1.1                          A bill for an act
  1.2             relating to education; directing the legislative 
  1.3             auditor to advise the legislature on the needs of 
  1.4             prekindergarten to grade 12 students and the condition 
  1.5             of education in the state; increasing general 
  1.6             education revenue; increasing funding for special 
  1.7             programs; providing inflationary increases for other 
  1.8             programs; establishing an advisory panel; creating a 
  1.9             technology revenue program; appropriating money; 
  1.10            amending Minnesota Statutes 1996, sections 3.971, by 
  1.11            adding a subdivision; 124.17, subdivision 1d; 124.273, 
  1.12            subdivisions 1d and 1g; 124.3201, subdivision 1; 
  1.13            124.323, subdivision 2; and 124A.22, subdivision 2, as 
  1.14            amended; proposing coding for new law in Minnesota 
  1.15            Statutes, chapter 124; repealing Minnesota Statutes 
  1.16            1996, section 124.273, subdivision 1f. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1996, section 3.971, is 
  1.19  amended by adding a subdivision to read: 
  1.20     Subd. 5.  [EDUCATIONAL ACCOUNTABILITY; PURPOSE.] (a) An 
  1.21  independent office of educational accountability within the 
  1.22  office of the legislative auditor is established to address the 
  1.23  needs for educational accountability, credible information on 
  1.24  the condition of prekindergarten to grade 12 education in 
  1.25  Minnesota, cost-effectiveness, and long-term continuity, and to 
  1.26  separate accountability and public reporting from monitoring and 
  1.27  administrative oversight.  The office shall consider and 
  1.28  periodically report to the legislature, at least on a biennial 
  1.29  basis, on the needs of students and the condition of education 
  1.30  in Minnesota. 
  1.31     (b) In realizing its purpose under paragraph (a), the 
  2.1   office of educational accountability shall advise the 
  2.2   legislature on the degree to which the statewide educational 
  2.3   accountability and reporting system includes a comprehensive, 
  2.4   performance-based assessment framework that makes schools 
  2.5   accountable for students achieving the goals described in the 
  2.6   state's high school graduation rule.  The office shall consider 
  2.7   whether the statewide system of educational accountability 
  2.8   provides useful comparative and contextual data on students, 
  2.9   schools, districts, and the state, and whether it includes: 
  2.10     (1) public reporting on the condition of the educational 
  2.11  system using multiple indicators that are essential to 
  2.12  describing and understanding the needs of children and youth and 
  2.13  apply to all students; 
  2.14     (2) a core set of educational indicators that are 
  2.15  comparable and capable of being aggregated across school 
  2.16  districts and across time on a statewide basis; 
  2.17     (3) public reporting on the condition of the educational 
  2.18  system that supports the direction of state educational policy; 
  2.19     (4) a public reporting system that is flexible, permits the 
  2.20  adding, modifying, and deleting of measures as policies and 
  2.21  circumstances change; 
  2.22     (5) a public reporting system that aligns conceptually and 
  2.23  in practice with the information needs of local school 
  2.24  districts, and contains measures that local communities and 
  2.25  schools can influence; 
  2.26     (6) reports of performance information that assure all 
  2.27  students' privacy and confidentiality; 
  2.28     (7) student performance indicators that contain clearly 
  2.29  articulated standards of student performance and have broad 
  2.30  community support; 
  2.31     (8) reports of educational performance that reflect current 
  2.32  results and trends over time; 
  2.33     (9) a reporting system that reduces and consolidates the 
  2.34  existing reporting burden on school districts by better using 
  2.35  existing information and building on current data reporting 
  2.36  systems at the state and district levels; and 
  3.1      (10) a reporting system that is managed in a nonpartisan 
  3.2   and highly competent manner to ensure the public's use and 
  3.3   confidence and minimizes the reporting burden on school 
  3.4   districts.  To the extent the statewide educational 
  3.5   accountability and reporting system does not include a 
  3.6   comprehensive, performance-based assessment framework that makes 
  3.7   schools accountable for students achieving the goals described 
  3.8   in the state's high school graduation rule, or does not provide 
  3.9   useful comparative and contextual data on students, schools, 
  3.10  districts, and the state, the office shall recommend to the 
  3.11  legislature ways to improve the accountability and reporting 
  3.12  system. 
  3.13     (c) When the office reviews the statewide educational 
  3.14  accountability and reporting system, it shall also: 
  3.15     (1) consider the objectivity and neutrality of the state's 
  3.16  educational accountability system; 
  3.17     (2) develop strong relationships with other policy actors 
  3.18  and with leaders outside government; 
  3.19     (3) recommend a uniform, statewide policy applicable to all 
  3.20  schools and school districts regarding the participation or 
  3.21  exclusion of students with special needs or limited English 
  3.22  proficiency on statewide assessments; and 
  3.23     (4) consider the impact of a high stakes testing program on 
  3.24  school curriculum and student learning. 
  3.25     (d) An executive director who serves in the unclassified 
  3.26  service shall direct the office.  The office may enter into 
  3.27  contracts and perform such other functions as are necessary to 
  3.28  carry out the duties of office. 
  3.29     (e) A technical quality review advisory panel is 
  3.30  established to assist the office of educational accountability 
  3.31  in clearly articulating the criteria for judging the statewide 
  3.32  education accountability and reporting system.  Among other 
  3.33  things, the criteria shall measure the extent to which the 
  3.34  system: 
  3.35     (1) creates intended and unintended consequences; 
  3.36     (2) is fairly administered; 
  4.1      (3) evaluates the desired and appropriate complex 
  4.2   intellectual processes; 
  4.3      (4) is relevant and meaningful to teachers, students, and 
  4.4   parents; 
  4.5      (5) evaluates skills that are transferable; 
  4.6      (6) is cost-efficient; and 
  4.7      (7) is comprehensive in its coverage of content. 
  4.8      Panel members shall include psychometricians and other 
  4.9   experts in the field of student assessment, an elementary school 
  4.10  teacher employed in a state public school, a secondary school 
  4.11  teacher employed in a state public school, a curriculum and 
  4.12  instruction director employed in a state public school, and a 
  4.13  local school administrator.  Panel members are appointed by and 
  4.14  serve at the pleasure of the speaker of the house, the house 
  4.15  minority leader, the majority leader of the senate, and the 
  4.16  senate minority leader.  Panel members shall receive 
  4.17  compensation according to section 15.059, subdivision 3. 
  4.18     (f) The office of educational accountability shall report 
  4.19  at least biennially by November 1 preceding the first year of 
  4.20  the state's biennial legislative session to the legislature on 
  4.21  the status of the statewide system of educational accountability.
  4.22     Sec. 2.  [124.1627] [GATEWAY PROGRAMS.] 
  4.23     Subdivision 1.  [ESTABLISHMENT.] A school district is 
  4.24  encouraged to establish programs designed to provide new 
  4.25  students with a gateway into the school district.  Components of 
  4.26  a gateway program include gathering relevant student information 
  4.27  and performing an initial assessment of the remedial education 
  4.28  and language needs of the student. 
  4.29     Subd. 2.  [STATE AID.] A school district that establishes a 
  4.30  gateway program is eligible for state aid for placement center 
  4.31  costs and gateway programs equal to $100 times each student 
  4.32  newly entering the school district. 
  4.33     Subd. 3.  [REVENUE USES.] Revenue earned under this section 
  4.34  must be used to perform a comprehensive assessment of the 
  4.35  educational needs, including, but not limited to, the remedial 
  4.36  needs and language needs, of students newly entering a school 
  5.1   district.  To the extent possible, a school district shall 
  5.2   perform the student assessment prior to assigning the student to 
  5.3   a classroom. 
  5.4      Sec. 3.  Minnesota Statutes 1996, section 124.17, 
  5.5   subdivision 1d, is amended to read: 
  5.6      Subd. 1d.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
  5.7   year 1993 1998 and thereafter must be computed according to this 
  5.8   subdivision.  
  5.9      (a) The AFDC concentration percentage for a district equals 
  5.10  the product of 100 times the ratio of:  
  5.11     (1) the number of pupils enrolled in the district from 
  5.12  families receiving aid to families with dependent children 
  5.13  according to subdivision 1e; to 
  5.14     (2) the number of pupils in average daily membership 
  5.15  according to subdivision 1e enrolled in the district. 
  5.16     (b) The AFDC pupil weighting factor for a district equals 
  5.17  the lesser of one or the quotient obtained by dividing the 
  5.18  district's AFDC concentration percentage by 11.5.  
  5.19     (c) The AFDC pupil units for a district for fiscal year 
  5.20  1993 and thereafter equals the product of:  
  5.21     (1) the number of pupils enrolled in the district from 
  5.22  families receiving aid to families with dependent children 
  5.23  according to subdivision 1e; times 
  5.24     (2) the AFDC pupil weighting factor for the district; times 
  5.25     (3) .67. 
  5.26     Sec. 4.  [124.2448] [TECHNOLOGY REVENUE.] 
  5.27     Subdivision 1.  [TECHNOLOGY AID.] A school district that 
  5.28  provides an equal match is eligible for technology aid of $50 
  5.29  times the pupil units in the district. 
  5.30     Subd. 2.  [EQUALIZED TECHNOLOGY REVENUE.] Equalized 
  5.31  technology revenue is equal to $50 times the pupil units in the 
  5.32  district.  The revenue may be used as a match for the district's 
  5.33  technology aid and must be used for the purposes in subdivision 
  5.34  5. 
  5.35     Subd. 3.  [EQUALIZED TECHNOLOGY LEVY.] To obtain equalized 
  5.36  technology revenue, a school district may levy an amount not 
  6.1   more than the product of its equalized technology revenue 
  6.2   multiplied by the lesser of one or the ratio of its general 
  6.3   education levy to its general education revenue. 
  6.4      Subd. 4.  [EQUALIZED TECHNOLOGY AID.] A district's 
  6.5   equalized technology aid equals its equalized technology revenue 
  6.6   minus its equalized technology levy. 
  6.7      Subd. 5.  [USES OF TECHNOLOGY AID.] A district must use 
  6.8   technology aid and equalized technology revenue for any of the 
  6.9   following purposes: 
  6.10     (1) to provide computer work stations in each classroom 
  6.11  equipped so that students and teachers have access to the 
  6.12  internet and e-mail; 
  6.13     (2) to provide school district staff with telephones and 
  6.14  voicemail; 
  6.15     (3) to provide staff training to integrate technology with 
  6.16  curriculum to meet the graduation standards and to develop 
  6.17  skills that permit the staff to effectively use these 
  6.18  technologies. 
  6.19     Sec. 5.  Minnesota Statutes 1996, section 124.273, 
  6.20  subdivision 1d, is amended to read: 
  6.21     Subd. 1d.  [LEP BASE REVENUE.] (a) For fiscal year 1998 and 
  6.22  later, The limited English proficiency programs base revenue 
  6.23  equals the sum of the following amounts, computed using base 
  6.24  current year data:  
  6.25     (1) 68 percent of the salary of one full-time equivalent 
  6.26  teacher for each 40 25 pupils of limited English proficiency 
  6.27  enrolled, or 68 percent of the salary of one-half of a full-time 
  6.28  teacher in a district with 20 10 or fewer pupils of limited 
  6.29  English proficiency enrolled; and 
  6.30     (2) for supplies and equipment purchased or rented for use 
  6.31  in the instruction of pupils of limited English proficiency an 
  6.32  amount equal to 47 percent of the sum actually spent by the 
  6.33  district but not to exceed an average of $47 in any one school 
  6.34  year for each pupil of limited English proficiency receiving 
  6.35  instruction. 
  6.36     (b) For the purposes of this subdivision, a teacher 
  7.1   includes nonlicensed personnel who provide direct instruction to 
  7.2   students of limited English proficiency under the supervision of 
  7.3   a licensed teacher. 
  7.4      Sec. 6.  Minnesota Statutes 1996, section 124.273, 
  7.5   subdivision 1g, is amended to read: 
  7.6      Subd. 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
  7.7   district's limited English proficiency programs revenue for 
  7.8   fiscal year 1996 1998 and later equals the state total limited 
  7.9   English proficiency programs revenue, minus the amount 
  7.10  determined under paragraph (b), times the ratio of the 
  7.11  district's adjusted limited English proficiency programs base 
  7.12  revenue to the state total adjusted limited English proficiency 
  7.13  programs base revenue. 
  7.14     (b) Notwithstanding paragraph (a), if the limited English 
  7.15  proficiency programs base revenue for a district equals zero, 
  7.16  the limited English proficiency programs revenue equals the sum 
  7.17  of the following amounts, computed using current year data: 
  7.18     (1) 68 percent of the salary of one full-time equivalent 
  7.19  teacher for each 40 25 pupils of limited English proficiency 
  7.20  enrolled, or 68 percent of the salary of one-half of a full-time 
  7.21  teacher in a district with 20 10 or fewer pupils of limited 
  7.22  English proficiency enrolled; and 
  7.23     (2) for supplies and equipment purchased or rented for use 
  7.24  in the instruction of pupils of limited English proficiency an 
  7.25  amount equal to 47 percent of the sum actually spent by the 
  7.26  district but not to exceed an average of $47 in any one school 
  7.27  year for each pupil of limited English proficiency receiving 
  7.28  instruction amount calculated under subdivision 1d. 
  7.29     Sec. 7.  [124.305] [EXTENDED HOURS OF INSTRUCTION REVENUE.] 
  7.30     Subdivision 1.  [ELIGIBLE PUPIL.] A pupil is eligible for 
  7.31  extended hours of instruction revenue if the pupil has failed 
  7.32  any of Minnesota's basic skills tests or is determined by the 
  7.33  district to be performing below the level expected by the school 
  7.34  district. 
  7.35     Subd. 2.  [BASIC HOURS OF INSTRUCTION.] Basic hours of 
  7.36  instruction means the number of hours that instruction is 
  8.1   provided for that grade level in the school district during the 
  8.2   second previous school year. 
  8.3      Subd. 3.  [REVENUE.] Extended hours revenue equals the 
  8.4   product of: 
  8.5      (1) $4; 
  8.6      (2) the number of hours of additional instruction provided 
  8.7   in excess of the basic hours of instruction, up to 60; and 
  8.8      (3) the number of eligible pupils receiving the additional 
  8.9   instruction. 
  8.10     Extended hours revenue is provided in state aid. 
  8.11     Subd. 4.  [REVENUE USES.] A school district must use 
  8.12  extended day or extended year revenue on programs designed to 
  8.13  help students reach the levels of proficiency required by the 
  8.14  state graduation rule.  The programs may be offered through a 
  8.15  longer school day during the regular school year or through a 
  8.16  summer school program. 
  8.17     Sec. 8.  Minnesota Statutes 1996, section 124.3201, 
  8.18  subdivision 1, is amended to read: 
  8.19     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  8.20  section and sections 124.3202 and 124.321, the definitions in 
  8.21  this subdivision apply. 
  8.22     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
  8.23  means the 1994 summer program and the 1994-1995 school year.  
  8.24  Base year for later fiscal years means the second fiscal year 
  8.25  preceding the fiscal year for which aid will be paid. 
  8.26     (b) "Basic revenue" has the meaning given it in section 
  8.27  124A.22, subdivision 2.  For the purposes of computing basic 
  8.28  revenue pursuant to this section, each child with a disability 
  8.29  shall be counted as prescribed in section 124.17, subdivision 1. 
  8.30     (c) "Essential personnel" means teachers, related services, 
  8.31  and support services staff providing direct services to students.
  8.32     (d) "Average daily membership" has the meaning given it in 
  8.33  section 124.17. 
  8.34     (e) "Program growth factor" means 1.00 1.03 for fiscal year 
  8.35  1998 and later. 
  8.36     (f) "Aid percentage factor" means 60 percent for fiscal 
  9.1   year 1996, 70 percent for fiscal year 1997, 80 percent for 
  9.2   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
  9.3   percent for fiscal years 2000 and later. 
  9.4      (g) "Levy percentage factor" means 100 minus the aid 
  9.5   percentage factor for that year. 
  9.6      Sec. 9.  Minnesota Statutes 1996, section 124.323, 
  9.7   subdivision 2, is amended to read: 
  9.8      Subd. 2.  [EXCESS COST REVENUE.] For 1996 1998 and later 
  9.9   fiscal years, a district's special education excess cost revenue 
  9.10  equals 70 90 percent of the difference between (1) the 
  9.11  district's unreimbursed special education cost and (2) six 
  9.12  percent for fiscal year 1996 and 5.7 three percent for fiscal 
  9.13  year 1997 and later years of the district's general revenue. 
  9.14     Sec. 10.  Minnesota Statutes 1996, section 124A.22, 
  9.15  subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 
  9.16  amended to read: 
  9.17     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  9.18  district equals the formula allowance times the actual pupil 
  9.19  units for the school year.  The formula allowance for fiscal 
  9.20  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
  9.21  is $3,205.  The formula allowance for fiscal year 1997 and 
  9.22  subsequent fiscal years is $3,505.  The formula allowance for 
  9.23  fiscal year 1998 is $3,610.  The formula allowance for fiscal 
  9.24  year 1999 is $3,718.  The formula allowance for fiscal year 2000 
  9.25  and subsequent fiscal years equals the formula allowance for the 
  9.26  previous year times the ratio of the annual implicit price 
  9.27  deflator for state and local government purchases as prepared by 
  9.28  the United States Department of Commerce, for the most recently 
  9.29  available year to the previous year. 
  9.30     Sec. 11.  [REPORT.] 
  9.31     The commissioner of children, families, and learning must 
  9.32  undertake a study of special education funding mechanisms and 
  9.33  recommend to the 1998 legislature a special education funding 
  9.34  formula that ensures that the state will adequately fund the 
  9.35  costs associated with the services provided by school districts 
  9.36  to high-cost special education students. 
 10.1      Sec. 12.  [INFLATIONARY ADJUSTMENTS TO SCHOOL FUNDING 
 10.2   FORMULAS.] 
 10.3      For fiscal years 1998 and later, the formula amounts for 
 10.4   the funding programs listed below equal the formula amounts for 
 10.5   the previous year times 1.03: 
 10.6      (1) the early childhood family education allowance of 
 10.7   $101.25 under Minnesota Statutes, section 124.2711, subdivision 
 10.8   1; 
 10.9      (2) the community education allowance of $5.95 under 
 10.10  Minnesota Statutes, section 124.2713; 
 10.11     (3) the school district cooperation revenue allowance of 
 10.12  $67 under Minnesota Statutes, section 124.2727; 
 10.13     (4) state total LEP revenue under Minnesota Statutes, 
 10.14  section 124.273; 
 10.15     (5) targeted needs revenue under Minnesota Statutes, 
 10.16  section 124.313; 
 10.17     (6) the secondary vocational allowance of $80 under 
 10.18  Minnesota Statutes, section 124.573; 
 10.19     (7) the school lunch aid allowance of 6.5 cents for each 
 10.20  full paid, reduced, or free student lunch under Minnesota 
 10.21  Statutes, section 124.646; and 
 10.22     (8) the crime levy allowance of $1 per capita under 
 10.23  Minnesota Statutes, section 124.912, subdivision 6. 
 10.24     Sec. 13.  [APPROPRIATION.] 
 10.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 10.26  LEARNING.] The sums indicated in this section are appropriated 
 10.27  from the general fund to the commissioner of children, families, 
 10.28  and learning for the fiscal years designated. 
 10.29     Subd. 2.  [STAFF DEVELOPMENT.] For staff development and 
 10.30  training and remedial instruction for students related to 
 10.31  implementing the state's high school graduation rule and the 
 10.32  statewide system of educational accountability: 
 10.33       $.,...,...     1998 
 10.34       $.,...,...     1999 
 10.35  Any funds remaining in the first year do not cancel and are 
 10.36  available in the second year. 
 11.1      Subd. 3.  [RELEASE TIME.] For providing teachers with 
 11.2   release time for staff development and training and remedial 
 11.3   </u>
 11.4   instruction for students related to implementing the state's 
 11.5   high school graduation rule and the statewide system of 
 11.6   educational accountability: 
 11.7        $.,...,...     1998 
 11.8        $.,...,...     1999
 11.9      Subd. 4.  [LEP.] For limited English proficiency programs 
 11.10  under Minnesota Statutes, section 124.273: 
 11.11    $ 12,830,000   .....  1998
 11.12    $ 16,300,000   .....  1999
 11.13     The 1998 appropriation includes $930,000 for fiscal year 
 11.14  1997 and $11,900,000 for fiscal year 1998.  The 1999 
 11.15  appropriation includes $1,332,000 for fiscal year 1998 and 
 11.16  $14,968,000 for fiscal year 1999.  
 11.17     Subd. 5.  [SPECIAL EDUCATION AID.] For special education 
 11.18  aid: 
 11.19       $.,...,...     .....     1998
 11.20       $.,...,...     .....     1999 
 11.21     The 1998 appropriation includes $24,356,000 for fiscal year 
 11.22  1997 and $...,...,... for fiscal year 1998.  The 1999 
 11.23  appropriation includes $...,...,... for fiscal year 1998 and 
 11.24  $...,...,... for fiscal year 1999. 
 11.25     Subd. 6.  [SPECIAL EDUCATION DEFICIENCIES.] For 
 11.26  deficiencies in special education aid for fiscal years 1996 and 
 11.27  1997: 
 11.28       $.,...,...     .....     1998 
 11.29     Subd. 7.  [TECHNOLOGY.] For technology revenue according to 
 11.30  Minnesota Statutes, section 124.2448: 
 11.31       $.,...,...     .....     1998 
 11.32       $.,...,...     .....     1999 
 11.33     Subd. 8.  [GATEWAY PROGRAMS.] For gateway programs: 
 11.34       $1,000,000     .....     1998 
 11.35       $1,000,000     .....     1999 
 11.36     Subd. 9.  [EXTENDED DAY AND YEAR PROGRAMS.] For extended 
 11.37  day and extended year programs: 
 12.1        $50,000,000     .....     1998 
 12.2      Subd. 10.  [PERFORMANCE GRANTS.] For performance grants 
 12.3   under Laws 1994, chapter 647, article 7, section 18: 
 12.4        $1,000,000     .....     1998 
 12.5        $1,000,000     .....     1999 
 12.6      Any balance remaining in the first year does not cancel but 
 12.7   is available in the second year. 
 12.8      Sec. 14.  [REPEALER.] 
 12.9      Minnesota Statutes 1996, section 124.273, subdivision 1f, 
 12.10  is repealed for revenue for fiscal year 1998. 
 12.11     Sec. 15.  [EFFECTIVE DATE.] 
 12.12     Section 1 is effective the day following final enactment.