.32 $3,298,000 ..... 1996 83.33 $1,954,000 ..... 1997 83.34 The 1996 appropriation includes $542,000 for 1995 and 83.35 $2,756,000 for 1996. 83.36 The 1997 appropriation includes $486,000 for 1996 and 84.1 $1,468,000 for 1997. 84.2 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 84.3 cooperation revenue aid: 84.4 $11,793,000 ..... 1996 84.5 $ 1,715,000 ..... 1997 84.6 The 1996 appropriation includes $2,073,000 for 1995 and 84.7 $9,720,000 for 1996. 84.8 The 1997 appropriation includes $1,715,000 for 1996 and $0 84.9 for 1997. 84.10 Subd. 6. [SPECIAL CONSOLIDATION AID.] For special 84.11 consolidation aid under Minnesota Statutes, section 124.2728: 84.12 $ 75,000 ..... 1996 84.13 $ 40,000 ..... 1997 84.14 The 1996 appropriation includes $12,000 for 1995 and 84.15 $63,000 for 1996. 84.16 The 1997 appropriation includes $9,000 for 1996 and $31,000 84.17 for 1997. 84.18 Subd. 7. [TRANSITION AID FOR INFORMATION SUPPORT.] For 84.19 information reporting support and software: 84.20 $ 500,000 ..... 1996 84.21 $ 250,000 ..... 1997 84.22 Sec. 7. [REPEALER.] 84.23 Minnesota Statutes 1994, section 124.2727, subdivision 6a, 84.24 is repealed. 84.25 Sec. 8. [EFFECTIVE DATE.] 84.26 Section 7 is effective July 1, 1996. 84.27 ARTICLE 7 84.28 COMMITMENT TO EXCELLENCE 84.29 Section 1. Minnesota Statutes 1994, section 120.064, 84.30 subdivision 3, is amended to read: 84.31 Subd. 3. [SPONSOR.] A school board or a public 84.32 post-secondary institution with an approved teacher training 84.33 program may sponsor one or more outcome-based schools. 84.34A school board may authorize a maximum of five84.35outcome-based schools.84.36No more than a total of 35 outcome-based schools may be85.1authorized. The state board of education shall advise potential85.2sponsors when the maximum number of outcome-based schools has85.3been authorized.85.4 Sec. 2. Minnesota Statutes 1994, section 120.064, 85.5 subdivision 4, is amended to read: 85.6 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 85.7 authorize one or more licensed teachers under section 125.05, 85.8 subdivision 1, to operate an outcome-based school subject to 85.9 approval by the state board of education. If a school board 85.10 elects not to sponsor an outcome-based school, the applicant may 85.11 appeal the school board's decision to the state board of 85.12 education if two members of the school board voted to sponsor 85.13 the school. If the state board authorizes the school, the state 85.14 board shall sponsor the school according to this section. The 85.15 school shall be organized and operated as a cooperative under 85.16 chapter 308A or nonprofit corporation under chapter 317A. 85.17 (b) Before the operators may form and operate a school, the 85.18 sponsor must file an affidavit with the state board of education 85.19 stating its intent to authorize an outcome-based school. The 85.20 affidavit must state the terms and conditions under which the 85.21 sponsor would authorize an outcome-based school. The state 85.22 board must approve or disapprove the sponsor's proposed 85.23 authorization within3060 days of receipt of the affidavit. 85.24 Failure to obtain state board approval precludes a sponsor from 85.25 authorizing the outcome-based school that was the subject of the 85.26 affidavit. 85.27 (c) The operators authorized to organize and operate a 85.28 school shall hold an election for members of the school's board 85.29 of directors in a timely manner after the school is operating. 85.30 Any staff members who are employed at the school, including 85.31 teachers providing instruction under a contract with a 85.32 cooperative, and all parents of children enrolled in the school 85.33 may participate in the election. Licensed teachers employed at 85.34 the school, including teachers providing instruction under a 85.35 contract with a cooperative, must be a majority of the members 85.36 of the board of directors when the school employs at least three 86.1 teachers. A provisional board may operate before the election 86.2 of the school's board of directors. 86.3 Sec. 3. Minnesota Statutes 1994, section 120.064, 86.4 subdivision 8, is amended to read: 86.5 Subd. 8. [REQUIREMENTS.] (a) An outcome-based school shall 86.6 meet all applicable state and local health and safety 86.7 requirements. 86.8 (b) The school must be located in the sponsoring district, 86.9 unless another school board agrees to locate an outcome-based 86.10 school sponsored by another district in its boundaries. If a 86.11 school board denies a request to locate within its boundaries an 86.12 outcome-based school sponsored by another district, the 86.13 sponsoring district may appeal to the state board of education. 86.14 If the state board authorizes the school, the state board shall 86.15 sponsor the school. A post-secondary institution must request 86.16 permission from a district to locate a school within its 86.17 boundaries. If the school district denies permission to locate 86.18 the school within its boundaries, the post-secondary institution 86.19 may appeal to the state board. 86.20 (c) The school must be nonsectarian in its programs, 86.21 admission policies, employment practices, and all other 86.22 operations. A sponsor may not authorize an outcome-based school 86.23 or program that is affiliated with a nonpublic sectarian school 86.24 or a religious institution. 86.25 (d) The primary focus of the school must be to provide a 86.26 comprehensive program of instruction for at least one grade or 86.27 age group from five through 18 years of age. Instruction may be 86.28 provided to people younger than five years and older than 18 86.29 years of age. 86.30 (e) The school may not charge tuition. 86.31 (f) The school is subject to and shall comply with chapter 86.32 363 and section 126.21. 86.33 (g) The school is subject to and shall comply with the 86.34 pupil fair dismissal act, sections 127.26 to 127.39, and the 86.35 Minnesota public school fee law, sections 120.71 to 120.76. 86.36 (h) The school is subject to the same financial audits, 87.1 audit procedures, and audit requirements as a school district. 87.2 The audit must be consistent with the requirements of sections 87.3 121.904 to 121.917, except to the extent deviations are 87.4 necessary because of the program at the school. The department 87.5 of education, state auditor, or legislative auditor may conduct 87.6 financial, program, or compliance audits. 87.7 (i) The school is a school district for the purposes of 87.8 tort liability under chapter 466. 87.9 (j) The school may belong to joint powers organizations and 87.10 other cooperative groups that are designed to serve school 87.11 districts. 87.12 Sec. 4. [124.282] [LEARNER IMPROVEMENT REVENUE.] 87.13 Subdivision 1. [LEARNER IMPROVEMENT REVENUE.] (a) For a 87.14 district that has demonstrated progress toward implementing the 87.15 results-oriented graduation standards according to subdivision 87.16 2, learner improvement revenue equals the greater of $67 times 87.17 the actual pupil units or $25,000; 87.18 (b) For a district that has not demonstrated progress 87.19 toward implementing the results-oriented graduation standards 87.20 according to subdivision 2, learner improvement revenue equals 87.21 the greater of $60 times the actual pupil units or $20,000; 87.22 Subd. 2. [CRITERIA FOR MEASURING PROGRESS.] To be eligible 87.23 for the additional $7 per pupil unit, a district must show 87.24 progress towards implementation of the results-oriented system 87.25 driven by the graduation standards. "Progress" shall be based 87.26 on the district's documented results articulated in its 87.27 five-year plan for implementation of the results-oriented 87.28 system. By February 1, 1996, each district shall create a 87.29 five-year implementation plan and the expected results. The 87.30 commissioner of education shall design and authorize a report 87.31 format and criteria for determination of a district's progress. 87.32 The department of education shall review district plans and the 87.33 documentation of results on a yearly basis over the next five 87.34 years and then award the $7 per pupil unit. 87.35 Subd. 3. [LEARNER IMPROVEMENT LEVY.] To receive learner 87.36 improvement revenue, a district may levy an amount equal to the 88.1 district's learner improvement revenue multiplied by the lesser 88.2 of one, or the ratio of the quotient derived by dividing the 88.3 adjusted net tax capacity of the district for the year preceding 88.4 the year the levy is certified by the actual pupil units in the 88.5 district for the school year to which the levy is attributable 88.6 to $3,500. 88.7 Subd. 4. [LEARNER IMPROVEMENT AID.] A district's learner 88.8 improvement aid is the difference between its learner 88.9 improvement revenue and its learner improvement levy. If a 88.10 district does not levy the entire amount permitted, aid must be 88.11 reduced in proportion to the actual amount levied. 88.12 Subd. 5. [REVENUE USES.] (a) A district must place its 88.13 learner improvement revenue in a reserved account and may only 88.14 use the revenue for the following purposes: 88.15 (1) to maintain or reduce the school district's instructor 88.16 to learner ratios; 88.17 (2) to prepare and use individualized learning plans for 88.18 each learner; 88.19 (3) to provide staff development programs for the purpose 88.20 of improving student performance; 88.21 (4) to provide parent involvement programs; 88.22 (5) to provide secondary vocational education programs; 88.23 (6) to provide education services in a cooperative manner 88.24 or to purchase goods and services from entities formed for 88.25 cooperative purposes; 88.26 (7) to implement the new "results-oriented" graduation 88.27 standards; 88.28 (8) to provide or expand advanced placement and 88.29 international baccalaureate offerings; and 88.30 (9) to provide programs for implementing school site 88.31 decision-making practices, involving staff members, students, 88.32 and parents. 88.33 (b) A district that was a member of an intermediate school 88.34 district organized under chapter 136D on July 1, 1994, must 88.35 demonstrate that it provides, individually or in cooperation 88.36 with other entities, the full range of special education and 89.1 secondary vocational programs and services available to each 89.2 child served by the intermediate. The secondary vocational 89.3 programs and service must meet the requirements established in 89.4 an articulation agreement developed between the state board of 89.5 education and the higher education board. 89.6 Subd. 6. [PRORATION.] (a) If the total appropriation 89.7 available for learner improvement aid for any fiscal year, plus 89.8 any amount transferred under section 124.14, subdivision 7, is 89.9 insufficient to pay all districts the full amount of aid earned, 89.10 the department of education shall reduce each district's 89.11 district cooperation revenue according to the calculations in 89.12 paragraphs (b) to (d). 89.13 (b) If there is insufficient learner improvement aid 89.14 available, the department must recompute the learner improvement 89.15 revenue by proportionally reducing the formula allowance and the 89.16 revenue minimum to the levels that result in an aid entitlement, 89.17 adjusted by the percentage in section 124.195, subdivision 10, 89.18 equal to the amount available. The levy amounts must not be 89.19 recomputed. 89.20 (c) A district's proration aid reduction is equal to the 89.21 lesser of zero, or the difference of the existing aid 89.22 calculation minus the aid amount computed for the district under 89.23 paragraph (b). 89.24 (d) If a district's proration aid reduction is less than 89.25 its revenue reduction, its learner improvement levy authority 89.26 for the following year must be reduced by the amount of the 89.27 difference between its revenue reduction and its aid reduction. 89.28 Sec. 5. [124.2448] [INSTRUCTIONAL TECHNOLOGY REVENUE.] 89.29 Subdivision 1. [REVENUE AMOUNT.] For fiscal years 1997 and 89.30 later, the instructional technology revenue for each school 89.31 district equals the greater of $9 times its actual pupil units 89.32 for the school year or $25,000. 89.33 Subd. 2. [INSTRUCTIONAL TECHNOLOGY LEVY.] To obtain 89.34 instructional technology revenue, a district may levy the amount 89.35 raised by a tax rate of 0.5 percent times the adjusted net tax 89.36 capacity of the district for the year preceding the year the 90.1 levy is certified. If the amount of the instructional 90.2 technology levy would exceed the instructional technology 90.3 revenue, the instructional technology levy shall equal the 90.4 instructional technology revenue. 90.5 Subd. 3. [INSTRUCTIONAL TECHNOLOGY AID.] A district's 90.6 instructional technology aid is the difference between its 90.7 instructional technology revenue and its instructional 90.8 technology levy. If the district does not levy the entire 90.9 amount permitted, the instructional technology aid shall be 90.10 reduced in proportion to the actual amount levied. 90.11 Subd. 4. [USES OF REVENUE.] Instructional technology 90.12 revenue may be used only for the following purposes: 90.13 (1) for the construction, maintenance, and lease cost of an 90.14 interactive television system for instructional purposes; and 90.15 (2) for the purchase, maintenance, professional 90.16 development, and support of computer hardware and software for 90.17 instructional purposes, and to track student assessment data and 90.18 other information relating to the graduation standards. 90.19 Subd. 5. [ACCOUNTING.] Instructional technology revenue 90.20 must be placed in the equipment account in the capital 90.21 expenditure fund. 90.22 Sec. 6. [APPROPRIATIONS.] 90.23 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 90.24 indicated in this section are appropriated from the general fund 90.25 to the department of education for the fiscal years designated. 90.26 Subd. 2. [INTERACTIVE TELEVISION (ITV) AID AND LEVY.] For 90.27 interactive television (ITV) aid and levy: 90.28 $2,573,000 ..... 1996 90.29 $6,807,000 ..... 1997 90.30 The 1996 appropriation includes $473,000 for 1995 and 90.31 $2,100,000 for 1996. 90.32 The 1997 appropriation includes $370,000 for 1996 and 90.33 $6,437,000 for 1997. 90.34 Subd. 3. [INTERNET.] For Internet: 90.35 $200,000 ..... 1996 90.36 $200,000 ..... 1997 91.1 Subd. 4. [MATH-SCIENCE GRANT.] For math-science programs: 91.2 $1,292,000 ..... 1996 91.3 $1,292,000 ..... 1997 91.4 Any balance remaining in the first year does not cancel, 91.5 but is available in the second year. 91.6 Subd. 5. [GRADUATION STANDARDS AND ASSESSMENTS.] (a) For 91.7 accelerated development of the state board of education 91.8 graduation rule: 91.9 $10,000,000 ..... 1996 91.10 $ 5,000,000 ..... 1997 91.11 In addition, $188,000 each year is appropriated from the 91.12 special revenue fund for this activity. 91.13 (b) The appropriation is to be used to fund continued 91.14 assessment and standards development and piloting; to broaden 91.15 public understanding through communication; to continue 91.16 development of learning benchmarks; for ongoing statewide 91.17 assessment efforts; to develop system performance standards; and 91.18 to provide technical assistance to schools throughout the 91.19 state. The appropriation from the special revenue fund is to be 91.20 used for appropriate development efforts in health-related 91.21 standards and assessments. Any amount of this appropriation 91.22 does not cancel and shall be carried forward to the following 91.23 fiscal year. Notwithstanding any law to the contrary, the 91.24 commissioner may contract for national expertise and related 91.25 services in each of these development areas. 91.26 Subd. 6. [EDUCATIONAL EFFECTIVENESS.] For educational 91.27 effectiveness programs according to Minnesota Statutes, section 91.28 121.608: 91.29 $ 749,000 ..... 1996 91.30 $ 749,000 ..... 1997 91.31 Subd. 7. [ACADEMIC EXCELLENCE FOUNDATION.] (a) For the 91.32 academic excellence foundation according to Minnesota Statutes, 91.33 section 121.612: 91.34 $ 452,000 ..... 1996 91.35 $ 452,000 ..... 1997 91.36 (b) Up to $50,000 each year is contingent upon the match of 92.1 $1 in the previous year from private sources consisting of 92.2 either direct monetary contributions or in-kind contributions of 92.3 related goods or services, for each $1 of the appropriation. 92.4 The commissioner of education must certify receipt of the money 92.5 or documentation for the private matching funds or in-kind 92.6 contributions. The unencumbered balance from the amount 92.7 actually appropriated from the contingent amount in 1996 does 92.8 not cancel but is available in 1997. The amount carried forward 92.9 must not be used to establish a larger annual base appropriation 92.10 for later fiscal years. 92.11 Subd. 8. [CHARTER SCHOOLS START-UP.] For charter schools 92.12 start-up: 92.13 $ 100,000 ..... 1996 92.14 $ 100,000 ..... 1997 92.15 Subd. 9. [LEARNER IMPROVEMENT.] For learner improvement: 92.16 $ -0- ..... 1996 92.17 $10,358,000 ..... 1997 92.18 The 1997 appropriation includes $0 for 1996 and $10,358,000 92.19 for 1997. 92.20 Sec. 7. [REPEALER.] 92.21 Minnesota Statutes 1994, section 124.91, subdivision 5, is 92.22 repealed. 92.23 Sec. 8. [EFFECTIVE DATE.] 92.24 Section 7 is effective for taxes payable in 1996 for fiscal 92.25 year 1997. 92.26 ARTICLE 8 92.27 OTHER EDUCATION PROGRAMS 92.28 Section 1. Minnesota Statutes 1994, section 124.214, 92.29 subdivision 2, is amended to read: 92.30 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 92.31 sections 270.07, 375.192, or otherwise, the net tax capacity of 92.32 any school district for any taxable year is changed after the 92.33 taxes for that year have been spread by the county auditor and 92.34 the local tax rate as determined by the county auditor based 92.35 upon the original net tax capacity is applied upon the changed 92.36 net tax capacities, the county auditor shall, prior to February 93.1 1 of each year, certify to the commissioner of education the 93.2 amount of any resulting net revenue loss that accrued to the 93.3 school district during the preceding year. Each year, the 93.4 commissioner shall pay an abatement adjustment to the district 93.5 in an amount calculated according to the provisions of this 93.6 subdivision. This amount shall be deducted from the amount of 93.7 the levy authorized by section 124.912, subdivision 9. The 93.8 amount of the abatement adjustment shall be the product of: 93.9 (1) the net revenue loss as certified by the county 93.10 auditor, times 93.11 (2) the ratio of: 93.12 (a) the sum of the amounts of the district's certified levy 93.13 in the preceding year according to the following: 93.14 (i) section 124A.23 if the districtreceivesreceived 93.15 general education aid according to that section for the second 93.16 preceding year,or section 124B.20, if the education district of93.17which the district is a member receives general education aid93.18according to that section;93.19 (ii) section 124.226, subdivisions 1 and 4, if the district 93.20receivesreceived transportation aid according to section 93.21 124.225 for the second preceding year; 93.22 (iii) section 124.243, if the districtreceivesreceived 93.23 capital expenditure facilities aid according to that section for 93.24 the second preceding year; 93.25 (iv) section 124.244, if the districtreceivesreceived 93.26 capital expenditure equipment aid according to that section for 93.27 the second preceding year; 93.28 (v) section 124.83, if the districtreceivesreceived 93.29 health and safety aid according to that section for the second 93.30 preceding year; 93.31 (vi) sections 124.2713, 124.2714, and 124.2715, if the 93.32 districtreceivesreceived aid for community education programs 93.33 according to any of those sections for the second preceding 93.34 year; 93.35 (vii) section 124.2711, subdivision 2a, if the district 93.36receivesreceived early childhood family education aid according 94.1 to section 124.2711 for the second preceding year; 94.2 (viii) section 124.321, subdivision 3, if the district 94.3receivesreceived special education levy equalization aid 94.4 according to that section for the second preceding year; 94.5 (ix) section 124A.03, subdivision 1g, if the district 94.6receivesreceived referendum equalization aid according to that 94.7 section for the second preceding year; and 94.8 (x) section 124A.22, subdivision 4a, if the district 94.9receivesreceived training and experience aid according to that 94.10 section for the second preceding year; 94.11 (b) to the total amount of the district's certified levy in 94.12 the preceding October, plus or minus auditor's adjustments. 94.13 Sec. 2. Minnesota Statutes 1994, section 124.214, 94.14 subdivision 3, is amended to read: 94.15 Subd. 3. [EXCESS TAX INCREMENT.] If a return of excess tax 94.16 increment is made to a school district pursuant to section 94.17 469.176, subdivision 2, or upon decertification of a tax 94.18 increment district, the school district's aid and levy 94.19 limitations must be adjusted for the fiscal year in which the 94.20 excess tax increment is paid under the provisions of this 94.21 subdivision. 94.22 (a) An amount must be subtracted from the school district's 94.23 aid for the current fiscal year equal to the product of: 94.24 (1) the amount of the payment of excess tax increment to 94.25 the school district, times 94.26 (2) the ratio of: 94.27 (A) the sum of the amounts of the school district's 94.28 certified levy for the fiscal year in which the excess tax 94.29 increment is paid according to the following: 94.30 (i) section 124A.23, if the districtreceivesreceived 94.31 general education aid according to that section, or section94.32124B.20, if the education district of which the district is a94.33member receives general education aid according to that94.34sectionfor the second preceding year; 94.35 (ii) section 124.226, subdivisions 1 and 4, if the school 94.36 districtreceivesreceived transportation aid according to 95.1 section 124.225 for the second preceding year; 95.2 (iii) section 124.243, if the districtreceivesreceived 95.3 capital expenditure facilities aid according to that section for 95.4 the second preceding year; 95.5 (iv) section 124.244, if the districtreceivesreceived 95.6 capital expenditure equipment aid according to that section for 95.7 the second preceding year; 95.8 (v) section 124.83, if the districtreceivesreceived 95.9 health and safety aid according to that section for the second 95.10 preceding year; 95.11 (vi) sections 124.2713, 124.2714, and 124.2715, if the 95.12 districtreceivesreceived aid for community education programs 95.13 according to any of those sections for the second preceding 95.14 year; 95.15 (vii) section 124.2711, subdivision 2a, if the district 95.16receivesreceived early childhood family education aid according 95.17 to section 124.2711 for the second preceding year; 95.18 (viii) section 124.321, subdivision 3, if the district 95.19receivesreceived special education levy equalization aid 95.20 according to that section for the second preceding year; 95.21 (ix) section 124A.03, subdivision 1g, if the district 95.22receivesreceived referendum equalization aid according to that 95.23 section for the second preceding year; and 95.24 (x) section 124A.22, subdivision 4a, if the district 95.25receivesreceived training and experience aid according to that 95.26 section for the second preceding year; 95.27 (B) to the total amount of the school district's certified 95.28 levy for the fiscal year, plus or minus auditor's adjustments. 95.29 (b) An amount must be subtracted from the school district's 95.30 levy limitation for the next levy certified equal to the 95.31 difference between: 95.32 (1) the amount of the distribution of excess increment, and 95.33 (2) the amount subtracted from aid pursuant to clause (a). 95.34 If the aid and levy reductions required by this subdivision 95.35 cannot be made to the aid for the fiscal year specified or to 95.36 the levy specified, the reductions must be made from aid for 96.1 subsequent fiscal years, and from subsequent levies. The school 96.2 district shall use the payment of excess tax increment to 96.3 replace the aid and levy revenue reduced under this subdivision. 96.4 This subdivision applies only to the total amount of excess 96.5 increments received by a school district for a calendar year 96.6 that exceeds $25,000. 96.7 Sec. 3. Minnesota Statutes 1994, section 125.05, 96.8 subdivision 1a, is amended to read: 96.9 Subd. 1a. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 96.10 (a) The board of teaching shall issue licenses under its 96.11 jurisdiction to persons the board finds to be qualified and 96.12 competent for their respective positions. 96.13 (b) The board shall require a person to successfully 96.14 complete an examination of skills in reading, writing, and 96.15 mathematics before being granted an initial teaching license to 96.16 provide direct instruction to pupils in prekindergarten, 96.17 elementary, secondary, or special education programs. The board 96.18 shall require colleges and universities offering a board 96.19 approved teacher preparation program to provide remedial 96.20 assistance that includes a formal diagnostic component to 96.21 persons enrolled in their institution who did not achieve a 96.22 qualifying score on the skills examination, including those for 96.23 whom English is a second language. The colleges and 96.24 universities must provide assistance in the specific academic 96.25 areas of deficiency in which the person did not achieve a 96.26 qualifying score. School districts must provide similar, 96.27 appropriate, and timely remedial assistance that includes a 96.28 formal diagnostic component and mentoring to those persons 96.29 employed by the district who completed their teacher education 96.30 program outside the state of Minnesota, received a one-year 96.31 license to teach in Minnesota and did not achieve a qualifying 96.32 score on the skills examination, including those persons for 96.33 whom English is a second language. 96.34 (c) In fiscal year 1999, and thereafter, in addition to the 96.35 requirements in paragraph (b), the board shall require a person, 96.36 who is an applicant for an initial elementary or secondary 97.1 teaching license, to demonstrate, to the satisfaction of the 97.2 board, the following: 97.3 (1) knowledge of the philosophy and contents of Minnesota's 97.4 graduation standards; 97.5 (2) at least a B average in coursework required for 97.6 graduation; 97.7 (3) at least a B average in English composition including 97.8 demonstration of writing skills traditionally associated with 97.9 completion of at least one additional year of composition or 97.10 technical writing beyond the general requirement for a BA; and 97.11 (4) knowledge of and practice in using current software and 97.12 other technology for improving student learning. 97.13 (d) In fiscal year 1999, and thereafter, in addition to the 97.14 requirements in paragraphs (b) and (c), the board shall require 97.15 a person, who is an applicant for an initial secondary teaching 97.16 license, to demonstrate, to the satisfaction of the board, the 97.17 following: 97.18 (1) a major with at least a B average in each academic 97.19 discipline the person is seeking certification to teach; 97.20 (2) skills in teaching and evaluating reading, including 97.21 technical reading, if appropriate, using the academic discipline 97.22 for which certification is sought; 97.23 (3) skills in the teaching and evaluating of communication, 97.24 including technical writing, if appropriate, using the academic 97.25 discipline for which certification is sought; and 97.26 (4) an evaluation of the prospective teacher's performance 97.27 in an internship including an evaluation of the ability to use 97.28 the chosen academic field as a medium for developing a student's 97.29 general reading, writing, and speaking skills. 97.30 (e) In fiscal year 1999, and thereafter, in addition to the 97.31 requirements in paragraphs (b) and (c), the board shall require 97.32 a person, who is an applicant for an initial elementary teaching 97.33 license, to demonstrate, to the satisfaction of the board, the 97.34 following: 97.35 (1) completion of coursework with at least an overall B 97.36 average in: 98.1 (i) eight quarter credits or the equivalent in semester 98.2 credits in college-level math or computer science; 98.3 (ii) eight quarter credits or the equivalent in semester 98.4 credits in college-level natural sciences; 98.5 (iii) 12 quarter credits or the equivalent in semester 98.6 credits in American history, political science, or both; 98.7 (iv) 12 quarter credits or the equivalent in semester 98.8 credits in western civilization, humanities, arts, or 98.9 literature; and 98.10 (v) 12 quarter credits or the equivalent in semester 98.11 credits in nonwestern civilization, humanities, arts, or 98.12 literature; 98.13 (2) skills in teaching and evaluating reading; 98.14 (3) skills in teaching and evaluating writing; 98.15 (4) skills in teaching and evaluating mathematics; and 98.16 (5) an evaluation of the prospective teacher's performance 98.17 in an internship including an evaluation of the use of a variety 98.18 of subject areas as the foundation for developing student's 98.19 general communication skills. 98.20 (f) A person who has completed an approved teacher 98.21 preparation program and obtained a one-year license to teach, 98.22 but has not successfully completed the skills examination, may 98.23 renew the one-year license for two additional one-year periods. 98.24 Each renewal of the one-year license is contingent upon the 98.25 licensee: 98.26 (1) providing evidence of participating in an approved 98.27 remedial assistance program provided by a school district or 98.28 post-secondary institution that includes a formal diagnostic 98.29 component in the specific areas in which the licensee did not 98.30 obtain qualifying scores; and 98.31 (2) attempting to successfully complete the skills 98.32 examination during the period of each one-year license. 98.33(d)(g) The board of teaching shall grant continuing 98.34 licenses only to those persons who have met board criteria for 98.35 granting a continuing license, which includes successfully 98.36 completing the skills examination in reading, writing, and 99.1 mathematics. 99.2 Sec. 4. Minnesota Statutes 1994, section 125.623, 99.3 subdivision 2, is amended to read: 99.4 Subd. 2. [GRANTS.] The commissioner of education in 99.5 consultation with themulticultural advisory committee99.6established in section 126.82desegregation/integration advisory 99.7 board established in section 121.1601, subdivision 3, shall 99.8 award grants for professional development programs to recruit 99.9 and educate people of color in the field of education, including 99.10 early childhood and parent education. Grant applicants must be 99.11 a school district with a growing minority population working in 99.12 collaboration with a state institution of higher education with 99.13 an approved teacher licensure program or an approved early 99.14 childhood or parent education licensure program. 99.15 Sec. 5. [UNRECOVERED RAILROAD AID.] 99.16 Unrecovered railroad aid payments pursuant to Laws 1984, 99.17 chapter 502, article 9, section 5, shall be adjusted from the 99.18 school district's aid in fiscal year 1997. If the aid reduction 99.19 required by this section cannot be made to the aid for fiscal 99.20 year 1997, the reduction must be made from aid for subsequent 99.21 fiscal years. 99.22 Sec. 6. [APPROPRIATIONS.] 99.23 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums in this 99.24 section are appropriated, unless otherwise indicated, from the 99.25 general fund to the department of education for the fiscal years 99.26 designated. 99.27 Subd. 2. [ABATEMENT AID.] For abatement aid according to 99.28 Minnesota Statutes, section 124.214: 99.29 $22,541,000 ..... 1996 99.30 $ 9,605,000 ..... 1997 99.31 The 1996 appropriation includes $1,135,000 for 1995 and 99.32 $21,406,000 for 1996. 99.33 The 1997 appropriation includes $3,777,000 for 1996 and 99.34 $5,828,000 for 1997. 99.35 Subd. 3. [INTEGRATION GRANTS.] (a) For grants to districts 99.36 implementing desegregation plans mandated by the state board: