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HF 2021

as introduced - 90th Legislature (2017 - 2018) Posted on 04/18/2017 01:35pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/02/2017

Current Version - as introduced

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A bill for an act
relating to education finance; increasing funding for special education activities;
appropriating money; amending Minnesota Statutes 2016, sections 125A.76,
subdivisions 1, 2a, 2c; 125A.79, subdivision 5; repealing Minnesota Statutes 2016,
sections 125A.75, subdivision 7; 125A.76, subdivision 2b.

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

Section 1.

Minnesota Statutes 2016, 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,deleted text end 1.0 for
fiscal year 2016, 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.

deleted text begin (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014 and
2.27 percent for fiscal year 2015.
deleted text end

deleted text begin (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 for fiscal
year 2015.
deleted text end

deleted text begin (k)deleted text end new text begin (i)new text end "Special education aid increase limit" means $80 for fiscal year 2016, $100 for
fiscal year 2017,new text begin $171 for fiscal year 2018, $214 for fiscal year 2019, $330 for fiscal year
2020,
new text end and, for fiscal year deleted text begin 2018deleted text end new text begin 2021new text end and later, the sum of the special education aid increase
limit for the previous fiscal year and deleted text begin $40deleted text end new text begin $50new text end .

deleted text begin (l)deleted text end new text begin (j)new text end "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.

Sec. 2.

Minnesota Statutes 2016, section 125A.76, subdivision 2a, is amended to read:


Subd. 2a.

Special education initial aid.

For fiscal year deleted text begin 2016deleted text end new text begin 2018new text end and later, a district's
special education initial aid equals the sum of:

(1) the deleted text begin leastdeleted text end new text begin lessernew text end of deleted text begin 62 percent of the district's old formula special education
expenditures for the prior fiscal year, excluding pupil transportation expenditures,
deleted text end 50 percent
of the district's nonfederal special education expenditures for the prior year, excluding pupil
transportation expenditures, or deleted text begin 56deleted text end new text begin 57new text end percent of the product of the sum of the following
amounts, computed using prior fiscal year data, and the program growth factor:

(i) the product of the district's average daily membership served and the sum of:

(A) deleted text begin $450deleted text end new text begin $467new text end ; plus

(B) deleted text begin $400deleted text end new text begin $415new text end times the ratio of the sum of the number of pupils enrolled on October
1 who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus

(C) .008 times the district's average daily membership served; plus

(ii) deleted text begin $10,400deleted text end new text begin $12,700new text end times the December 1 child count for the primary disability areas
of autism spectrum disorders, developmental delay, and severely multiply impaired; plus

(iii) deleted text begin $18,000deleted text end new text begin $19,000new text end times the December 1 child count for the primary disability areas
of deaf and hard-of-hearing and emotional or behavioral disorders; plus

(iv) deleted text begin $27,000deleted text end new text begin $27,200new text end times the December 1 child count for the primary disability areas
of developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
physically impaired, visually impaired, and deafblind; plus

(2) the cost of providing transportation services for children with disabilities under
section 123B.92, subdivision 1, paragraph (b), clause (4).

Sec. 3.

Minnesota Statutes 2016, section 125A.76, subdivision 2c, is amended to read:


Subd. 2c.

Special education aid.

(a) For fiscal year 2016 and later, a district's special
education aid equals the sum of the district's special education initial aid under subdivision
2a and the district's excess cost aid under section 125A.79, subdivision 5.

(b) Notwithstanding paragraph (a), for fiscal year 2016, the special education aid for a
school district must not exceed the sum of the special education aid the district would have
received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79,
as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision
7
, and the product of the district's average daily membership served and the special education
aid increase limit.

(c) Notwithstanding paragraph (a), for fiscal year 2017 and later, the special education
aid for a school district must not exceed the sum of: (i) the product of the district's average
daily membership served and the special education aid increase limit and (ii) the product
of the sum of the special education aid the district would have received for fiscal year 2016
under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to
Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the
district's average daily membership served for the current fiscal year to the district's average
daily membership served for fiscal year 2016, and the program growth factor.

(d) Notwithstanding paragraph (a), for fiscal year 2016 and later the special education
aid for a school district, not including a charter school or cooperative unit as defined in
section 123A.24, must not be less than the lesser of (1) the district's nonfederal special
education expenditures for that fiscal year or (2) the product of the sum of the special
education aid the district would have received for fiscal year 2016 under Minnesota Statutes
2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012,
sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted daily
membership for the current fiscal year to the district's average daily membership for fiscal
year 2016, and the program growth factor.

(e) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first year
of operation shall generate special education aid based on current year data. A newly formed
cooperative unit as defined in section 123A.24 may apply to the commissioner for approval
to generate special education aid for its first year of operation based on current year data,
with an offsetting adjustment to the prior year data used to calculate aid for programs at
participating school districts or previous cooperatives that were replaced by the new
cooperative.new text begin The department shall establish procedures to adjust the prior year data and
fiscal year 2016 old formula aid used in calculating special education aid to exclude costs
that have been eliminated for districts where programs have closed or where a substantial
portion of the program has been transferred to a cooperative unit.
new text end

(f) The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2018 and later.
new text end

Sec. 4.

Minnesota Statutes 2016, section 125A.79, subdivision 5, is amended to read:


Subd. 5.

Excess cost aid.

deleted text begin For fiscal year 2016 and later,deleted text end new text begin (a)new text end A district's excess cost aid
equals the greater of:

(1) deleted text begin 56 percent ofdeleted text end new text begin the product of the excess cost aid percentage under paragraph (b) andnew text end
the difference between (i) the district's unreimbursed nonfederal special education
expenditures and (ii) 7.0 percent of the product of the ratio of $5,831 to the formula allowance
for the prior year and the district's general revenue;

(2) 62 percent of the difference between (i) the district's unreimbursed old formula special
education expenditures and (ii) deleted text begin 2.5deleted text end new text begin 2.2new text end percent of the product of the ratio of $5,831 to the
formula allowance for the prior year and the district's general revenue; or

(3) zero.

new text begin (b) The excess cost aid percentage equals 56 percent for fiscal years 2016 and 2017, 57
percent for fiscal years 2018 and 2019, and 66 percent for fiscal year 2020 and later.
new text end

Sec. 5. 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; regular. new text end

new text begin For special education aid under Minnesota Statutes,
section 125A.75:
new text end

new text begin $
new text end
new text begin 1,345,295,000
new text end
new text begin .....
new text end
new text begin 2018
new text end
new text begin $
new text end
new text begin 1,426,749,000
new text end
new text begin .....
new text end
new text begin 2019
new text end

new text begin The 2018 appropriation includes $155,271,000 for 2017 and $1,190,024,000 for 2018.
new text end

new text begin The 2019 appropriation includes $167,521,000 for 2018 and $1,259,228,000 for 2019.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 125A.75, subdivision 7; and 125A.76, subdivision
2b,
new text end new text begin are repealed effective for fiscal year 2018 and later.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-3853

125A.75 SPECIAL EDUCATION PROGRAMS; APPROVAL; AID PAYMENTS; TRAVEL AID; LITIGATION COSTS.

Subd. 7.

Allocation from cooperative centers, service cooperatives, education districts, and intermediate districts.

For purposes of this section, a special education cooperative, service cooperative, education district, or an intermediate district must allocate its approved expenditures for special education programs among participating districts. Special education aid for services provided by a cooperative, service cooperative, education district, or intermediate district must be paid to the participating school districts.

125A.76 SPECIAL EDUCATION AID.

Subd. 2b.

Cross subsidy reduction aid.

For fiscal years 2014 and 2015, the cross subsidy reduction aid for a school district, not including a charter school, equals the lesser of (a) the product of the cross subsidy reduction aid limit and the district's average daily membership served or (b) the sum of the product of the cross subsidy reduction aid percentage, the district's average daily membership served, and the sum of:

(1) $450; plus

(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus

(3) .008 times the district's average daily membership served; plus the product of the cross subsidy aid percentage and the sum of:

(i) $10,100 times the December 1 child count for the primary disability areas of autism spectrum disorders, developmental delay, and severely multiply impaired; plus

(ii) $17,500 times the December 1 child count for the primary disability areas of deaf and hard-of-hearing and emotional or behavioral disorders; plus

(iii) $26,000 times the December 1 child count for the primary disability areas of developmentally cognitive mild-moderate, developmentally cognitive severe-profound, physically impaired, visually impaired, and deafblind.