HF 1162

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 05:15pm

A bill for an act
relating to education finance; increasing funding for special education; amending
Minnesota Statutes 2018, section 125A.76, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 125A.

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

Section 1.

Minnesota Statutes 2018, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section and section 125A.79,
the definitions in this subdivision apply.

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

(c) "Essential personnel" means teachers, cultural liaisons, related services, and support
services staff providing services to students. Essential personnel may also include special
education paraprofessionals or clericals providing support to teachers and students by
preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individualized education programs. Essential
personnel does not include administrators and supervisors.

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

(e) "Program growth factor" means deleted text begin 1.046 for fiscal years 2012 through 2015, 1.0 for
fiscal year 2016, deleted text end 1.046 for fiscal year 2017, and the product of 1.046 and the program growth
factor for the previous year for fiscal year 2018 and later.

(f) "Nonfederal special education expenditure" means all direct expenditures that are
necessary and essential to meet the district's obligation to provide special instruction and
services to children with a disability according to sections 124D.454, 125A.03 to 125A.24,
125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by the
department under section 125A.75, subdivision 4, excluding expenditures:

(1) reimbursed with federal funds;

(2) reimbursed with other state aids under this chapter;

(3) for general education costs of serving students with a disability;

(4) for facilities;

(5) for pupil transportation; and

(6) for postemployment benefits.

(g) "Old formula special education expenditures" means expenditures eligible for revenue
under Minnesota Statutes 2012, section 125A.76, subdivision 2.

(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and fringe
benefits of one-to-one instructional and behavior management aides and one-to-one licensed,
certified professionals assigned to a child attending the academy, if the aides or professionals
are required by the child's individualized education program.

(i) "Special education aid increase limit" means $80 for fiscal year 2016, $100 for fiscal
year 2017, and, for fiscal year 2018 and later, the sum of the special education aid increase
limit for the previous fiscal year and $40.

(j) "District" means a school district, a charter school, or a cooperative unit as defined
in section 123A.24, subdivision 2. Notwithstanding section 123A.26, cooperative units as
defined in section 123A.24, subdivision 2, are eligible to receive special education aid under
this section and section 125A.79.

new text begin (k) "Initial special education cross subsidy" means the greater of zero or:
new text end

new text begin (1) the nonfederal special education expenditure under paragraph (f); plus
new text end

new text begin (2) the cost of providing transportation services for pupils with disabilities under section
123B.92, subdivision 1, paragraph (b), clause (4); minus
new text end

new text begin (3) the special education aid under subdivision 2c and sections 125A.11, subdivision 1,
and 127A.47, subdivision 7; minus
new text end

new text begin (4) the amount of general education revenue, excluding local optional revenue, plus
local optional aid and referendum equalization aid attributable to pupils receiving special
instruction and services outside the regular classroom for more than 60 percent of the school
day for the portion of time the pupils receive special instruction and services outside the
regular classroom, excluding portions attributable to district and school administration,
district support services, operations and maintenance, capital expenditures, and pupil
transportation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 2.

new text begin [125A.81] SPECIAL EDUCATION CROSS SUBSIDY AID.
new text end

new text begin (a) A school district's annual special education cross subsidy aid equals the school
district's initial special education cross subsidy calculated for the preceding year times the
cross subsidy aid factor for that fiscal year.
new text end

new text begin (b) The cross subsidy aid factor equals 3.3 percent for fiscal year 2020, 6.6 percent for
fiscal year 2021, 9.9 percent for fiscal year 2022, and 13.2 percent for fiscal year 2023 and
later.
new text end

Sec. 3. new text begin APPROPRIATIONS.
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 for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Special education cross subsidy aid. new text end

new text begin (a) For special education cross subsidy
aid under Minnesota Statutes, section 125A.81:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2020 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2021 new text end

new text begin (b) Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin (c) If the appropriation amount is insufficient in either year, the commissioner of
education shall reduce the reimbursement rate in Minnesota Statutes, section 125A.81, and
the revenue for that fiscal year must be prorated.
new text end