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HF 1144

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/07/2022 03:45pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education finance; requiring compensatory spending to be delivered
through evidence-based programs; requiring at least 80 percent of compensatory
revenue to remain at the site where the revenue was earned; modifying the
compensatory revenue formula; appropriating money; amending Minnesota Statutes
2020, sections 126C.05, subdivision 3; 126C.15.

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

Section 1.

Minnesota Statutes 2020, section 126C.05, subdivision 3, is amended to read:


Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units deleted text beginfor
fiscal year 1998 and thereafter
deleted text end must be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a district
equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal
year.

(b) The compensation revenue pupil weighting factor for a building equals deleted text beginthe lesser of
one or
deleted text end the quotient obtained by dividing the building's compensation revenue concentration
percentage by 80.0.

(c) The compensation revenue pupil units for a building equals the product of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under
section 124D.151, charter schools, and contracted alternative programs in the first year of
operation, compensation revenue pupil units shall be computed using data for the current
fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative
program begins operation after October 1, compensatory revenue pupil units shall be
computed based on pupils enrolled on an alternate date determined by the commissioner,
and the compensation revenue pupil units shall be prorated based on the ratio of the number
of days of student instruction to 170 days.

(e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued
in fiscal year 2022 due to the reduction in the participation limit under section 124D.151,
subdivision 6, those discontinued seats must not be used to calculate compensation revenue
pupil units for fiscal year 2022.

(f) The percentages in this subdivision must be based on the count of individual pupils
and not on a building average or minimum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2022 and later.
new text end

Sec. 2.

Minnesota Statutes 2020, section 126C.15, is amended to read:


126C.15 BASIC SKILLS REVENUE; COMPENSATORY EDUCATION
REVENUE.

Subdivision 1.

Use of revenue.

The basic skills revenue under section 126C.10,
subdivision 4
, must be reserved and deleted text beginuseddeleted text endnew text begin must be spent on evidence-based practicesnew text end to meet
the educational needs of pupils who enroll under-prepared to learn and whose progress
toward meeting state or local content or performance standards is below the level that is
appropriate for learners of their age. Basic skills revenue may also be used for programs
designed to prepare children and their families for entry into school whether the student
first enrolls in kindergarten or first grade. deleted text beginAny of the following may be provided to meet
these learners' needs
deleted text endnew text begin Evidence-based practices may be provided in the following areasnew text end:

(1) direct instructional services under the assurance of mastery program according to
section 124D.66;

(2) remedial instruction in reading, language arts, mathematics, other content areas, or
study skills to improve the achievement level of these learners;

(3) additional teachers and teacher aides to provide more individualized instruction to
these learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;

(4) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract with
a community-based organization;

(5) comprehensive and ongoing staff development consistent with district and site plans
according to section 122A.60 and to implement plans under section 120B.12, subdivision
4a, for teachers, teacher aides, principals, and other personnel to improve their ability to
identify the needs of these learners and provide appropriate remediation, intervention,
accommodations, or modifications;

(6) instructional materials, digital learning, and technology appropriate for meeting the
individual needs of these learners;

(7) programs to reduce truancy, encourage completion of high school, enhance
self-concept, provide health services, provide nutrition services, provide a safe and secure
learning environment, provide coordination for pupils receiving services from other
governmental agencies, provide psychological services to determine the level of social,
emotional, cognitive, and intellectual development, and provide counseling services, guidance
services, and social work services;

(8) bilingual programs, bicultural programs, and programs for English learners;

(9) deleted text beginall-day kindergarten;
deleted text end

deleted text begin (10)deleted text end early education programs, parent-training programs, school readiness programs,
kindergarten programs for four-year-olds, voluntary home visits under section 124D.13,
subdivision 4, and other outreach efforts designed to prepare children for kindergarten;

deleted text begin (11)deleted text endnew text begin (10)new text end extended school day and extended school year programs; and

deleted text begin (12)deleted text endnew text begin (11)new text end substantial parent involvement in developing and implementing remedial
education or intervention plans for a learner, including learning contracts between the school,
the learner, and the parent that establish achievement goals and responsibilities of the learner
and the learner's parent or guardian.

Subd. 2.

Building allocation.

(a) A district or cooperative must allocate its compensatory
revenue to each school building in the district or cooperative where the children who have
generated the revenue are served unless the school district or cooperative has received
permission under Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate
compensatory revenue according to student performance measures developed by the school
board.

(b) Notwithstanding paragraph (a), a district or cooperative may allocate up to deleted text begin50deleted text endnew text begin 20new text end
percent of the amount of compensatory revenue that the district receives to school sites
according to a plan adopted by the school board. The money reallocated under this paragraph
must be spent for the purposes listed in subdivision 1, but may be spent on students in any
grade, including students attending school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means
education site as defined in section 123B.04, subdivision 1.

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue generated
by students served at a cooperative unit shall be paid to the cooperative unit.

(e) A district or cooperative with school building openings, school building closings,
changes in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district or cooperative must report to the department any
adjustments it makes according to this paragraph and the department must use the adjusted
compensatory revenue allocations in preparing the report required under section 123B.76,
subdivision 3
, paragraph (c).

Subd. 3.

Recommendation.

A school site decision-making team, as defined in section
123B.04, subdivision 2, paragraph (a), or the instruction and curriculum advisory committee
under section 120B.11, if the school has no school site decision team, shall recommend
how the compensatory education revenue will be used to carry out the purpose of this section.
A school district that has received permission under Laws 2005, First Special Session chapter
5, article 1, section 50, to allocate compensatory revenue according to school performance
measures shall share its plan for the distribution of compensatory revenue with the school
site decision team.

Subd. 4.

Separate accounts.

Each district and cooperative unit that receives basic skills
revenue shall maintain separate accounts to identify expenditures for salaries and programs
related to basic skills revenue.

Subd. 5.

Annual expenditure report.

Each year a district that receives basic skills
revenue must submit a reportnew text begin to the commissioner of education in the form and manner
specified by the commissioner
new text end identifying the expenditures it incurred to meet the needs of
eligible learners under subdivision 1. The report must conform to uniform financial and
reporting standards established for this purposenew text begin and the compensatory revenue functional
accounting guidelines established by the commissioner
new text end. Using valid and reliable data and
measurement criteria, the report also must determine whether increased expenditures raised
student achievement levels.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2022 and later.
new text end

Sec. 3. new text beginAPPROPRIATION; ADDITIONAL COMPENSATORY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For additional general education aid for compensatory
revenue according to section 1:
new text end

new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2022
new text end
new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2023
new text end