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HF 1585

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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Engrossments
Introduction Posted on 03/01/2007

Current Version - as introduced

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A bill for an act
 relating to education finance; restoring funding for special education programs;
fully funding the state's special education revenue formulas; making the
appropriation for special education aid open and standing; amending Minnesota
Statutes 2006, sections 125A.76, subdivisions 1, 5; 125A.79, subdivisions 1, 5,
7; 126C.20; repealing Minnesota Statutes 2006, sections 125A.76, subdivision 4;
125A.79, subdivision 6.

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

Section 1.

Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to
read:


Subdivision 1.

Definitions.

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

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

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

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

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

(e) "Program growth factor" means 1.046 for fiscal year 2003, deleted text begin and deleted text end 1.0 for fiscal deleted text begin yeardeleted text end
new text begin years new text end 2004new text begin through 2007, and 1.046 for fiscal year 2008new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
 new text end

Sec. 2.

Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:


Subd. 5.

School district special education aid.

(a) A school district's special
education aid deleted text begin for fiscal year 2000 and laterdeleted text end equals the deleted text begin state total special education aid,
minus the amount determined under paragraphs (b) and (c), times the ratio of thedeleted text end district's
adjusted special education base revenue deleted text begin to the state total adjusted special education base
revenuedeleted text end . If the commissioner of education modifies its rules for special education in a
manner that increases a district's special education obligations or service requirements,
the commissioner shall annually increase each district's special education aid by the
amount necessary to compensate for the increased service requirements. The additional
aid equals the cost in the current year attributable to rule changes not reflected in the
computation of special education base revenue, multiplied by the appropriate percentages
from subdivision 2.

(b) Notwithstanding paragraph (a), if the special education base revenue for a
district equals zero, the special education aid equals the amount computed according
to subdivision 2 using current year data.

(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for
a district is greater than zero, and the base year amount for the district under subdivision
2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the
amount computed according to paragraph (a), plus the amount computed according to
subdivision 2, paragraph (a), clause (7), using current year data.

(d) A charter school under section 124D.10 shall generate state special education
aid based on current year expenditures for its first four years of operation and only in its
fifth and later years shall paragraphs (a), (b), and (c) apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
 new text end

Sec. 3.

Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

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

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

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

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

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

(b) "General revenue" means the sum of the general education revenue according to
section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
the total qualifying referendum revenue specified in paragraph (e) minus transportation
sparsity revenue minus total operating capital revenue.

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

(d) "Program growth factor" means 1.02 for fiscal year 2003, deleted text begin anddeleted text end 1.0 for fiscal deleted text begin yeardeleted text end
new text begin years new text end 2004 new text begin through 2007, and 1.02 for fiscal year 2008 new text end and later.

(e) "Total qualifying referendum revenue" means two-thirds of the district's total
referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
 new text end

Sec. 4.

Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:


Subd. 5.

Initial excess cost aid.

deleted text begin For fiscal years 2002 and later,deleted text end A district's initial
excess cost aid equals the greatest of:

(1) 75 percent of the difference between (i) the district's unreimbursed special
education cost and (ii) 4.36 percent of the district's general revenue;

(2) 70 percent of the difference between (i) the increase in the district's unreimbursed
special education cost between the base year as defined in section 125A.76, subdivision 1,
and the current year and (ii) 1.6 percent of the district's general revenue; or

(3) zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
 new text end

Sec. 5.

Minnesota Statutes 2006, section 125A.79, subdivision 7, is amended to read:


Subd. 7.

District special education excess cost aid.

A district's special education
excess cost aid deleted text begin for fiscal year 2002 and laterdeleted text end equals deleted text begin the state total special education excess
cost aid times the ratio ofdeleted text end the district's initial excess cost aid deleted text begin to the state total initial excess
cost aiddeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
 new text end

Sec. 6.

Minnesota Statutes 2006, section 126C.20, is amended to read:


126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the amount
necessary for general education aidnew text begin and special education aid under sections 125A.76
and 125A.79new text end . This amount must be reduced by the amount of any money specifically
appropriated for the same purpose in any year from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
 new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 125A.76, subdivision 4; and 125A.79, subdivision
6, new text end new text begin are repealed effective for revenue for fiscal year 2008.
 new text end